On the day the establishment of a unified union school district becomes effective, the district gains title to the assets and assumes the existing contractual obligations and other liabilities of the member school districts within its borders unless otherwise agreed to by the member districts in the approved plan for the formation of the unified union school district; provided, however, the unified union school district shall in all cases assume the contractual obligations of the member districts regarding each existing collective bargaining agreement or other employment contract until the agreement's or contract's expiration. All trust funds held or enjoyed by a preexisting district shall be held and applied as the terms of the trust indicate. If such trust allows, the funds may be applied for the use of the unified union school district. Within five days of the day a unified union school district becomes effective, the treasurer of each preexisting school district shall pay by check to the treasurer of the unified union school district the full amount of the balance standing in his or her school account and transfer to him or her all outstanding notes and contracts in force. All other officers of the preexisting school districts shall transfer to the corresponding officer of the unified union school district all instruments and other documents giving evidence of the assets, liabilities, and contractual status of the district. (Added 1969, No. 298 (Adj. Sess.), § 51; amended 2007, No. 154 (Adj. Sess.), § 32.)