§ 14-120-312 - Consolidation and use of assets -- Prior liabilities and obligations.
14-120-312. Consolidation and use of assets -- Prior liabilities and obligations.
(a) Any levee district, drainage district, or levee and drainage district, which shall consolidate the duties, obligations, and purposes for which it was originally created with those assumed under the provisions of subchapter 2 of this chapter and acts amendatory thereto, shall consolidate all assets held by it arising from either project 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 subchapter 2 of this chapter and acts amendatory thereto.
(b) The assets may be used by the district for any and all purposes now or hereafter authorized by law, and the liabilities of the district may be paid with funds arising from any source.
(c) All the provisions, rights, security, pledges, covenants, and limitations contained in the instrument creating the liability shall not be affected by the consolidation 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 levee district, drainage district, or levee and drainage district shall not be affected by this consolidation, 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.