"Section 2168.    Beginning of corporate existence of new municipality, etc. — Where provision is made for the creation or organization of a new municipality, it shall come into existence as a separate corporate body upon the qualification of the mayor, vice-mayor, and a majority of the councilors, unless some other time be fixed therefor by law.

"The assets and liabilities of the municipality or municipalities affected by such organization or creation of a new municipality shall be equitably distributed between the municipality or municipalities so affected and the new municipality, such distribution to be made in the same manner as prescribed in section sixty-eight of this Code in the case of a municipality organized by executive order of the President of the Philippines. This provision shall be applicable to all municipalities created or organized by special laws since July fourth, nineteen hundred and forty six. 

"When a municipal district or other local territorial division is converted or fused into a municipality all property rights vested in the original territorial organization shall become vested in the government of the municipality."