N.Y. General Municipal Law § 768: Debts, liabilities and obligations

§ 768. Debts, liabilities and obligations. 1. All valid and lawful

debts and liabilities existing against a consolidated local government

entity, or which may thereafter arise or accrue against the consolidated

local government entity, which but for consolidation would be valid and

lawful debts or liabilities against one or more of the component local

government entities, shall be deemed and taken to be like debts against

or liabilities of the consolidated local government entity and shall

accordingly be defrayed and answered to by it to the same extent, and no

further than, the component local government entities would have been

bound if no consolidation had taken place.

2. The rights of creditors and all liens upon the property of any of

the component local government entities of a consolidation shall be

preserved unimpaired. The respective component entities shall be deemed

to continue in existence to preserve such rights and liens, and all

debts, liabilities and duties of any of the component entities shall

thenceforth attach to the consolidated local government entity and be

enforced against it to the same extent as if such debts, liabilities and

duties had been incurred or contracted by the consolidated local

government entity.

3. All bonds, contracts and obligations of the component entities

which exist as legal obligations shall be deemed like obligations of the

consolidated local government entity, and all such obligations as are

authorized or required to be issued or entered into shall be issued or

entered into by and in the name of the consolidated local government

entity.