9-226

9-226. Effect of dissolution on existing
rights

A. The dissolution of a corporation shall not invalidate or affect any right,
penalty or forfeiture accruing to the corporation, nor invalidate or affect any contract
entered into or imposed upon the corporation, but all the contracted indebtedness and
obligations shall remain unimpaired by reason of the disincorporation of the corporation,
and the board of trustees of the municipality succeeding the disincorporated city or town
shall provide for the payment and discharge in good faith of all the indebtedness and
obligations according to the tenor of the contract or obligation by which they were
contracted or the indebtedness incurred, and for the collection of any indebtedness due
the corporation.

B. Nothing in this section shall be construed as compelling recognition of
contracts made by the mayor or common council subsequent to the petition for
disincorporation made to the board of supervisors, as provided by this article, and prior
to a vote being taken thereon.