If at the time a city becomes a town under the provisions of this chapter there are
any pending actions or proceedings by or against the city, or if after a city becomes
a town under the provisions of this chapter an action or proceeding out of a cause
of action which arose prior to the time the city became a town, which but for said
transition would have been by or against the city, is instituted, the resulting town
shall be substituted in place of the city and the action or proceeding may be perfected
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