Sec. 40. The following apply in the case of a reorganization under this article: (1) Indebtedness that was incurred by a political subdivision before the reorganization: (A) may not be imposed on taxpayers that were not responsible for payment of the indebtedness before the reorganization; and (B) must be paid by the taxpayers that were responsible for payment of the indebtedness before the reorganization. (2) Pension obligations existing as of the effective date of the reorganization: (A) may not be imposed on taxpayers that were not responsible for payment of the pension obligations before the reorganization; and (B) must be paid by the taxpayers that were responsible for payment of the pension obligations before the reorganization.
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