In addition to the requirements of § 9-706 of this subtitle, whenever a municipal authority acquires a privately owned system under this subtitle, the provisions of this section apply. If a municipal authority takes possession of a privately owned system, the municipal authority: May extend, alter, maintain, or operate the acquired system together with the municipal system; Shall subject the property served by the acquired system to the same benefit assessment as property served by the municipal system; May compensate any owner of property served by the acquired system for any payment by the property owner toward the construction of the acquired system; and Shall subject an owner or the agent of the owner of property served by the acquired system to the same rules, regulations, and penalties as any owner or the agent of the owner of property served by the municipal system. If a municipal authority considers any part of the privately owned system unfit for incorporation into the municipal system, the municipal authority may disregard the unfit part of the privately owned system and extend the municipal system to serve the property served by the unfit part of the privately owned system. The provisions of Part II of this subtitle that apply to a system constructed by the municipal authority apply to the system acquired or extended by the municipal authority under this section.