Maryland Code, Agriculture § 8-404

(a) When the Secretary of State has examined, received, filed, and recorded the application, in the book for the recording of applications for the organization of districts, the old districts shall cease to exist, and the resulting districts shall constitute political subdivisions of the State and public bodies corporate and politic. The Secretary of State shall issue to the supervisors of each resulting district, under the seal of the State, a certificate of constitution by division or combination, or both, of any district, and shall record the certificate with the application and statement.

(b) Upon the issuance of the certificate of constitution, every ordinance and rule or regulation previously adopted and in force within the former districts has no further force and effect. Any contract, to which the former district or its supervisors are parties, is effective for the period provided in the contract. The Committee shall be substituted for the district or supervisors as a party to the contract. The Committee is entitled to every benefit and subject to every liability under the contract and has the same right and liability to perform, to require performance, to sue and be sued, and to modify or terminate any contract by mutual consent or otherwise, as the supervisors of the former district.

(c) The Committee may designate and direct any new district to act as its agent to carry out any contract or duty, enforce any right, or perform any other work which accrues to it under this section on account of the division or combination, or both, of an old district.

(d) Any district constituted by division or combination, or both, and its supervisors have the same powers and are subject to the same restrictions as any district continued in accordance with § 8-301 of this title and its supervisors.