ND HB1194

Creates a new chapter to title 21 of the North Dakota Century Code authorizing political subdivisions to borrow funds from banks or credit unions located in the state against anticipated revenues.

Political subdivisions may borrow up to $500,000 in outstanding principal from banks or credit unions, with loans requiring governing body resolution and signature by the president, chairman, auditor, business manager, and secretary or equivalent officers.

Bank or credit union loans must be repaid in full within 5 years from the date of loan origination, with loan documents describing the revenues designated for repayment and potentially requiring a separate repayment fund.

Collateral for loans may consist only of property purchased with loan proceeds; if designated revenues are insufficient, political subdivisions may set aside up to 10 percent of current tax revenue collections monthly until delinquent loans are paid in full.

Amends existing code sections to exempt lease-purchase agreements and bank or credit union loans from bond issuance requirements and updates the definition of "revenues" to include amounts from issuance and sale of political subdivision obligations.