(a) The following rights of any and all levee districts or drainage districts are expressly declared, ratified, and confirmed:
(1) The right to make compacts and contracts with the United States Government or with any agency of the United States Government or created by the United States Government, to borrow money and repay it, and to accept and receive any and all federal moneys, grants, contributions, gratuities, or loans, or aid of any nature made available by the United States Government or by any of its agencies or instrumentalities; and
(2) The right of any and all levee districts or drainage districts to refinance their indebtedness in cooperation with any and all applicable governmental agencies and the right to proceed in pursuance of any insolvency statute or bankruptcy act adopted by the United States Congress or by the State of Arkansas.
(b)
(1) Nothing in this chapter shall be construed to require the Arkansas Natural Resources Commission to approve or pass upon any such proceedings or bankruptcy or insolvency proceedings or litigation of any nature affecting levee districts or drainage districts.
(2) Each and every drainage district or levee district may proceed with any and all refinancing and refunding plans, insolvency and bankruptcy proceedings, or either, and any and all litigation with like effect as if the commission had not been created.