Section 11-1128. Sale or lease of water supply and distribution system


Latest version.
  • Notwithstanding the provisions of any other law, general or  special,  a
      village  may (1) sell or lease its water supply and distribution system,
      or any part thereof, to a water authority, a county water district or  a
      joint  water  works system established pursuant to article five-B of the
      general  municipal  law  or  (2)  sell,  transfer  or  lease  properties
      constituting  its  water  supply  and  distribution  system, or any part
      thereof, for a fair consideration, to any person or  public  corporation
      for  any  use other than the supply or distribution of water for potable
      purposes upon a determination by the board of trustees  of  the  village
      that  the  properties  to  be  sold, transferred or leased are no longer
      necessary for water supply or other village purposes.  The  proceeds  of
      such  sale,  transfer  or  lease  shall  be  deposited in a reserve fund
      established for the purpose of retiring outstanding  obligations  issued
      by  the  village to finance the cost of the facilities sold and shall be
      expended only for  such  purpose,  except  as  provided  below.  If  the
      proceeds exceed the sum of all installments of principal of and interest
      on  such  indebtedness  due  or  to  become  due,  or  if, when all such
      outstanding obligations shall  have  been  retired,  any  moneys  remain
      unexpended  in  the reserve fund, such excess moneys may be used for any
      village purpose.