(1) Whenever a city of the second class, a village, or a ward of a city of the second class or village is consolidated according to law with a city of the primary class, the territory so consolidated shall become annexed to and merged into the school district of such city of the primary class if such territory is in a school district that is not a member of a learning community and the school district of such city of the primary class is not a member of a learning community. All laws, rules, and regulations governing the school district and schools of such city of the primary class shall apply to the district and schools within the territory annexed to it. The school district into which the others in whole or in part are merged shall succeed to all the property, contracts, and obligations of each and all of the school districts so merged into it, in whole or in part, and shall assume all of their valid contracts and obligations.

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(2) If one or more wards, but less than all wards, of a city of the second class or of a village become consolidated with such city of the primary class, the school district into which such territory is merged shall assume such portion of all valid contracts and obligations of the school district of which such territory before the consolidation was a part as the taxable valuation of all the property of the territory thus merged with the school district of such city of the primary class bears to the total taxable valuation of all the property within the school district from which such territory has been detached.