Sec. 863.

(1) If a school district becoming part of a consolidated school district has bonded indebtedness, or has outstanding tax anticipation notes at the time of consolidation, the identity of the district shall not be lost by virtue of the consolidation. Territory of the original school district shall remain as an assessing unit for purposes of bonded indebtedness and tax anticipation notes until the indebtedness is retired or the outstanding bonds are refunded by the consolidated school district. If a consolidated school district has not assumed the bonded indebtedness of an original school district, the bonded indebtedness of the original school district may be refunded by the consolidated school district on behalf of the original school district, and the territory of the original school district shall remain as an assessing unit for the purposes of the refunding bonds until the refunding funds are retired or are assumed by the consolidated school district. The board of the consolidated school district shall constitute the board of trustees for the original school district having bonded indebtedness or tax anticipation notes. The officers of the consolidated school district shall be the officers for the original school district for this purpose.

(2) The board of the consolidated school district shall certify and order the levy of taxes for the bonded indebtedness and tax anticipation notes in the name of the original school district and shall not commingle the debt retirement funds of the original school district with funds of the consolidated school district. The board of the consolidated school district shall do all things relative to the bonded indebtedness and tax anticipation notes required by law and by the terms under which the issue and sale of the bonds and tax anticipation notes were originally authorized.

(3) Other taxes of any nature for purposes of the consolidated school district shall be spread uniformly over the entire area of the consolidated school district.

History: 1976, Act 451, Imd. Eff. Jan. 13, 1977 ;-- Am. 2015, Act 164, Imd. Eff. Oct. 28, 2015 Popular Name: Act 451