61-13 Organization of Corporations for Irrigation Purposes - North Dakota Statutes

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CHAPTER 61-13ORGANIZATION OF CORPORATIONS FOR IRRIGATION PURPOSES61-13-01.Corporations or limited liability companies may be organized forirrigation purposes. A corporation or limited liability company may be formed for the purpose of
acquiring water rights, or for the purpose of establishing, owning, leasing, operating, and
maintaining an irrigation system and selling, distributing, supplying, and delivering water for
irrigation purposes, or for domestic use, to its members or stockholders.61-13-02. Powers of corporations and limited liability companies organized underchapter. A corporation or limited liability company organized for irrigation purposes may:1.Engage in any corporate activity not otherwise prohibited by law and not inconsistent
with the purposes mentioned in section 61-13-01.2.Acquire water rights, easements, sites, and all means, property, machinery, and
equipment necessary or required in connection with the operation and maintenance
of an irrigation system.3.Establish, construct, maintain, and operate pumping plants, wells, pipelines, canals,
and ditches and all other necessary facilities required for the appropriation of water
and the operation and maintenance of an irrigation system.4.Borrow money in an amount, whether in excess of the amount of its capital stock or
membership interests or not, necessary to enable it to carry out the intent and
purposes for which it is organized, and as security for the payment of any loan, to
pledge or mortgage real or personal property acquired by the proceeds of such loan,
or otherwise, including future earnings or income of the corporation or limited liability
company.5.Acquire, purchase, or lease water rights, franchises, and irrigation works and
facilities, or any part thereof, from any person, firm, corporation, limited liability
company, or irrigation district, and from any state or federal agency.6.Furnish water for irrigation or domestic use, to its members or stockholders, and to
furnish and sell water to any person, firm, corporation, or limited liability company.7.Adopt bylaws and rules for the furnishing of water, and for charges to be made
therefor.8.Levy assessments against its members or stockholders necessary for the
maintenance and operation of the irrigation system, if one is established and
maintained.9.Fix rates of tolls and charges for water, to collect the same, to require that charges
for water be paid in advance of the irrigation season, to suspend the delivery of
water to any land for the irrigation of which the charges and tolls have not been paid,
and to provide for the suspension of water delivery to any land upon which
assessments, apportioned and levied, remain unpaid for one year after having
become due and payable.10.Enter into contracts with any person, firm, association, corporation, limited liability
company, irrigation district, this state, or any department or agency thereof, or the
United States, or with any department or agency of the United States, for supplying
water for the irrigation of the lands of its members or stockholders. Such supply of
water may be either the entire supply of water necessary to irrigate said lands or to
supplement waters supplied or controlled by the corporation or limited liability
company.Page No. 111.Do each and every thing necessary, suitable, or proper for the accomplishment of
any one or more of the objects enumerated in this section, and to exercise and
possess all powers, rights, and privileges necessary or incidental to the purposes for
which the corporation or limited liability company is organized, or to the activities in
which it is engaged.12.Exercise any other rights, powers, and privileges not inconsistent with the purposes
of this chapter granted by this state to ordinary corporations or limited liability
companies or to mutual aid corporations organized under chapter 10-12.61-13-03. Articles of incorporation or bylaws may restrict sales to stockholders -When stock to become appurtenant to land - Sale of water to others.Any corporationorganized for irrigation purposes may provide in its articles of incorporation or bylaws that water
shall be sold, distributed, supplied, or delivered only to owners of its shares of stock and that
such shares shall be appurtenant to the lands described in the certificate issued and evidencing
such shares of stock. When such certificate and a copy of such articles of incorporation or
bylaws are recorded in the office of the recorder of the county in which such lands are situated,
such shares of stock shall become appurtenant to said lands and shall be transferred only with
the sale or transfer of such lands, except in the event of sale or forfeiture of such shares of stock
for delinquent assessments thereon as provided in section 61-13-04.Notwithstanding suchprovision in its articles of incorporation or bylaws, any corporation organized for irrigation
purposes may sell water to an irrigation district, this state, or any department or agency thereof,
and to the United States, or any department or agency thereof, at the same rates as to holders of
shares of such corporation.In the event lands to which any such stock is appurtenant areacquired by this state, the United States, or any department or agency thereof, such stock shall
be canceled by the corporation, but shall be reissued to any persons subsequently acquiring title
to such land.61-13-03.1.Articles of organization or bylaws may restrict sales to members -When membership interest to become appurtenant to land - Sale of water to others. Any
limited liability company organized for irrigation purposes may provide in the articles of
organization or bylaws that water must be sold, distributed, supplied, or delivered only to owners
of the limited liability company's membership interests and that these membership interests must
be appurtenant to the land described in the document evidencing these membership interests. If
a copy of the articles of organization or bylaws is recorded in the office of the recorder of the
county in which the lands are situated, the membership interests become appurtenant to the
lands and may be transferred only with the sale or transfer of the lands, except in the event of
sale or forfeiture of the membership interests for delinquent assessments on the land as provided
in section 61-13-04. Notwithstanding any provision in the limited liability company's articles of
organization or bylaws, any limited liability company organized for irrigation purposes may sell
water to an irrigation district, this state, or any department or agency of this state, and to the
United States, or any department or agency of the United States, at the same rates as to holders
of membership interests of the limited liability company.If lands to which any membershipinterest is appurtenant are acquired by the state, the United States, or any department or agency
of the state or the United States, the membership interest must be canceled by the limited liability
company and must be reissued to any persons acquiring title to the land at a later date.61-13-04. Assessments may be levied upon capital stock. Any corporation or limitedliability company organized for irrigation purposes, unless otherwise provided in its articles of
incorporation or bylaws, may levy assessments upon its capital stock whether or not such stock
is paid in full. If any shares of stock of any such corporation or membership interests of any such
limited liability company, which have been made appurtenant to any land as provided in section
61-13-03, become delinquent in the payment of assessments, the right to receive water
thereunder or through dividends on such stock or membership interests may be denied and such
shares or membership interests may be forfeited to the corporation or limited liability company.Page No. 2Document Outlinechapter 61-13 organization of corporations for irrigation purposes