Mississippi § 37-7-505 - Assumption of liability for bonds by district acquiring property of dissolved district purchased with proceeds of bonds generally.

§ 37-7-505. Assumption of liability for bonds by district acquiring property of dissolved district purchased with proceeds of bonds generally.

When any school district now existing or hereafter created shall be dissolved, abolished or discontinued, either as the result of the consolidation, reorganization or reconstitution of school districts under the provisions of Article 1 of this chapter, or otherwise, and such school district shall, at the time of the dissolution or discontinuance thereof, have outstanding bonds or other indebtedness, the territory formerly composing and comprising such dissolved school district shall remain liable for such bonds or other indebtedness, and the board of supervisors of the county shall continue to levy taxes upon such territory until such bonds or other indebtedness shall be fully paid according to the terms thereof. However, in the event a school building or other school facilities shall have been acquired, erected, equipped, repaired or remodeled with the proceeds of any such bonds or other indebtedness outstanding, and such school building or other school facility shall be utilized by the school district to which all or any part of the territory of the dissolved district is annexed, and shall be approved as an attendance center by the school board, and the State Board of Education, then the school district so utilizing such school building or other school facility shall become liable for and assume the payment of such outstanding bonds or other indebtedness, or such portion thereof as was used in the acquisition, erection, equipping, repairing or remodeling of the school building or other school facility involved. Taxes shall be levied upon all of the taxable property of the school district so utilizing such school building or other school facility to pay the balance of the principal and interest upon such outstanding bonds or other indebtedness in the same manner as if such bonds had originally been issued or such indebtedness originally incurred by such district, and, in such case, the title to the school building or other school facility and the land upon which it is located shall be vested in the school district so utilizing same. Nothing herein shall be construed, however, to affect adversely the rights of the holders of any such outstanding bonds or other indebtedness, and no school district shall be required to assume liability for the payment of any bonds or other indebtedness incurred by a former school district unless the school building or other school facility acquired, erected, equipped, repaired or remodeled with the proceeds of such bonds or other indebtedness shall be utilized by such school district, with the approval of the school board, and the State Board of Education, as a part of the long range school program of such district. In the event the outstanding bonds or other indebtedness of a dissolved school district are assumed by another school district as provided in this section, then the remaining property, assets and funds of the dissolved district which do not become the property of the school district assuming such indebtedness shall be disposed of in the manner provided in Section 37-7-501.