N.Y. Village Law § 11-1128: Sale or lease of water supply and distribution system

§ 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.