(1) An authority, if the contract establishing it so provides, shall be the successor to any nonprofit corporation, agency, or other entity theretofore organized to provide public highways, shall be entitled to all rights and privileges, and shall assume all obligations and liabilities of such other entity under existing contracts to which such entity is a party. An authority and a county or municipality which is a member of the combination may enter into a contract by which the county or municipality assigns its liabilities and obligations, and the authority assumes such liabilities and obligations, under any contract, resolution, ordinance, or other public act which the county or municipality has entered into or adopted with respect to the financing, construction, operation, or maintenance of a public highway, including bonds which it has issued.

(2) A county or municipality that has issued bonds to finance a public highway prior to the creation of an authority and that has lent all or a portion of the proceeds of such bonds to such authority shall not take any action or fail to take any action that would limit the availability of the proceeds of such bonds to the authority or adversely affect the ability of the authority to finance the public highway unless the authority consents or unless such action or failure to act is required by the agreements with the holders of the bonds. If a county or municipality has assigned to an authority its rights and privileges regarding bonds issued to finance a public highway, such county or municipality shall take any action requested by the authority in connection with such bonds and the documents governing such bonds. A county or municipality which has assigned to an authority all of its rights and privileges regarding bonds issued by the county to finance a public highway shall not have any financial liability with respect to the repayment of such bonds except to the extent expressly provided in the bonds or the assignment. The assumption of obligations and liabilities by an authority pursuant to this section shall not be deemed to be the creation of any new debt or obligation for the purposesof the constitution or laws of the state.

(3) The provisions of subsection (2) of this section may be enforced by the authority filing an action for mandamus or injunctive relief with the district court. The district court shall enter an order within thirty days after the filing of any such action.