§ 36-10-3-28 — Primary obligation on bond; transfer of powers, duties, liabilities, and other obligations on discontinuation or establishment of new board

(a) If a board or district is discontinued
under section 3 or 3.1 of this chapter, and a new board or district is not
established, the primary obligation on its bonds is not affected, and the
unit assumes liability for the payment of the bonds according to their
terms.
(b) An ordinance adopted under section 3 or 3.1 of this chapter that
discontinues a board or district and establishes a new board or district
must provide all of the following:
(1) All powers, duties, and liabilities of the discontinued board or
district are transferred to the newly established board or district.
(2) All records and property of each entity, including
appropriations and other funds under the control or supervision of
the discontinued board or district, are transferred to the newly
established board or district.
(3) Any amounts owed to a discontinued board or district before
the effective date of the ordinance are considered to be owed to
the new board or district.
(4) All powers, duties, and liabilities of a discontinued board or
district with respect to bonds issued by that board or district are
transferred to the newly established board or district, as the
successor board or district. The rights of the bondholders of a
discontinued board or district remain unchanged, although the
powers, duties, and liabilities of the entity have been transferred
to the new board or district, as the successor board or district, as
of the effective date of the ordinance adopted under section 3 or
3.1 of this chapter.
[Pre-Local Government Recodification Citation:
19-7-4-43.]
As added by Acts 1981, P.L.309, SEC.110. Amended by
P.L.75-2019, SEC.6.