N.D. Cent. Code § 15-55-05.1
The board may provide for interim financing pending completion of revenue-producing projects at state institutions of higher learning and financing the cost thereof and may authorize the issuance and sale of special interim warrants for that essential governmental purpose, such warrants to be paid with interest from:
The board shall arrange for the proper preparation and sale of the warrants and shall issue the warrants in an aggregate principal amount not exceeding the sum of bonds authorized and necessary to finance completion of the project. Interim warrants are subject to call and prepayment on thirty days' prior written notice to the place of payment at par and accrued interest to date of prepayment at the option of the board; must mature not more than three years from their date; and may bear such rate or rates of interest as the board may provide, not exceeding an average net interest cost of twelve percent per annum on issues sold at private sale. There is no interest rate ceiling on warrant issues sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities. Interim warrants may be sold on the basis of ninety-five percent of par plus accrued interest to date of delivery. All warrants for a particular project must mature within three years from the date of issuing the first warrants for the project. If warrants are issued to refund warrants, the refunded warrants must be paid and canceled upon the issuance of the refunding warrants, or the proceeds at the sale of the refunding warrants, excepting the accrued interest received, must be used to purchase direct obligations of the United States of America. Such obligations must mature at such time or times, with interest thereon or the proceeds received therefrom, to provide funds adequate to pay, when due or called for redemption prior to maturity, the warrants to be refunded together with the interest accrued thereon and any redemption premium due thereon. Such proceeds or obligations of the United States of America must, with all other funds legally available for such purpose, be deposited in escrow with a banking corporation or national banking association located in and doing business in the state of North Dakota, with power to accept and execute trusts, or any successor thereto, which is also a member of the federal deposit insurance corporation and of the federal reserve system. The proceeds or obligations are to be held in an irrevocable trust solely for and until the payment and redemption of the warrant to be refunded. Any balance remaining in escrow after the payment and retirement of the warrants to be refunded must be returned to the board to be used and held for use as revenues pledged for the payment of the definitive bonds. Interim warrants have all of the qualities and incidents of negotiable paper and are not subject to taxation by the state of North Dakota or by any county, municipality, or political subdivision therein. Interim warrants are eligible for investment of funds the same as definitive bonds are or would be eligible for investment under section 15-55-08.
Such warrants may not constitute a general obligation indebtedness of the state of North Dakota nor of the institution for which they are issued nor of the state board of higher education nor of the individual members, officers, or agents thereof; are payable solely as provided in this section; and the warrants issued and sold must so state.
N.D.C.C. § 15-55-05.1