ND HB1385

Creates section 40-57-19.2 of the North Dakota Century Code authorizing municipalities to issue refunding bonds to refund previously issued bonds for purposes including extending maturities, consolidating or restructuring debt, or removing covenants.

Allows refunding bond principal to include the original bond principal, accrued or future interest, redemption premiums, issuance expenses, and interest on the refunding bonds paid from proceeds.

Requires escrow deposit of refunding bond proceeds with a bank or trust company when bonds are sold more than six months before redemption, with funds invested in U.S. Treasury obligations or securities guaranteed by the United States.

Permits escrowed funds and earnings to be used to retire outstanding bonds, pay principal or interest on refunding bonds, or cover related expenses.

Allows any unexpended escrow funds to be returned to industrial or commercial enterprises as overpayment of rentals or purchase price installments.