(a) Where an independent poor district lies in only one county, the real and personal property of any such district coterminous with a municipality is hereby transferred to and vested in such municipality. Title to the real and personal property of any district lying in two or more municipalities is hereby transferred to and vested in such municipalities, in proportion to the last assessed valuations of real estate for county purposes in each of them, for which purpose, after all the obligations of the poor district have been paid, a decree of distribution shall be made by the court of common pleas, on petition of any municipality interested or of the county commissioners. Any such decree affecting the title to real estate shall be recorded in the office for the recording of deeds of the county: Provided, however, That the transfer and vesting of such property in municipalities shall be subject to the following conditions: The commissioners, as officers of an institution district, are hereby given possession of any real estate so transferred and vested, and of all tangible personal property used in connection with it. The commissioners shall remain in possession of such real and tangible personal property so long as they decide that the purposes of the institution district require it, or until they shall acquire the property by purchase or by right of eminent domain. During this period of possession, the institution district shall pay a fair rental, to be fixed and apportioned by the court of common pleas on petition of the commissioners or of any municipality interested, and this possession shall be good against any purchaser from the municipality. If the municipality shall receive a bona fide offer to buy any of the property so transferred and vested, the court shall, on petition by any municipality interested, require the commissioners, within a reasonable time, to be fixed by the court, to match the offer or to make a better offer, or to institute proceedings to take such property by eminent domain, and, if they do not do so, shall permit the municipality or municipalities to sell in compliance with such offer, free of the commissioners' right of possession.

(b) If an independent poor district has any outstanding obligations, the commissioners, as poor directors of the district, shall receive from the municipality or municipalities, and they shall pay to the commissioners, any moneys transferred or any money realized by the municipality or municipalities from any property transferred and vested by this section, not, however, exceeding the amount of such obligations, and the commissioners shall apply such sums to meet the obligations of the independent poor district. The commissioners, as poor directors of the independent poor district, shall have the power to levy and collect, annually, a special tax within the former independent poor district for the payment of such obligations not otherwise paid for, and for the payment of interest, State taxes, and sinking fund charges on bonds of the independent poor district heretofore or hereafter issued. The commissioners, as poor directors of the independent poor district, shall also have the power, with the approval of the Department of Internal Affairs, in the manner provided by law, to issue and negotiate bonds of the independent poor district to raise funds for the payment of the obligations of the independent poor district, and for the refunding of outstanding bonds issued by it. Such bonds shall be issued and sold in the manner provided by law for bonds of municipalities, and shall be payable at any time not exceeding twenty years from the date thereof.