Section 89. Payment of debts of illegal corporations

Whenever an attempt
  has been or is hereafter made to create a municipal corporation,  either
  by  special  act  of  the  legislature or by proceedings taken under the
  general laws of the state, and such corporation has chosen officers  and
  has  exercised  the powers, duties and authority vested in it by the law
  under which it purports to have been created, and such  corporation  has
  become  indebted  to  any  person,  association  or  corporation  in the
  aggregate amount of five hundred dollars or more, and  such  corporation
  shall  have  been  held  or  declared to be no corporation by a court of
  record of competent jurisdiction  of  this  state,  either  because  the
  special   act  creating  it  is  declared  to  be  unconstitutional,  or
  otherwise, then such corporation shall be deemed a de facto  corporation
  for  the  purpose of winding up its affairs and paying its indebtedness;
  and its officers shall be deemed de facto officers and  shall  have  all
  the  powers and authority and shall perform all the functions and duties
  vested in or required of them under  the  law  pursuant  to  which  such
  corporation  was  attempted to be created, so far as may be necessary to
  liquidate  the  affairs  of  such  corporation  and  to  pay  its  money
  obligations,  including  all the power and authority to assess, levy and
  collect taxes upon the taxable persons and property within the corporate
  limits of such illegal corporation,  to  such  an  amount  as  shall  be
  sufficient  to  pay  obligations  of  such  corporation  and the expense
  incident thereto.
    2. Such de facto officers shall keep an accurate record of  all  their
  proceedings  hereunder, including the amount of money raised by taxation
  and the purpose for which it was raised and the  amount  of  money  paid
  out,  to  whom  and  for what purpose. They shall audit all bills before
  payment and shall take receipts for all moneys paid out.
    3. When all the indebtedness of such illegal corporation has been paid
  and its obligations discharged, such de  facto  officers  shall  make  a
  full,  complete  and accurate report, under oath, to the county judge of
  the county in which such illegal corporation is located or to a  justice
  of the supreme court of all their proceedings hereunder and on the order
  of  such  judge or justice approving and confirming such report, such de
  facto officers shall be discharged and their functions and duties  shall
  cease.  Such report and order shall be filed in the office of the county
  clerk of the county in which such illegal corporation was located.