North Dakota Code § 21-01-04

Warrants for current expenses
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In case any taxing district is unable to sell its certificates of indebtedness, it may issue 
warrants in payment of current expenses in excess of cash on hand, but not in excess of 
eighty-five percent of taxes levied for the fiscal year of issue but uncollected and not otherwise 
encumbered, plus fifty percent of the uncollected and not otherwise encumbered taxes of the 
four preceding years, and the funds derived from the collection of taxes for the current year and 
such preceding years, to the extent that the same have been encumbered, constitute a special 
fund for the payment of warrants issued against such taxes. If warrants are issued in excess of 

such limitations, such warrants possess no validity as against the taxing district, but the officials 
knowingly and willfully issuing the same are liable personally for the payment thereof.

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