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61-13 Organization of Corporations for Irrigation Purposes

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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<br>acquiring water rights, or for the purpose of establishing, owning, leasing, operating, and<br>maintaining an irrigation system and selling, distributing, supplying, and delivering water for<br>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<br>with the purposes mentioned in section 61-13-01.2.Acquire water rights, easements, sites, and all means, property, machinery, and<br>equipment necessary or required in connection with the operation and maintenance<br>of an irrigation system.3.Establish, construct, maintain, and operate pumping plants, wells, pipelines, canals,<br>and ditches and all other necessary facilities required for the appropriation of water<br>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<br>membership interests or not, necessary to enable it to carry out the intent and<br>purposes for which it is organized, and as security for the payment of any loan, to<br>pledge or mortgage real or personal property acquired by the proceeds of such loan,<br>or otherwise, including future earnings or income of the corporation or limited liability<br>company.5.Acquire, purchase, or lease water rights, franchises, and irrigation works and<br>facilities, or any part thereof, from any person, firm, corporation, limited liability<br>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<br>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<br>therefor.8.Levy assessments against its members or stockholders necessary for the<br>maintenance and operation of the irrigation system, if one is established and<br>maintained.9.Fix rates of tolls and charges for water, to collect the same, to require that charges<br>for water be paid in advance of the irrigation season, to suspend the delivery of<br>water to any land for the irrigation of which the charges and tolls have not been paid,<br>and to provide for the suspension of water delivery to any land upon which<br>assessments, apportioned and levied, remain unpaid for one year after having<br>become due and payable.10.Enter into contracts with any person, firm, association, corporation, limited liability<br>company, irrigation district, this state, or any department or agency thereof, or the<br>United States, or with any department or agency of the United States, for supplying<br>water for the irrigation of the lands of its members or stockholders. Such supply of<br>water may be either the entire supply of water necessary to irrigate said lands or to<br>supplement waters supplied or controlled by the corporation or limited liability<br>company.Page No. 111.Do each and every thing necessary, suitable, or proper for the accomplishment of<br>any one or more of the objects enumerated in this section, and to exercise and<br>possess all powers, rights, and privileges necessary or incidental to the purposes for<br>which the corporation or limited liability company is organized, or to the activities in<br>which it is engaged.12.Exercise any other rights, powers, and privileges not inconsistent with the purposes<br>of this chapter granted by this state to ordinary corporations or limited liability<br>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<br>shall be sold, distributed, supplied, or delivered only to owners of its shares of stock and that<br>such shares shall be appurtenant to the lands described in the certificate issued and evidencing<br>such shares of stock. When such certificate and a copy of such articles of incorporation or<br>bylaws are recorded in the office of the recorder of the county in which such lands are situated,<br>such shares of stock shall become appurtenant to said lands and shall be transferred only with<br>the sale or transfer of such lands, except in the event of sale or forfeiture of such shares of stock<br>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<br>purposes may sell water to an irrigation district, this state, or any department or agency thereof,<br>and to the United States, or any department or agency thereof, at the same rates as to holders of<br>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<br>be canceled by the corporation, but shall be reissued to any persons subsequently acquiring title<br>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<br>limited liability company organized for irrigation purposes may provide in the articles of<br>organization or bylaws that water must be sold, distributed, supplied, or delivered only to owners<br>of the limited liability company's membership interests and that these membership interests must<br>be appurtenant to the land described in the document evidencing these membership interests. If<br>a copy of the articles of organization or bylaws is recorded in the office of the recorder of the<br>county in which the lands are situated, the membership interests become appurtenant to the<br>lands and may be transferred only with the sale or transfer of the lands, except in the event of<br>sale or forfeiture of the membership interests for delinquent assessments on the land as provided<br>in section 61-13-04. Notwithstanding any provision in the limited liability company's articles of<br>organization or bylaws, any limited liability company organized for irrigation purposes may sell<br>water to an irrigation district, this state, or any department or agency of this state, and to the<br>United States, or any department or agency of the United States, at the same rates as to holders<br>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<br>of the state or the United States, the membership interest must be canceled by the limited liability<br>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<br>incorporation or bylaws, may levy assessments upon its capital stock whether or not such stock<br>is paid in full. If any shares of stock of any such corporation or membership interests of any such<br>limited liability company, which have been made appurtenant to any land as provided in section<br>61-13-03, become delinquent in the payment of assessments, the right to receive water<br>thereunder or through dividends on such stock or membership interests may be denied and such<br>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