(1) A district shall be considered dissolved:

(a) Where, within two (2) years after its creation, it has not become the owner or operator, or commenced construction, of a public utility. Any time consumed in any proceeding or contest before any judicial or other tribunal shall not be included as part of said two-year period.

(b) Where a district has disposed of all of its utility property and for one (1) year thereafter shall not have owned or operated a public utility.

(c) Where the board has by resolution determined that the continued existence of the district is not in the public interest, and shall have made an order to such effect and filed a certified copy of such order with the secretary of state. However, no district shall be dissolved under this subsection until after an election held in the manner set forth in this article to be called and held by the respective county boards of election commissioners upon the request of the board, except that in lieu of the question prescribed by section 77-5-113 for inclusion on the ballot there shall appear thereon the following: “Shall the ‘(giving the name thereof) power district’ be dissolved?

( )Yes ( ) No”

A majority of those voting in the entire district shall govern.

(2) Any district dissolved in accordance with the provisions of this section shall cease to continue as a body corporate for the purpose of doing business but shall continue as such for such period as may be necessary to settle the business of the district, wind up its affairs, dispose of its assets and settle its obligations, and for no other purpose. Under such circumstances the board shall have the powers of receivers in equity to determine what is in the best interest of creditors and users of the service of the district. In the event of dissolution the assets of the district and the proceeds thereof shall be used first to pay the expenses of settling the affairs of the district, then for the payment of creditors in the order of their priority, and any surplus remaining shall become the property of the State of Mississippi.