1. Whenever any sewer district heretofore or hereafter incorporated in any county, now or hereafter having a population of not less than seven hundred thousand inhabitants nor more than seven hundred and fifty thousand inhabitants, under any statute of this state heretofore or hereafter enacted is to be dissolved under and pursuant to law, the governor shall appoint a liquidator of such sewer district. Such liquidator shall qualify by taking an oath administered by the circuit court clerk of said county, to faithfully perform the duties of his office as liquidator of such sewer district, and shall give bond conditioned upon like performance in such penal sum as shall be fixed by the circuit court. The governor shall have the power to remove such liquidator at will with or without cause and in the event of such removal shall appoint a successor.

2. Such liquidator shall have all the powers and be charged with all the duties of the board of supervisors of such district, and shall have power by and with the approval of the circuit court to compromise any or all outstanding indebtedness of the sewer district; said liquidator shall have the power with the approval of the court to contest the validity of any claim arising against such sewer district by the institution and prosecution or the defense of any action, and he shall likewise have power, subject to the same approval, where the total uncollected taxes levied by such sewer district exceeds the outstanding indebtedness with interest, to compromise such taxes upon such basis as will provide for the payment of the outstanding debts, with interest, taking into account the cost of liquidation and, if a compromise of any indebtedness of the district shall have been made, such compromise of taxes shall take into account the reduction in the indebtedness made by reason of such compromise.