49-40-1
Conditions under which assets may be transferred or encumbered.
49-40-2
Hypothecation of assets permitted.
49-40-3
Sale of consumers power district assets.
49-40-3.1
Sale of assets--Retroactive application.
49-40-4
Right of municipality to purchase portion of assets within boundaries.
49-40-5
Inability to agree with municipality on price--Court determination--Basis of
determination.
49-40-6
Allocation of bonded indebtedness as between municipality and other transferee--Terms of court award.
49-40-7
Repealed.
49-40-8
Lease or alienation of facilities within municipality.
49-40-9
Petition for dissolution of district--Conditions under which dissolution may be
permitted--Notice of dissolution--Contents of notice--Expenses of dissolution.
49-40-10
Court hearing and investigation respecting dissolution--Filing order of dissolution
with clerk of courts and secretary of state.
49-40-1. Conditions under which assets may be transferred or encumbered.
No power plant or system owned by a consumers power district shall be sold, alienated or mortgaged by such district, except under the circumstances set forth in this chapter.
Source: SL 1950 (SS), ch 17, § 59; SDC Supp 1960, § 52.1758.
49-40-2. Hypothecation of assets permitted.
If, in order to borrow money, it shall become necessary that a consumers power district mortgage, or otherwise hypothecate, any of its said property or assets to secure the payment of a loan or loans made to it, such district is hereby authorized and empowered to do so.
Source: SL 1950 (SS), ch 17, § 59; SDC Supp 1960, § 52.1758; SL 1975, ch 288.
49-40-3. Sale of consumers power district assets.
Any consumers power district may sell any power plant, electric generating plant, electric transmission, or distribution system, or any part thereof, for any sum and upon any terms that the board of directors of the district may consider fair and reasonable.
Source: SL 1950 (SS), ch 17, § 64; SDC Supp 1960, § 52.1763; SL 1983, ch 347, § 1; SL 2017, ch 198, § 1.
49-40-3.1. Sale of assets--Retroactive application.
Section 49-40-3 is retroactive and is effective as to any resolution or agreement adopted by any consumers power district.
Source: SL 1983, ch 347, § 2.
49-40-4. Right of municipality to purchase portion of assets within boundaries.
Whenever any consumers district shall, as provided in chapters 49-35 to 49-40, inclusive, acquire, by purchase, lease or otherwise, any electric distribution system, or any part or parts thereof, situated within or partly within any municipality, if any part of such system be within such municipality, such acquisition shall be upon the condition that such municipality may purchase, and such district shall be required to sell to such municipality such electric distribution system, situated within or partly within such municipality, but not within the corporate limits of any other municipality, by paying to such district such sum as is fair and reasonable, including reasonable severance damages.
Source: SL 1950 (SS), ch 17, § 65; SDC Supp 1960, § 52.1764.
49-40-5. Inability to agree with municipality on price--Court determination--Basis of determination.
If any municipality and consumers power district shall fail to agree upon a price and terms for the sale of property to such municipality pursuant to § 49-40-4 the procedure for determining such price and terms of sale, and for compelling such sale shall be the same as is provided by chapter 21-35. In determining the amount of severance damages, the court shall take into account, together with other relevant factors, the economic effect, if any, caused by the severance therefrom of the part taken upon the system as a going concern as it will be and remain after the severance.
Source: SL 1950 (SS), ch 17, § 65; SDC Supp 1960, § 52.1764.
49-40-6. Allocation of bonded indebtedness as between municipality and other transferee--Terms of court award.
When the sum that is fair and reasonable shall have been determined as provided in § 49-40-5, the court shall deduct therefrom and allow as a credit upon such sum an amount that bears the same proportion to such sum as the amount of the bonds that have been paid, redeemed or liquidated, and the reserves established therefor by said district, out of the earnings from the operation of the district while such municipality was within and a part of such district, bears to the total amount of the bonded indebtedness of such district issued to finance the purchase price and the cost of construction of the entire property of such district. In entering its award the court shall show how much of the total thereof was allowed for the physical property taken and how much was allowed for other values and damages, if any.
Source: SL 1950 (SS), ch 17, § 65; SDC Supp 1960, § 52.1764.
49-40-8. Lease or alienation of facilities within municipality.
If a consumers power district is comprised of territory wholly within the corporate limits of a first or second class municipality then the district shall have power to lease or alienate the franchises, plant or physical equipment of the district to any private person, firm, association or corporation in accordance with the provisions of §§ 9-39-37 and 9-39-38.
Source: SL 1950 (SS), ch 17, § 69; SDC Supp 1960, § 52.1768; SL 1992, ch 60, § 2; SL 2017, ch 198, § 3.
49-40-9. Petition for dissolution of district--Conditions under which dissolution may be permitted--Notice of dissolution--Contents of notice--Expenses of dissolution.
Whenever a petition signed by a majority of the members of the board of directors or by twenty-five or more qualified voters of the state residing within the territorial boundaries of any district organized under and by virtue of chapter 49-35, shall be presented to the circuit court for the county where the principal place of business of the district is located, praying for the dissolution of such district, and it shall appear from the petition that such district has no property of any kind, owes no debts of any kind, that the district is not functioning, has ceased to function, and probably will not function in the future, the court shall forthwith publish a notice for two successive weeks in a legal newspaper of general circulation published in the district, or, if no legal newspaper is published in the district, then in any legal newspaper having general circulation therein, setting forth, in substance and in a clear and concise manner, the nature and prayer of the petition, and setting a time and place for a public hearing by the court upon the petition. The persons filing such petition for dissolution shall advance and pay the necessary expenses incurred.
Source: SL 1950 (SS), ch 17, § 77; SDC Supp 1960, § 52.1776.
49-40-10. Court hearing and investigation respecting dissolution--Filing order of dissolution with clerk of courts and secretary of state.
After such hearing and such independent investigation as may be deemed advisable, the court shall grant or reject the prayer of a petition filed pursuant to § 49-40-9, and, if the prayer of the petition is granted, the court shall thereupon issue its order declaring the district dissolved and terminated. The order of court shall thereupon be filed in the office of the clerk of courts of the county in which the petition for dissolution is filed, and a certified copy of such order shall immediately be filed in the Office of the Secretary of State, and a certified copy shall be filed in the office of the clerk of courts of each county into which any part of the district may extend. The district shall thereupon be dissolved, and cease to exist.
Source: SL 1950 (SS), ch 17, § 77; SDC Supp 1960, § 52.1776.
