2009 California Government Code - Section 57450-57463 :: Chapter 6. Effect Of Dissolution

57450.  On and after the effective date of the dissolution of a
district, the district shall be dissolved, disincorporated, and
extinguished, its existence shall be terminated, and all of its
corporate powers shall cease, except as the commission may otherwise
provide pursuant to Section 56886 or for the purpose of winding up
the affairs of the district and as otherwise provided in this
chapter. The general provisions of this chapter shall not be
construed as limiting in any manner the authority of the commission
to impose one or more of the terms and conditions set forth in
Section 56886.

57451.  For the purpose of winding up the affairs of a dissolved
district, the successor of the dissolved district shall be determined
as follows:
   (a) If the territory of a dissolved district is located entirely
within the incorporated territory of a single city, the city is the
successor.
   (b) If the territory of a dissolved district is located entirely
within the unincorporated territory of a single county, the county is
the successor.
   (c) If the territory of a dissolved district is located within the
incorporated territory of more than one city or the unincorporated
territory of more than one county, or any combination of the
incorporated or unincorporated territory of two or more such cities
and counties, the successor is that city whose incorporated territory
or that county whose unincorporated territory shall, upon the
effective date of dissolution, contain the greater assessed value of
all taxable property within the territory of the dissolved district,
as shown on the last equalized assessment roll or rolls of the county
or counties.
   (d) If the terms and conditions provide that all of the remaining
assets of a dissolved district shall be distributed to a single
existing district, the single existing district is the successor.
   (e) If the terms and conditions provide that all of the remaining
assets of a dissolved district shall be distributed to two or more
existing districts, the successor is that existing district which,
upon the effective date of dissolution, contains the greater assessed
value of all taxable property within the territory of the dissolved
district, as shown on the last equalized assessment roll or rolls of
the county or counties.

57452.  Upon the effective date of dissolution control over all of
the moneys or funds, including cash on hand and moneys due but
uncollected, and all property, real or personal, of the dissolved
district is vested in the successor for the purpose of winding up the
affairs of the district.

57453.  For the sole and exclusive purpose of winding up the affairs
of the dissolved district, the successor and the officers and
legislative body of the successor have the same powers and duties as
the dissolved district and the officers and legislative body of the
dissolved district and all of the following additional powers and
duties:
   (a) To exchange, sell, or otherwise dispose of all property, real
and personal, of the dissolved district.
   (b) To compromise and settle claims of every kind and nature.
   (c) To sue or be sued in the same manner and to the same extent as
the dissolved district and the officers and legislative body of the
dissolved district.
   These powers and duties shall commence upon the effective date of
dissolution and shall continue thereafter until the time when the
affairs of the dissolved district have been completely wound up.

57454.  No inhabitant, property owner, taxpayer, consumer, or user
within the territory of a dissolved district shall be entitled to
either of the following:
   (a) All or any part, or to any payment on account of the moneys or
funds, including cash on hand and moneys due but uncollected, or any
property, real or personal, of the dissolved district.
   (b) Any refund by reason of any taxes, assessments, service
charges, rentals, or rates collected prior to the effective date of
dissolution.

57455.  Any moneys and funds of the dissolved district and any
moneys or funds received by the successor from the sale or other
disposition of any property, real or personal, of the dissolved
district shall be used to the extent necessary, for the payment of
principal, interest and any other amounts then or thereafter due on
account of any outstanding bonds, including revenue bonds, and other
contracts or obligations of the dissolved district.

57456.  (a) When the successor determines that payment, or provision
for payment, has been made of all short-term obligations of the
dissolved district, the successor shall distribute any of the
remaining assets of the dissolved district in the manner provided in
Section 57457.
   (b) "Short-term obligations," as used in subdivision (a), includes
all amounts which shall be due and payable, prior to the end of the
fiscal year commencing next after the effective date of dissolution,
upon any outstanding bonds, including revenue bonds, and other
contracts or obligations of the dissolved district. All other
obligations shall be long-term obligations.

