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HomeGovernment CodeDiv. 1Pt. 2Ch. 5Art. 4§ 51944 Debt Liability Continuation Rules

§ 51944 Debt Liability Continuation Rules

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 51944 Debt Liability Continuation Rules

Key Takeaways

  • •If cities or counties merge, old debts or lawsuits don’t disappear—they stay the same.
  • •Any ongoing lawsuits or money owed before the merge must still be handled like nothing changed.
  • •After the merge, the new city-county takes over all the old debts and lawsuits.
  • •Some special debts (like those paid by property taxes in a specific area) might still be paid the same way even after the merge.

Example

If two cities merge into one, and one city still owes money for fixing roads, the new merged city must still pay that money.

The merge doesn’t cancel old debts—the new city-county is now responsible for paying them.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 51944 Debt Liability Continuation Rules

Except as otherwise provided in the charter, reorganization does not affect any debts, demands, liabilities, or obligations of any kind existing in favor of or against the cities and the county, at the time of reorganization. Reorganization does not affect any pending action or proceeding involving any such debt, demand, liability, or obligation or any action or proceeding brought by or against any city or the county prior to reorganization. All such proceedings shall be continued and concluded, by final judgment or otherwise, as if reorganization had not been effected. All such rights or liabilities become the rights and liabilities of the city-county; provided, however, that the charter may provide for certain debts, demands, liabilities or obligations which are payable by assessments or ad valorem taxes on properties within a district or area (such as within a former district or city) to remain payable from such assessments or ad valorem taxes within such a district or area as though reorganization had not occurred. (Added by Stats. 1973, Ch. 972.)

Last verified: January 22, 2026

Key Terms

reorganizationjudgmentobligationliabilityproperty

Related Statutes

  • § 51945 City-County Debt Taxation
  • § 6516.3 Joint Powers Agency Bonds
  • § 6516.6 Joint Agency Bond Financing
  • § 66540.46 Bond Anticipation Notes Authority
  • § 66540.48 Bondholder Contract Enforcement

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 51944.
View Official Source