Section 21. Upon termination or dissolution of the commission, the title to all funds and other properties owned by it which remain after payment of all bonds and other obligations of the commission shall vest in the municipality. Notwithstanding the foregoing, if the commission shall fail on or before three years following the date of acceptance of this chapter to pay or refund or provide for the payment of all notes and the interest thereon issued by the commission and guaranteed by the municipality pursuant to section nine, the commission shall thereupon terminate and be dissolved, and all funds, properties, assets and liabilities owned or controlled by it on such date and all rights, benefits and obligations to which the commission shall then be subject, shall immediately vest in, be assumed by, and be reinstated in the municipality by operation of law; provided, however, that if upon any such termination or dissolution any bonds or notes of the commission shall be outstanding, such bonds or notes, unless guaranteed by the municipality under section nine, shall continue to be payable solely from the revenues and other property pledged therefor and shall not be or become a debt or obligation of the municipality except to the extent of such pledge.

No law affecting the powers, rights, duties, or obligations of the commission shall be effective unless it shall apply to water and sewer districts generally or shall have been approved under the provisions of Article 2 of the Amendments of the Constitution of the Commonwealth.