Section 477 - Merger of town and incorporated school districts(a) An incorporated school district, by a majority vote of the legal voters present and voting at any meeting legally warned, may surrender its charter as a corporation for the maintenance of public schools or such part of its charter as pertains to the maintenance of public schools. Such surrender shall take effect not later than July 1 following the vote so taken, and such school corporation shall cease to exist, and it shall become thereby a part of the town school district. In the event of any such merger notwithstanding the provisions of section 423 of this title, the directors of the incorporated school district holding office at the time of the merger shall become members of the board of school directors of the town school district and shall continue in that office until the expiration of the terms for which they were elected by the incorporated school district.(b) By a majority vote of the legal voters present and voting at any meeting legally warned, a town district may become a part of an incorporated district, provided the incorporated district, at a meeting legally warned, votes to accept such merger. Such merger shall take effect July 1 following the vote so taken. When such a merger has occurred, the incorporated district shall be considered a town district in all respects pertaining to the maintenance and administration of its public schools.(c) In case of a union of an incorporated district and a town district under either subsection (a) or (b) of this section, each district shall settle its own business affairs and pay all its indebtedness, except for repairs and new buildings, shall deposit its records with the town clerk, and shall no longer exist except for the settlement of its own pecuniary affairs. In effecting such settlement, a district may remain in existence for not more than five years for the purpose only of voting, assessing, and collecting a special tax annually to pay such indebtedness.Amended 1964, No. 7 (Sp. Sess.), eff. 3/4/1964.