(2) Upon the repeal of the resolution which declared the county or the city of New York to be a soil and water conservation district, the directors may not enter into any more contracts or agreements on behalf of the district, and all rules and regulations theretofore adopted and in force within such district shall be of no further force and effect. Such district, however, shall continue for the purpose of fulfilling its contracts, discharging any existing obligations, collecting and distributing its assets and doing all other acts required to adjust and wind up its affairs.

(3) Upon the repeal by the county board or the city council of the resolution declaring the county or the city of New York to be a soil and water conservation district, the directors shall at public auction dispose of all property belonging to the district as soon as said property is no longer needed by the district to fulfill any existing contracts, and shall forthwith pay over the proceeds of such sale, after paying the necessary costs of the sale, into the county or the city of New York treasury. The directors shall, at least ten days prior to the holding of such public auction, notify the state committee of the property proposed to be sold thereat, and after such sale shall render to the county board or the city council and to the state committee a report of such sale, specifying the property sold, the amount received therefore, and the disposition of the proceeds. Such report of the sale shall also be accompanied by a list of the remaining property of the district still undisposed of.