21-176 - Prohibition of sale or encumbrance of system.
§ 21-176. Prohibition of sale or encumbrance of system.
Neither the commission nor any of the counties, cities or towns in whole orin part embraced within the district shall have power to mortgage, pledge,encumber or otherwise dispose of any part of the sewage disposal system of acommission, except such part or parts thereof as may be no longer necessaryfor the purposes of the commission, whether the same shall originally havebeen acquired by such commission or by one of the counties, cities or towns.The provisions of this section shall be deemed to constitute a contract withthe holders of the bonds of the commission. The sewage disposal system of acommission shall be exempt from any and all liability which may be incurredby, or imposed upon, the commission, or any county, city or town, which, inwhole or in part, constitutes any part of any district.
However, a commission may sell, lease as lessor, transfer, or dispose of allor any of its property and facilities in such a manner and upon such terms asthe commission may determine to be in the best interest of the district, onthe condition that the commission meet and discharge all of the requirementsof the bonds issued by the commission, together with all principal, interest,costs and expenses.
(1938, p. 523; Michie Code 1942, § 1560vv; 1991, c. 549.)