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