45-2205. Dissolution of authority

A. The authority may be dissolved only by a unanimous vote of the directors who are appointed by authority members pursuant to section 45-2221, subsection B and only if all contractual obligations and debts of the authority are satisfied and another governmental entity or entities accept dedication of all authority projects.

B. After unanimously voting to dissolve the authority as provided in subsection A of this section, the directors who are appointed by authority members pursuant to section 45-2221, subsection B shall adopt by resolution a plan of termination to be executed within a stated period of time after it is adopted. The plan of termination is judicially enforceable and shall contain the following provisions:

1. Except as provided in paragraph 2 of this subsection, all rights to the delivery of water that were transferred to the authority in connection with the formation of the authority shall be returned to the municipal corporation that transferred these rights, subject to approval of the secretary of the interior in consultation with the director.

2. If, before the dissolution of the authority, an authority member has either paid to the authority all of its pro rata share of the amount prescribed by section 45-2281, subsection C, as prescribed in its subcontract with the authority or has entered into a contract to pay that amount to the entity entitled to the payment of that amount, the authority member retains the right to the delivery of Colorado river water for which the member's payment was made and the right to the delivery of Colorado river water shall not be returned as provided in paragraph 1 of this subsection.

C. All property of the authority that is not dedicated to another governmental entity shall be transferred to the department for use in the county in which the authority is formed. All monies of the authority deposited in the grant fund as of the date of dissolution of the authority shall be disbursed as provided in section 45-2281. All other unexpended and unencumbered monies of the authority shall be disbursed among authority members as provided in a resolution of the board.