1. (a) On the date a merger takes effect:

   1. (1) the former township governments are abolished as separate entities;
   2. (2) each township subject to the merger retains its geographical boundaries and its name;
   3. (3) the territory of the new township government includes all the territory that comprised the territories of the former township governments before the merger;
   4. (4) the agencies of the former township governments are abolished;
   5. (5) the functions of the abolished agencies are assigned to agencies of the new township government;

   6. (6) the:

      1. (A) property;
      2. (B) records;
      3. (C) personnel;
      4. (D) rights; and

      5. (E) liabilities;

         related to the functions of the abolished agencies are assigned to agencies of the new township government; and

   7. (7) Subject to subsection (b), any bonds and other indebtedness of, or assumed by, the former township governments are transferred to the new township government.

2. (b) This subsection applies to a merger under IC 36-6-1.7 . Indebtedness that was incurred by each former township government prior to the merger under IC 36-6-1.7 :

   1. (1) may not be imposed on taxpayers that were not responsible for payment of the indebtedness before the merger; and
   2. (2) must be paid by the taxpayers that were responsible for payment of the indebtedness before the merger.

As added by P.L.240-2005, SEC.3. Amended by P.L.134-2026, SEC.6.