(1) The lake authority may not be dissolved unless the lake authority has no outstanding bonded indebtedness, other unpaid loans, indebtedness, or advances, and no legally binding contractual obligations with persons or entities other than the state.
(2) Upon the dissolution of the lake authority:
(a) the Governor's Office of Economic Development shall publish a notice of dissolution as required in Section 45-1-101; and
(b) all title to property owned by the lake authority vests in the state.
(3) The books, documents, records, papers, and seal of the dissolved lake authority shall be deposited for safekeeping and reference with the state auditor.
(4) The lake authority shall pay all expenses of the deactivation and dissolution.