57457.  Remaining assets of the dissolved district shall be
distributed by the successor as follows:
   (a) If the territory of the dissolved district is located entirely
within the incorporated territory of a single city, all of the
assets shall be distributed to that city.
   (b) If the territory of the dissolved district is located entirely
within the unincorporated territory of a single county, all the
assets of the dissolved district shall be distributed to that county.
   (c) If the territory of a dissolved district is located within the
incorporated territory of more than one city, or the unincorporated
territory of more than one county, or any combination of the
incorporated or unincorporated territory of two or more such cities
and counties, the assets of the dissolved district shall be
apportioned between all such cities and counties and distributed as
follows:
   (1) All real property located within the incorporated territory of
any city or within the unincorporated territory of any county, as
the case may be, shall be distributed to that city or county.
   (2) All moneys or funds including cash on hand and money due but
uncollected and all personal property shall be divided among and
distributed to each city or county in the proportion that the
assessed value of the taxable property of the dissolved district
within the incorporated territory of each city or within the
unincorporated territory of each county shall bear to the total
assessed value of all taxable property within the dissolved district,
the assessed values being those shown upon the last equalized
assessment roll or rolls of the county or counties upon the effective
date of the dissolution.

57458.  Until payment, or provision for payment, has been made of
all principal, interest, and any other amounts owing on account of
any outstanding long-term obligations, which are payable in whole or
in part from taxes or assessments upon any property within all or any
part of the territory of a dissolved district, the legislative body
of the successor shall in each year provide for the levy and
collection of taxes or assessments upon the property sufficient to
pay any principal, interest, and any other amounts owing on account
of such obligations, as they become due. Those taxes or assessments
shall be levied and collected in the manner provided by the principal
act of the dissolved district.

57459.  Until payment, or provision for payment, has been made of
all principal, interest, and any other amounts owing on account of
any outstanding bonds, contracts, or other obligations which are
payable in whole or in part from the revenues of a revenue-producing
enterprise of the dissolved district, the successor shall not do
either of the following:
   (a) Sell, encumber, or otherwise dispose of all or any part of the
revenue-producing enterprise or the revenues derived from that
enterprise, except as expressly authorized by the ordinance,
resolution, or indenture authorizing or providing for the issuance of
any of the bonds, contracts, or other obligations.
   (b) Distribute less than the whole of the revenue-producing
enterprise to any city or county.

57460.  If at the time of distribution more than one city or county
or any combination of cities or counties are entitled to distribution
of portions of a revenue-producing enterprise but the successor is
unable to distribute the same because of Section 57459, the successor
shall retain the revenue-producing enterprise and all revenues
derived from that enterprise until payment, or provision for payment,
has been made of all principal, interest, and any other amounts
owing on account of outstanding bonds, contracts, or other
obligations which are payable in whole or in part from the revenues
of the enterprise, at which time the successor shall distribute the
enterprise and any revenues derived therefrom in accordance with
Section 57457.

57461.  Where any bonds, contracts, or other obligations which are
payable in whole or in part from the revenues of a revenue-producing
enterprise are outstanding upon the effective date of dissolution,
the successor, prior to distribution, or any city or county, after
distribution, shall succeed to all rights and liabilities of the
dissolved district under any ordinance, resolution, or indenture
authorizing the bonds, contracts, or other obligations or providing
for the issuance of the bonds, contracts, or other obligations and
may sue or be sued upon those rights and liability in the same manner
and to the same extent as the dissolved district.

57462.  Any funds, money, or property of a dissolved district which
have been impressed with any public trust, use, or purpose shall
continue to be so impressed until that public trust, use, or purpose
is vacated, abandoned, or terminated, in the manner provided by law.

57463.  Subject to the provisions of Section 57462, any funds,
money, or property of a dissolved district may be used by the
successor for the purpose of winding up the affairs of the district
and, after distribution to any city, county, or district may be used
for any lawful purpose of the city, county, or district to which the
funds, money, or property have been distributed. So far as may be
practicable, the funds, money, or property shall be used for the
benefit of the lands, inhabitants, and taxpayers within the territory
of the dissolved district.