2010 California Code
Government Code
Chapter 9. Mergers And The Establishment Of Subsidiary Districts

57525.  On and after the effective date of a merger of a district of
limited powers with a city, the district is extinguished,
terminated, and its existence ceases, except as otherwise provided in
this chapter.


57526.  Upon the effective date of a merger, all of the moneys or
funds, including cash on hand and moneys due but uncollected and all
property, real or personal, of the merged district is vested in the
city.


57527.  No inhabitant, property owner, taxpayer, consumer, or user
within the territory of a merged 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, and
any property, real or personal, of the merged district.
   (b) Any refund by reason of any taxes, assessments, service
charges, rentals, or rates collected prior to the effective date of
merger.



57528.  Any moneys and funds of the merged district and any moneys
or funds received by the city from the sale or other disposition of
any property, real or personal, of the merged 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 and
obligations of the merged district.



57529.  Until payment, or provision for payment, has been made of
all principal, interest, and any other amounts owing on account of
any outstanding 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 merged district, the city council shall in each
year provide for the levy and collection of taxes and 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 and assessments shall be levied and collected in the
manner provided by the principal act of the merged district.



57530.  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 merged district, the city shall not sell, encumber,
or otherwise dispose of all or any part of the revenue-producing
enterprise or the revenues derived from the enterprise, except as
expressly authorized by the ordinance, resolution, or indenture
authorizing the bonds, contracts, or other obligations or providing
for the issuance of any bonds, contracts, or other obligations.




57531.  Where any bonds, including revenue bonds, contracts, or
other obligations of the merged district are outstanding upon the
effective date of merger, the city succeeds to all of the rights and
liabilities of the merged district under any ordinance, resolution,
indenture, contract, or other obligation or providing for or
authorizing the issuance of any bonds, contracts, or other
obligations and may sue and be sued upon those rights and liabilities
in the same manner and to the same extent as the merged district.



57532.  Any funds, money, or property of a merged district which
have been impressed with any public trust, use, or purpose shall
continue to be so impressed until the public trust, use, or purpose
is vacated, abandoned, or terminated, in the manner provided by law.




57533.  Subject to Section 57532, any funds, money, or property of a
merged district may be used for any lawful purpose of the city. So
far as may be practicable, as determined by the city council, any of
these funds, money, or property shall be used for the benefit of the
lands, inhabitants, and taxpayers within the territory of the merged
district.



57534.  On and after the effective date of an order establishing a
district of limited powers as a subsidiary district of a city, the
city council shall be designated as, and empowered to act as, ex
officio the board of directors of the district. The district shall
continue in existence with all of the powers, rights, duties,
obligations, and functions provided for by the principal act, except
for any provisions relating to the selection or removal of the
members of the board of directors of the district.



57535.  If any court determines that any incompatibility exists by
reason of the same person or persons holding office both as a member
of the city council and as a member of the board of directors of a
subsidiary district, the court shall order the vacation of the office
of that person as a member of the board of directors, but not as a
member of the city council, and shall order the membership of the
board of directors to be selected in the manner provided by the
principal act.