Arkansas Code
Subchapter 14 - Consolidation, Annexation, and Formation
§ 6-13-1407. Creation of school district — When part of school district taken

(a) Any receiving district or resulting district created under this section shall become the successor in interest to the property of the school district dissolved, shall become liable for the contracts and debts of such a school district, and may sue and be sued therefor.
(b) When territory less than the entire school district is annexed or consolidated to a school district, the receiving district or resulting district shall take the property of the school district from which the territory was taken, as the State Board of Education shall deem proper, and shall be liable for that part of all indebtedness of the school district from which the territory was taken as shall be assigned to it by the state board unless otherwise approved by a majority vote of the affected district's or affected districts' board or boards of directors.