N.Y. General Municipal Law § 3-a: Rate of interest on judgments and accrued claims against municipal corporations

§ 3-a. Rate of interest on judgments and accrued claims against

municipal corporations. 1. Except as provided in subdivisions two, four

and five of this section, the rate of interest to be paid by a municipal

corporation upon any judgment or accrued claim against the municipal

corporation shall not exceed nine per centum per annum.

2. The rate of interest to be paid upon any judgment or accrued claim

against the municipal corporation arising out of condemnation

proceedings or action to recover damages for wrongful death shall not

exceed six per centum per annum.

3. The term "municipal corporation" as used in this section shall mean

and include a city, county, village, town, school district, fire

district, a special or public district organized for the purpose of

financing the costs of public improvements or a pension or retirement

system supported in whole or in part by any such city, county, village,

town, school district or special or public district.

4. Payments of interest or principal on any note or bond of the city

of New York issued on or after the effective date of this act which is

guaranteed under the New York City Loan Guarantee Act of 1978, Public

Law 95-339, and which such city has not paid or made funds available to

pay when due, shall accrue interest at the rate borne for principal by

such obligation from such due date until (i) there shall have been

deposited with an independent trustee sufficient monies to cover such

overdue payment and any interest accrued thereon to the date of such

deposit and (ii) the making of such deposit shall have been announced

for three days in succession in a newspaper of general circulation in

the city of New York.

5. Bonds, notes and certificates of participation, and agreements and

instruments related to the foregoing, as authorized pursuant to

paragraph (e) of section 54.10, section 54.90 or section 168.00 of the

local finance law, or section one hundred nine-b of this chapter may

provide for the payment of interest on judgments and claims payable to

or for the account of providers of credit or liquidity support or their

successors in interest, notwithstanding any limitations imposed by this

section.