31-768. Dissolution and merger of districts; resolution; notice; hearing; restrictions; filing; effect.

Whenever a majority of the respective boards of trustees or the administrators of two sanitary and improvement districts organized under the provisions of Chapter 31, article 7, organized within the same county shall desire that one of the districts shall wholly merge into the other district, the trustees or administrators shall first propose a joint resolution declaring the advisability of such merger and setting out verbatim the terms and conditions thereof and specifying which district shall be the surviving district, and also setting out the time and place when the boards of trustees or administrators of the two districts shall meet to consider the adoption of such resolution. If any part of either district lies within the area of the zoning jurisdiction of any municipality, then the trustees or the administrators shall mail a copy of such proposed joint resolution to such municipality within five days after the date of first publication of the published notice described in this section. Notice of the time and place when such resolution shall be set for consideration shall be published the same day each week for two consecutive weeks in a newspaper of general circulation published in the county where the districts were organized, which publication shall contain the entire wording of the proposed resolution. The last publication shall be not less than five days nor more than two weeks prior to the time set for hearing on objections to the passage of the resolution, at which hearing the owners of property within either of the districts or the holders of any unpaid bonds, warrants, or other obligations of either district, or any municipality if any part of such district or districts lies within the area of its zoning jurisdiction, may appear and make objections to the proposed resolution. If a petition opposing such resolution is signed by property owners representing a majority of the area of real estate within either district or is signed by any holder of any unpaid bonds, warrants, or other obligations of either district and if such petition is presented to the boards of trustees or administrators on or prior to the hearing date, then the boards of trustees or administrators shall not adopt such resolution. After the boards of trustees or administrators have both adopted such resolution of merger, the clerk of the district or the administrator shall prepare and file a certified copy of such resolution of merger in the office of the county clerk where the original articles of association of the districts were filed and in the office of the Secretary of State, and thereupon the surviving district shall succeed to and become vested with full title to all the property and property rights of every kind, contracts, obligations, and choses in action of every kind held by or belonging to the nonsurviving district, and the surviving district shall also be liable for and recognize, assume, and carry out all valid contracts and obligations of the nonsurviving district including all outstanding warrants, bonds, or other indebtedness. All taxes, assessments, and demands of every kind due or owing to the nonsurviving district shall be paid to and collected by the surviving district. Upon the filing of the certified copies of the resolution of merger as provided in this section, the corporate existence of the nonsurviving district shall thereupon terminate and the boundaries of the surviving district shall be extended to include all the territory within the boundaries of the nonsurviving district. A majority of the board of trustees or the administrator of the surviving district shall have power, from time to time, to give binding directions in writing to the county treasurer of the county in which the surviving district is located, directing that the treasurer segregate the special assessment funds of the two districts or directing the segregation of the other assets of the two districts or directing the method and priority of payment of registered warrants of the two districts, or giving directions to the county treasurer as to other problems of fiscal management of the affairs of the two districts involved in the merger.

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