21-03-04. Grant of power to borrow - General limitations of indebtedness.

369 words·~2 min read·/nd/title-21/chapter-21-03-bonds/21-03-04

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

1. A municipality may borrow money and issue municipal obligations for the purpose

specified and by the procedure provided in this chapter, and for no other purpose and

in no other manner, except as otherwise provided in section 21-03-02. A municipality

may not incur indebtedness in any manner or for any purpose in an amount which,

with all other outstanding indebtedness of the municipality, exceeds five percent of the

assessed value of the taxable property in the municipality, except:

a. An incorporated city, by a two-thirds vote of the qualified voters of the city voting

upon the question at a primary or general election, may increase the limit of

indebtedness three percent on the assessed value beyond the five percent limit,

and a school district, by a majority vote of the qualified voters of the school district

voting upon the question at a primary or general election, may increase the

limitation of indebtedness five percent on the assessed value beyond the five

percent limit.

b. A county or city, when authorized by a majority vote of the qualified voters of the

county or city voting upon the question at a primary or general election, may

issue bonds upon any revenue-producing utility owned by a county or city, for the

purchase or acquisition of the utility, or the building or establishment of the utility,

in amounts not exceeding the physical value of the utility, industry, or enterprise.

c. An incorporated city, if authorized by a majority vote of the qualified voters of the

city voting upon the question at a primary or general election, may become

indebted in any amount not exceeding four percent of the assessed value,

without regard to the existing indebtedness of the city, for the purpose of

constructing or purchasing waterworks for furnishing a supply of water to the

inhabitants of the city or for the purpose of constructing sewers, and for no other

purposes, but the aggregate of the additional indebtedness for waterworks and

sewers may not exceed four percent over the limitations of indebtedness in this

section.

2. All bonds or obligations in excess of the amount of indebtedness permitted by this

chapter, given by any municipality as defined in this chapter, are void.