§ 121.10 Indebtedness of school districts merged with or annexed to a
school district outside of a city. a. In ascertaining the power of a
school district, other than a school district in a city, to issue bonds
or bond anticipation notes, there shall be included the amount of bonded
indebtedness of a merged or annexed school district as follows:

1. The amount of outstanding bonds and bond anticipation notes of
school districts which merged to form such school district, whether or
not any of such merged school districts, prior to such merger, had an
aggregate assessed valuation of one hundred thousand dollars or more,
and whether or not any of such merged school districts still exist for
the purpose of paying off its indebtedness or distributing its property.

2. The amount of outstanding bonds and bond anticipation notes of any
school district which was annexed to such school district, whether or
not such annexed school district, prior to such annexation, had an
aggregate assessed valuation of one hundred thousand dollars or more,
and whether or not such annexed school district still exists for the
purpose of paying off its indebtedness or distributing its property.

3. The appropriate proportion of the amount of outstanding bonds and
bond anticipation notes of any school district part of which was annexed
to such school district, whether or not the aggregate assessed valuation
of such partially annexed school district, prior to such annexation, was
one hundred thousand dollars or more. Such appropriate proportion of the
amount of such outstanding bonds and bond anticipation notes shall be
ascertained by multiplying the total amount of such outstanding bonds
and bond anticipation notes by the ratio or percentage, as of the time
of the annexation, that the average assessed valuation of the portion of
the school district annexed bore to the average assessed valuation of
the whole of such partially annexed district as it existed prior to such
annexation.