Section 2.1. It shall be lawful for any county, city, borough, incorporated town, or township to execute such agreements and contracts as it may deem necessary or advisable with an authority organized by a city of the second class, by a city of the second class A, by a county or by a city of the third class undertaking to provide, or to design or construct facilities with which to provide, sewer, sewerage or sewage treatment service to it and to its inhabitants and to such adjacent territory as it may be authorized to serve; also to grant, convey, lease, transfer, encumber, mortgage and pledge to such authority, its sewers, sewerage systems, sewage treatment works and appurtenant facilities, and any improvements, extensions and additions thereto; to assign and pledge to such authority rentals, rates and charges charged and collected by it for the use thereof, and to assign to such authority its power to charge and collect the same. No such agreement, contract, grant, conveyance, lease, transfer, assignment, encumbrance, mortgage or pledge shall be construed to prevent the affected county, city, borough, incorporated town, or township from thereafter using its tax revenues for the purpose of maintaining, repairing, altering, inspecting, improving, or extending such sewers, sewerage systems or sewage treatment works.
Every such agreement, contract, grant, conveyance, lease, transfer, assignment, encumbrance, mortgage and pledge heretofore made to or with any authority organized by a city of the second class, by a city of the second class A, by a county or by a city of the third class is hereby ratified, confirmed and made valid, and the same shall be and remain lawful, valid and enforceable according to its terms.
(2.1 amended June 22, 1970, P.L.406, No.133)