Section 787. Winding down the affairs of a dissolved local government entity

1. Upon the successful  completion  of  dissolution  proceedings  pursuant  to  this  title,  the  governing  body of the dissolving local
  government entity shall wind down the affairs thereof,  dispose  of  its
  property  as  provided  by  law,  make provisions for the payment of all
  indebtedness thereof and  for  the  performance  of  its  contracts  and
  obligations,  and,  if  applicable and appropriate under law, levy taxes
  and assessments as necessary to accomplish the dissolution.
    2. In furtherance of its duty to wind down the affairs  of  the  local
  government entity, the governing body shall cause notice to be given, in
  the  same  manner  as notice for a proposed dissolution plan pursuant to
  section seven hundred seventy-five of this title, requiring  all  claims
  against  the  dissolving  local  government entity, excluding any of its
  outstanding securities, to be filed within a time fixed in  the  notice,
  but  not  less than three months or more than six months, and all claims
  not so filed shall be forever barred. At the expiration of such time the
  governing body shall adjudicate claims so filed, and any resident of the
  entity at the time of the effective date of the dissolution  may  appear
  and  defend against any claim so filed, or the governing body may in its
  discretion appoint some person for that purpose.
    * NB Effective March 21, 2010