North Dakota Century Code Title 61. Waters § 61-35-25. Alternate operation by nonprofit corporation or cooperative

1. After final approval of the petition by the state engineer, the secretary of the corporation or cooperative shall file a notice with the secretary of state or attorney general, if applicable, in accordance with title 10.

2. Upon filing of the notice, the nonprofit corporation or cooperative ceases to exist as a title 10 entity and all assets and liabilities of the nonprofit corporation or cooperative become the assets and liabilities of the newly organized district without any further meetings, voting, notice to creditors, or other actions by the members of the board.

3. The officers and board of directors of the corporation or cooperative are the officers and board of the district.

4. The applicable laws of the state and the articles of incorporation and bylaws of the corporation or cooperative control the initial size and initial term of office of officers and the board, in lieu of sections 61-35-08 through 61-35-11.

5. The district shall bring its operation and structure into compliance with the requirements of section 61-35-08 regarding the number and qualification of directors, section 61-35-09 regarding new bylaws, section 61-35-10 regarding dividing its directors into classes, and section 61-35-11 regarding board meetings at the first annual meeting of the participating members and board.  The new district has all the rights and all the property of the original corporation or cooperative and is responsible for all its obligations.  Title to any property is vested in the new district with no reversion or impairment of ownership rights caused by the conversion to a district.  A water supply agreement entered by a nonprofit corporation or cooperative association is binding for its term on a successor district organized by the nonprofit corporation or cooperative association, unless otherwise agreed in writing by all parties to the agreement.  The right of any creditor may not be impaired by this section without the creditor's consent.