N.Y. City of Troy Issuance of Serial Bonds § 9: No title

§ 9. (a) As additional security for any issue of bonds and/or bond

anticipation notes authorized to be issued by the city of Troy in

accordance with the local finance law or pursuant to this act or

pursuant to title 4 of article 10 of the public authorities law and

issued prior to December 31, 1999, the city council of the city of Troy,

is hereby authorized to irrevocably pledge to the payment of the

principal of and interest on such bonds and/or bond anticipation notes

(i) the city's share of the net collections, as such term is defined in

section 1262 of the tax law, from taxes imposed by the city or by the

county of Rensselaer pursuant to the authority of section 1210 of the

tax law, as amended, or any successor law thereto, and (ii) the city's

share of any moneys received by such city from payments authorized by

subdivision (c) of section 1262 of the tax law made by Rensselaer county

pursuant to a written agreement by and between the city and said county,

or such portion of such net collections or moneys determined by said

city council with the approval of the board at the time of issuance of

said bonds and/or bond anticipation notes to be necessary to so

additionally secure such bonds and/or bond anticipation notes, subject

to the following limitations and conditions: (i) any such pledge shall

become effective on the date of issue of any bonds and/or bond

anticipation notes the payment of which is secured by such pledge, (ii)

any such pledge may be made subject to such terms and conditions, not

inconsistent with this act, as may be determined necessary or

appropriate by such city council, subject however, to any prior rights

to holders or owners of outstanding bonds and/or bond anticipation notes

secured by a pledge of such net collections or moneys, and (iii) any

such pledge shall not be authorized by such city council unless such

city council shall have determined that such pledge is necessary and in

the public interest and such determination by such city council shall

have been approved by the board. Moneys to be received by the city

pursuant to paragraphs (i) and (ii) of this subdivision shall be

deposited, prior to receipt by the city, in the special account

established in the municipal assistance tax fund pursuant to section

92-d of the state finance law. Notwithstanding the previous sentence,

any bond anticipation notes outstanding as of the effective date of this

act which have the irrevocable pledge of moneys received by the city

pursuant to paragraphs (i) and (ii) of this subdivision for the payment

of principal and interest shall continue to have first lien on such

notes until principal and interest have been fully paid.

(b) Any pledge made pursuant to this section shall be valid and

binding from the time when such pledge takes effect, and the net

collections or moneys so pledged and thereafter received by the city

shall be deposited in a segregated account in the debt service fund

established in section eight of this act and shall immediately be

subject to the lien of such pledge without any further act. The lien of

any such pledge shall be valid and binding as against all parties having

claims of any kind in tort, contract or otherwise against the city

irrespective of whether such parties have notice thereof.

(c) The state does hereby pledge and agree with the holders or owners

of any issue of bonds and/or bond anticipation notes secured by such a

pledge that the state will not limit or alter the rights hereby vested

in the city to fulfill the terms of any agreements made with said hold-

ers or owners pursuant to this act, or in any way impair the rights and

remedies of such holders or owners or the security for said bonds and/or

bond anticipation notes until such bonds and/or bond anticipation notes,

together with the interest thereon and all costs and expenses in

connection with any action or proceeding by or on behalf of such holders

or owners are fully paid and discharged; provided however, that this

pledge shall be subject to the reserved right of the state to alter the

base, rate, method of taxation and exemptions from taxation or the

method of distribution of the taxes which may be imposed by the city of

Troy or by Rensselaer county and the net collections or moneys from

which may be pledged pursuant to this act, as additional security for

any issue of bonds and/or bond anticipation notes of such city. The city

is authorized to include this pledge and agreement of the state, subject

to the state's reserved right, in any agreement with the holders or

owners of such bonds and/or bond anticipation notes.