N.D. Cent. Code § 40-43-05
When warrants payable from special assessments made to pay the cost of a local improvement have been or shall be issued by a municipality and the holder or holders of all or any portion of the issue of such warrants shall procure a final judgment against the municipality in damages based on the municipality's negligence or breach of duty in the levy or collection of the special assessments and such judgment shall be compromised and funded by the issuance of bonds as provided in this chapter, the municipality shall succeed and be subrogated to the rights of the holder or holders of the warrants in and to all remaining uncollected special assessments and to the fund created thereby, and the municipality shall receive payment and distribution from the uncollected special assessments as if it owned and held the warrants affected by the judgment. Moneys acquired in such manner by or for the municipality shall be held apart from its general funds and shall be applied first to the payment of the bonds issued in compromise of the judgment. After payment of all bonds issued in compromise of the judgment, the levy of an annual tax for the payment of the same shall be discontinued, and the municipality shall cover into its general fund any surplus then or thereafter acquired from its interest in the fund created by the special assessments.
N.D.C.C. § 40-43-05