(a) Any drainage district which shall merge the duties, obligations, and purposes for which it was originally created with those of another district under the provisions of this subchapter shall merge all assets held by it and arising from any projects and shall also assume all liabilities of the district whether created for purposes for which the district was originally created or those assumed by it under the provisions of this subchapter.
(b) (1) The assets may be used by the merged district for any and all purposes now or hereafter authorized by law, and the liabilities of the merged district may be paid with funds arising from any source.
(2) However, if at the time of the merger, a merging drainage district has remaining cash balances which were dedicated to specific projects that remain uncompleted at the time of the merger, then those balances shall be spent only on the specific uncompleted projects, or if the district has made assessments which were dedicated for the construction of a specific project or improvement, then those assessments shall be used only on the specific projects within the boundaries of the former drainage district from which the assessments were made.
(c) All the provisions, rights, securities, pledges, covenants, and limitations contained in the instrument creating the liability shall not be affected by the merger but shall apply with the same force and effect as provided in the original creation of the liability.
(d) All bonds or notes heretofore issued by the drainage district shall not be affected by this merger, but they shall bear the same rate of interest as now provided and shall be due and payable at the time and place provided in the original issue of the bonds or notes.
Section: Previous 14-121-1102 14-121-1103 14-121-1104 14-121-1105 14-121-1106 14-121-1107 14-121-1108 14-121-1109 14-121-1110 NextLast modified: November 15, 2016