§ 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.