Notwithstanding any of the provisions of Sections 37-7-501 through 37-7-511, any school district to which all or a part of the territory of a dissolved school district is annexed may, by agreement of the school board thereof, assume the payment of all or any part of the outstanding bonds or other indebtedness of the dissolved district even though it is not mandatorily required so to do under the provisions of said sections.

In addition, no such assumption of indebtedness under the provisions of this section shall be binding and effective until the school board of the school district proposing to assume such indebtedness shall adopt a resolution declaring its intention so to do, stating the amount, the nature of the indebtedness to be assumed and the date upon which such board proposes to take final action assuming such indebtedness. Such resolution shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper published or having a general circulation in the school district proposing to assume such indebtedness. The first publication of such resolution shall be made not less than twenty-one (21) days prior to the date specified in such resolution for final action, and the last publication shall be made not more than seven (7) days prior to such date. If twenty percent (20%) of the qualified electors of the school district proposing to assume such indebtedness shall file a written protest against such assumption of indebtedness on or before the date specified in such resolution, then an election upon the question of the assumption of such indebtedness shall be called and held in said school district in the same manner as other special elections are held therein. If no such protest be filed, then such assumption of indebtedness shall become binding and effective without an election on the question. If an election is called under the provisions of this section, notice thereof shall be given for the same time and in the same manner required for the publication of the resolution hereinabove referred to, and such election shall be held as far as practicable in the same manner as state and county elections are held. At such election all qualified electors of the school district may vote, and the ballots used thereat shall have printed thereon a brief statement of the purpose of the school board to assume such indebtedness, together with the amount thereof, and the words: “For the assumption of the indebtedness,” and “Against the assumption of the indebtedness,” and the voter shall vote by placing a cross (X) or check mark (✓) opposite his choice on the proposition. If at said election three-fifths (⅗) of the qualified electors of the school district who vote in said election vote in favor of the assumption of such indebtedness, then such indebtedness shall be assumed by the school board; otherwise, such indebtedness shall not be assumed.