Special District Local Laws Code § 1023.306

Sec. 1023.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) The district may not be dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another person. (b) The dissolution of the district and the sale or transfer of the district's assets and liabilities may not: (1) contravene a trust indenture or bond resolution relating to the outstanding bonds of the district; or (2) diminish or impair the rights of the holders of any outstanding bonds, warrants, or other obligations of the district. (c) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of citizens in the district, including the citizens' collective property rights in the district's assets. (d) The district may not transfer or dispose of the district's assets except for due compensation unless: (1) the transfer is made to another governmental agency embracing the district; and (2) the transferred assets are used for the benefit of the citizens formerly in the district. (e) A grant from federal funds is an obligation to be repaid in satisfaction. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.