Section 49-37-12 - Private industry prohibited from owning assets of district--Consent of voters--Sale of individual items permitted

49-37-12. Private industry prohibited from owning assets of district--Consent of voters--Sale of individual items permitted.Neither by sale under foreclosure, receivership or bankruptcy proceedings, nor by alienation in any other manner, may the property of a consumers power district become the property or come under the control of any private person, firm or corporation engaged in the business of generating, transmitting or distributing electricity for profit, by action of the directors of said district without consent of the voters of the district as expressed by a majority vote at any regular or special election called and held for such purpose. But nothing in this section contained shall prevent the district from selling any individual item of equipment, machinery, supplies or facilities which shall be considered by the directors as surplus, obsolete, or no longer necessary to the operation of the district. Source: SL 1950 (SS), ch 17, §61; SDC Supp 1960, §52.1760.