§ 2-254 Effect of incorporation on all districts entirely within\nvillage. 1. Whenever the term "district" is used in this section it\nshall be construed as referring to a fire district, fire protection\ndistrict or fire alarm district, or a town special district, or a town\nimprovement district; and the term "governing body" as used in this\nsection shall be construed as referring to all boards, bodies or\npersons, in which any of the governing powers of a district are vested.\n 2. If on the date of incorporation of a village the limits of the\nvillage are coterminous with the limits of, or wholly include, the\nterritory of a district, such district shall cease to exist at the end\nof the fiscal year of such district next following the first day of June\nfollowing the first day of January next succeeding the date of\nincorporation; except as otherwise provided in this section, the powers\nand duties of the governing body of the district and of all the officers\nof the district in connection therewith shall then cease and determine;\nand any board of commissioners, any office of commissioner and any other\noffice of any such district shall also cease to exist at such time.\n 2-a. If the limits of a village incorporated prior to the first day of\nApril, nineteen hundred sixty-five are coterminous with the limits of,\nor wholly include the territory of, a district, the board of trustees of\nthe village, by local law or pursuant to the provisions of article\nseventeen-A of the general municipal law, may abolish any such district.\nIn addition to any other notice required in connection with the adoption\nof such local law generally, thirty days' written notice of the hearing\nto be held in connection with such local law shall be given to the\ngoverning body of any such district and to the town clerk. A certified\ncopy of any such local law shall be served upon or mailed to such\ngoverning body and clerk within five days following the adoption\nthereof. Except as otherwise provided in this section, the powers and\nduties of the governing body of a district so abolished and of all the\nofficers of the district in connection therewith shall cease and\ndetermine upon the effective date of such local law and any board of\ncommissioners, any office of commissioner and any other office of any\nsuch district shall also cease to exist at such time. No such local law\nshall become effective except on the last day of a fiscal year of the\ntown or district, as the case may be.\n 3. a. The obligations and the contracts of a district which shall so\ncease to exist and the obligations and contracts of a town for the\nbenefit of or chargeable to such a district shall not be impaired by\nthis section.\n b. Notwithstanding the dissolution of a district pursuant to this\nsection,\n (1) an amount shall be levied and collected annually sufficient to pay\nin regular course the principal of and interest on all bonds or\nobligations issued pursuant to the local finance law or otherwise by or\non behalf of such district which are outstanding and unpaid as of the\ndate of the dissolution of the district. Such annual levy and collection\nshall continue until all such outstanding bonds and obligations are paid\nin full.\n (2) all levies, assessments, fees, rates or other charges of the\ndistrict unpaid as of the date of dissolution and all penalties and\ninterest thereon shall be collected.\n (3) all moneys collected under subparagraph two of this paragraph\nwhich would be available for district purposes if the district were not\ndissolved shall be applied to the payment of all obligations of the\ndistrict, other than those described in subparagraph one of this\nparagraph, which are due and payable at the time of the dissolution of\nthe district. All such moneys so collected and not required for such\npurpose shall be paid over to the village treasurer.\n (4) the levies, collections and payments described in subparagraphs\none, two and three of this
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