Special District Local Laws Code § 1091.305

Sec. 1091.305. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) Notwithstanding any other provision of this subchapter, 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 or liabilities may not: (1) contravene a trust indenture or bond resolution relating to the district's outstanding bonds; or (2) diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation 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 district citizens, including the citizens' collective property rights in the district's assets. (d) The district may transfer or sell the district's assets only for due compensation, unless the transfer is made to another governmental agency embracing the district and using the transferred assets 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 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.