Section 768. Debts, liabilities and obligations

1. All valid and lawful
  debts and liabilities existing against a consolidated  local  government
  entity, or which may thereafter arise or accrue against the consolidated
  local  government entity, which but for consolidation would be valid and
  lawful debts or liabilities against one or more of the  component  local
  government  entities, shall be deemed and taken to be like debts against
  or liabilities of the consolidated local  government  entity  and  shall
  accordingly be defrayed and answered to by it to the same extent, and no
  further  than,  the  component local government entities would have been
  bound if no consolidation had taken place.
    2. The rights of creditors and all liens upon the property of  any  of
  the  component  local  government  entities  of a consolidation shall be
  preserved unimpaired. The respective component entities shall be  deemed
  to  continue  in  existence  to  preserve such rights and liens, and all
  debts, liabilities and duties of any of  the  component  entities  shall
  thenceforth  attach  to  the consolidated local government entity and be
  enforced against it to the same extent as if such debts, liabilities and
  duties had  been  incurred  or  contracted  by  the  consolidated  local
  government entity.
    3.  All  bonds,  contracts  and  obligations of the component entities
  which exist as legal obligations shall be deemed like obligations of the
  consolidated local government entity, and all such  obligations  as  are
  authorized  or  required to be issued or entered into shall be issued or
  entered into by and in the name of  the  consolidated  local  government
  entity.
    * NB Effective March 21, 2010