North Dakota Code § 40-40-20

Contracts made prior to appropriation prohibited - Contracts for water for
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fire protection excepted.
Except as otherwise provided in this chapter or in section 40 -05-05, no contract shall be 
made by the governing body of a municipality and no expense shall be incurred by any officers 
or departments of the corporation unless there shall have been a previous appropriation 
providing for such expense. The governing body may enter into contracts with persons, 
associations, corporations, or limited liability companies for the furnishing of water for fire 
protection to the municipality, and in case such contract extends over a term of years, it shall be 
unnecessary that a previous appropriation shall have been made except to cover the amounts 
payable under the contract for the first year thereof. Such a contract shall not be made for a 
longer period than twenty years.

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