Section 57531 Of Chapter 9. Mergers And The Establishment Of Subsidiary Districts From California Government Code >> Division 3. >> Title 5. >> Part 5. >> Chapter 9.

. Where any bonds, including revenue bonds, contracts, or other obligations of the merged district are outstanding upon the effective date of merger, the city succeeds to all of the rights and liabilities of the merged district under any ordinance, resolution, indenture, contract, or other obligation or providing for or authorizing the issuance of any bonds, contracts, or other obligations and may sue and be sued upon those rights and liabilities in the same manner and to the same extent as the merged district.