# Title 21 — Governmental Finance

## Chapter 21-02.1 — Evidence of Indebtedness Proceedings - Judicial Review

### § 21-02.1-01. Proceedings to judicially confirm evidence of indebtedness proceedings.

Any political subdivision of the state authorized to issue evidence of indebtedness, prior to
or subsequent to adoption of any or all of the proceedings regarding the issuance of that
evidence of indebtedness or proceedings relating to the payment of that evidence of
indebtedness may commence a special proceeding in district court to have those proceedings
judicially examined, approved, and confirmed or disapproved.
### § 21-02.1-02. Petition by political subdivision of the state for court to examine and

approve evidence of indebtedness proceedings - Contents of petition.
Any political subdivision of the state may file in the district court of any county in which the
political subdivision is situated, in whole or in part, a petition, prior to or subsequent to issuance
of any evidence of indebtedness, requesting that any or all of the proceedings regarding the
issuance or payment of the evidence of indebtedness be examined, approved, and confirmed
by the court. The petition must state the facts concerning the proceedings and that the petitioner
is a political subdivision of the state.
### § 21-02.1-03. Hearing of petition - Notice of filing and hearing.

The court shall fix the time for the hearing of the petition provided for in this chapter and
shall order the clerk of court to have published a notice of the filing of the petition, stating the
time and place the court will hear the petition, and stating that any person interested in the
proceedings for the issuance or payment of the evidence of indebtedness, on or before the day
fixed for hearing of the petition, may answer the petition. The petition may be referred to and
described in the notice as the petition of the named political subdivision requesting that the
proceedings be examined, approved, and confirmed by the court. Notice must be given by
publication in the official newspaper of the county in which the petition is filed, once each week
for two consecutive weeks. The hearing must be held, in the discretion of the court, not less
than fifteen days nor more than sixty days after the last publication of the notice.
### § 21-02.1-04. Answer to petition - Defense by person interested.

Any person interested in the proceedings for issuance or sale of the evidence of
indebtedness or proceedings relating to the payment of the evidence of indebtedness may
answer the petition. The provisions of title 28 and the North Dakota Rules of Civil Procedure
relating to the answer to a complaint are applicable to an answer to a petition. The person
answering the petition must be the defendant in the special proceeding and the political
subdivision must be the plaintiff. Every material statement of the petition not specifically
controverted by the answer, for the purpose of the special proceeding, is to be taken as true.
Each person failing to answer the petition is deemed to admit as true all the material statements
of the petition. The rules of pleading and practice provided by title 28 and the North Dakota
Rules of Civil Procedure which are not inconsistent with the provisions of this chapter are
applicable to the special proceeding provided for in this chapter.
### § 21-02.1-05. Powers of court upon trial - Amendment of petition.

At the time and place for the hearing, the court shall find and determine whether the notice
of the filing of the petition has been published. When the court has determined that it has
jurisdiction to hear the petition, it shall proceed with the hearing and shall conduct the hearing
as in the case of a trial of a civil action without a jury. The court shall examine into and
determine the legality and validity of the proceedings and all matters affecting the legality or
validity of proceedings for the issuance or payment of the evidence of indebtedness. The court
shall disregard any error, irregularity, or omission which does not affect the substantial rights of
the parties to the hearing. The court shall permit the petition to be amended so as to conform to
the evidence and facts presented at the hearing.

### § 21-02.1-06. Conclusion of hearing - Findings - Decree - Costs of hearing - Filing

copies of findings.
Upon the conclusion of the hearing the court shall determine the legality and validity of the
proceedings for the issuance or payment of the evidence of indebtedness and shall determine
the validity and legality of any other matter properly before the court. The court shall prepare its
findings of fact and conclusions of law and shall order that the decree of the court be entered.
