§ 14-218-119 - Vesting of title in consolidated district -- Liability of separate districts. - Arkansas Statutes

14-218-119. Vesting of title in consolidated district -- Liability of separate districts.

(a) As soon as the ordinance levying the assessment is passed, the title to the water system and plant, the title to the electric light system and plant theretofore acquired or constructed by separate water and light districts in the city, and the title to all other property of every kind and wherever situate owned by the separate districts shall vest in the consolidated district.

(b) The consolidated district shall be and become liable for all legal debts contracted by either of the separate districts and shall be obligated to pay them as they fall due.

(c) (1) All valid mortgages, pledges, or liens made or given by the separate districts shall continue and remain in full force and effect until the debts which they secure have been paid and discharged.

(2) The separate districts shall remain severally liable, so far as their creditors are concerned, for all debts contracted by them until the debts shall have been discharged.

(d) As to the creditors of the separate districts, nothing in this chapter shall affect any uncollected assessments of the separate districts or the lien thereof until the respective debts of the districts have been paid in full.

(e) After the passage of the ordinance levying the assessments for the consolidated district, the assessments theretofore levied by the separate districts shall cease to be a lien as between grantor and grantee of real property located in the separate district.