(1) An authority, if the contract establishing it so provides, shall be the successor to any nonprofit corporation, agency, or other entity theretofore organized to provide public highways, shall be entitled to all rights and privileges, and shall assume all obligations and liabilities of such other entity under existing contracts to which such entity is a party. An authority and a county or municipality which is a member of the combination may enter into a contract by which the county or municipality assigns its liabilities and obligations, and the authority assumes such liabilities and obligations, under any contract, resolution, ordinance, or other public act which the county or municipality has entered into or adopted with respect to the financing, construction, operation, or maintenance of a public highway, including bonds which it has issued.
(2) A county or municipality that has issued bonds to finance a public highway prior to the creation of an authority and that has lent all or a portion of the proceeds of such bonds to such authority shall not take any action or fail to take any action that would limit the availability of the proceeds of such bonds to the authority or adversely affect the ability of the authority to finance the public highway unless the authority consents or unless such action or failure to act is required by the agreements with the holders of the bonds. If a county or municipality has assigned to an authority its rights and privileges regarding bonds issued to finance a public highway, such county or municipality shall take any action requested by the authority in connection with such bonds and the documents governing such bonds. A county or municipality which has assigned to an authority all of its rights and privileges regarding bonds issued by the county to finance a public highway shall not have any financial liability with respect to the repayment of such bonds except to the extent expressly provided in the bonds or the assignment. The assumption of obligations and liabilities by an authority pursuant to this section shall not be deemed to be the creation of any new debt or obligation for the purposesof the constitution or laws of the state.
(3) The provisions of subsection (2) of this section may be enforced by the authority filing an action for mandamus or injunctive relief with the district court. The district court shall enter an order within thirty days after the filing of any such action.
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal plans you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with easy access to affordable legal services through a network of independent law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our network law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your network law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal plans, and access to the LegalFix networks of law firms are subject to the LegalFix Terms of Service and Privacy Policy.