Nebraska Statutes 18-2439. Agency; dissolution; withdrawal of municipality; outstanding bonds, how treated; assets, how distributed; municipality; expelled or suspended; participation terminated or suspended; fair and reasonable procedure; notice; li…
(1) An agency shall be dissolved upon the adoption, by the governing bodies of at least half of the participating municipalities, of an ordinance or resolution setting forth the determination that the need for such municipality to act cooperatively through an agency no longer exists. An agency shall not be dissolved so long as the agency has bonds outstanding, unless provision for full payment of such bonds and interest thereon, by escrow or otherwise, has been made pursuant to the terms of such bonds or the ordinance, resolution, trust indenture, or security instrument securing such bonds. If the governing bodies of one or more, but less than a majority, of the participating municipalities adopt such an ordinance or resolution, such municipalities shall be permitted to withdraw from participation in the agency, but such withdrawal shall not affect the obligations of such municipality pursuant to any contracts or other agreements with such agency. Such withdrawal shall not impair the payment of any outstanding bonds or interest thereon. In the event of the dissolution of an agency, its board shall provide for the disposition, division, or distribution of the agency’s assets among the participating municipalities by such means as such board shall determine, in its sole discretion, to be fair and equitable. The board may provide in its bylaws a method by which to terminate a municipality’s participation in an agency.
Terms Used In Nebraska Statutes 18-2439
- Act: shall mean the Municipal Cooperative Financing Act. See Nebraska Statutes 18-2404
- Agency: shall mean any of the public corporations created pursuant to sections 18-2401 to 18-2485. See Nebraska Statutes 18-2405
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Board: shall mean the board of directors of an agency. See Nebraska Statutes 18-2406
- Bonds: shall mean any bonds, interim certificates, notes, debentures, or other evidences of indebtedness of an agency. See Nebraska Statutes 18-2407
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Municipality: shall mean (1) any city or village incorporated under the laws of this state, any equivalent entity incorporated under the laws of another state, or any separate municipal utility which has autonomous control and was established by such a city, village, or equivalent entity or by the citizens thereof for the purpose of providing electric energy for such municipality, (2) any public entity organized under Chapter 70, article 6, and incorporated under the laws of this state for the sole purpose of providing wholesale electric energy to a single municipality which is incorporated under the laws of this state, or (3) any agency primarily comprised of municipalities. See Nebraska Statutes 18-2410
- Participating municipality: shall mean with respect to an agency, any one of the municipalities which is entitled to appoint a director or directors of such agency pursuant to sections 18-2401 to 18-2485. See Nebraska Statutes 18-2411
- Person: shall mean a natural person, public authority, private corporation, association, firm, partnership, limited liability company, or business trust of any nature whatsoever organized and existing under the laws of this state or of the United States or any other state thereof. See Nebraska Statutes 18-2412
- Year: shall mean calendar year. See Nebraska Statutes 49-801
(2)(a) No participating municipality of an agency may be expelled or suspended, and no participation in such agency may be terminated or suspended except pursuant to a procedure that is fair and reasonable and is carried out in good faith.
(b) A procedure is fair and reasonable when either:
(i) The charter or bylaws set forth a procedure that provides:
(A) Not less than fifteen days’ prior written notice of the expulsion, suspension, or termination and the reasons therefor; and
(B) An opportunity for the participating municipality to be heard, orally or in writing, not less than five days before the effective date of the expulsion, suspension, or termination by a person or persons authorized to decide that the proposed expulsion, suspension, or termination not take place; or
(ii) A procedure takes into consideration all of the relevant facts and circumstances.
(c) Any written notice given by mail must be given by first-class or certified mail sent to the last-known address of the participating municipality shown on the agency’s records.
(d) Any proceeding challenging an expulsion, suspension, or termination, including a proceeding in which defective notice is alleged, must be commenced within one year after the effective date of the expulsion, suspension, or termination.
(e) A participating municipality that has been expelled, suspended, or terminated may be liable to the agency for dues, assessments, fees, or contractual obligations as a result of obligations incurred or commitments made prior to expulsion, suspension, or termination.