(1) Whenever it is desired and proposed to convert a duly organized rural fire protection district to a suburban fire protection district as authorized by section 35-502, such conversion may be accomplished in the manner provided in this section.

(2) The board of directors of such district shall adopt by majority vote of all the directors thereof a resolution setting forth the proposal to convert such district to a suburban fire protection district. Such resolution shall then be submitted to the electors of the district for approval at a regular meeting or a special meeting thereof called for that purpose after due notice of such regular or special meeting and of the proposal for conversion has been given in the manner prescribed by section 35-507.

(3) If such resolution for conversion is approved by a majority vote of the electors present and voting at such meeting, the secretary-treasurer of the district shall prepare a certified copy of the resolution, shall certify that the resolution was duly adopted by the board of directors of the district and approved by a majority vote of the electors thereof, and shall forward the approved resolution to the county clerk of the county within which the district is located or, if such district is located within two or more counties, to the county clerk of the county within which the greater area of the district is situated. The secretary-treasurer of the district shall also deposit with the county clerk a sum sufficient to defray the expense of publishing the notices required.

(4) The county clerk shall then confer with the county clerk of any other county concerned and shall determine and certify that the district contains within its boundaries at least two hundred homes and has a taxable valuation of at least two million eight hundred sixty thousand dollars and shall thereafter designate a time and place for the proposal for conversion to be heard by the county board in which the district is located or, if the district is located within two or more counties, by a joint meeting of the county boards of the counties concerned. Notice of such hearing shall be given by publication two weeks in a newspaper of general circulation within each county in which the district is located, the last publication appearing at least seven days prior to the hearing.

(5) At the time and place so fixed, the county board or boards shall meet and all persons residing in or owning taxable property within the district shall have an opportunity to be heard respecting the proposal for conversion. Thereupon, the county board or boards shall determine whether the proposed conversion is suited to the general fire protection policy of the county or each of such counties as a whole and shall make a written order of such determination which shall be filed in the office of the county clerk of each county in which such district is located. If the order and determination approves such conversion, the district shall thereafter cease to be a rural fire protection district and shall become a suburban fire protection district. The conversion of any such rural fire protection district to a suburban fire protection district shall not impair or affect its right in or to property and shall not impair, affect, or discharge any contract, obligation, lien, or charge for or upon which it might be liable had such conversion not been made.