Section 11-42-163
Payment or assumption of indebtedness and liabilities of municipality annexed.
All indebtedness and liabilities of every kind and character of the city or town annexed shall be paid or payment thereof assumed by the annexing city or town. As between the city or town annexed and the annexing city or town, the agreement of annexation and the terms thereof shall be binding as regards the payment or assumption of such indebtedness, but as to creditors, the payment or the assumption of payment by the annexing city or town shall be absolute and unconditional.
(Code 1907, §1148; Code 1923, §1843; Code 1940, T. 37, §210.)