§ 61-11-12 — Liquidation of district indebtedness

After the sale of the property and franchises of an irrigation district, the board, with the
moneys realized from such sale together with such other funds as such district may have, shall
make settlement, payment, and redemption of all outstanding bonded or other indebtedness of
the district, but in no case shall such board pay more than the par value of outstanding bonds or
warrants, as the case may be, with interest up to the time of payment. If the amount realized
from the sale of such district property, together with other moneys of the district, shall be
insufficient for the payment of all the indebtedness of the district, such district shall not be
dissolved or discontinued until such indebtedness is fully paid, and assessments shall continue
to be made against the lands in the district in the manner provided by law for the levy of
assessments to pay bonds and other indebtedness of irrigation districts until a sufficient amount
is raised to pay in full all obligations of such district.