2013 New York Consolidated Laws
VIL - Village
Article 11 - (11-1100 - 11-1128) WATER
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.