N.Y. General Municipal Law § 790: Debts, liabilities and obligations

§ 790. Debts, liabilities and obligations. The outstanding debts,

liabilities and obligations of the dissolved local government entity

shall be assumed by the town in which the dissolved entity was situated

and shall be a charge upon the taxable property within the limits of the

dissolved entity, collected in the same manner as town taxes. The town

board shall have all powers with respect to the debts, liabilities and

obligations as the governing body of the dissolved entity possessed

prior to its dissolution, including the power to issue town bonds to

redeem bond anticipation notes issued by the dissolved entity.