(2) The union high school board shall continue as the board of the district. If the board is increased to seven members as part of the vote to lengthen the course of study or the merger proposal, the board shall appoint the two additional members in the manner prescribed for filling vacancies under ORS 332.030 (4), except that the board shall establish by lot the terms of office of the appointed members at less than an initial four-year term.

(3) The terms of all board members in all component school districts other than split school districts shall terminate at the time the union high school board becomes the district school board.

(4) All property and obligations of the component school districts other than split school districts shall become the property and obligations of the new common school district except to the extent that it was otherwise provided when such district is formed by merger.

(5) Whenever at the time a new common school district is formed as provided in subsection (1) of this section, if any component school district is a split school district, such district shall continue to exist and shall become responsible for education in kindergarten and grades 1 through 12 for students resident in the split district.

(6) No school district employee shall be deprived of seniority or accumulated sick leave solely because the duties of the employee have been assumed or acquired by another school district as a result of lengthening the course of study.

(7) As used in this section, "property and obligations" includes all contractual obligations, employment and service contracts, collective bargaining agreements and district assets and liabilities. [Amended by 1965 c.100 §220; 1967 c.106 §3; 1975 c.770 §46; 1983 c.350 §192; 1987 c.195 §1; 1993 c.45 §71; 1993 c.329 §8; 1995 c.258 §9]