N.Y. Local Finance Law § 101.00: Giving or loaning of municipal credit and contracting indebtedness other than for municipal purposes prohibited

§ 101.00 Giving or loaning of municipal credit and contracting

indebtedness other than for municipal purposes prohibited. a. No

municipality, school district or district corporation shall:

1. Give or loan its credit to or in aid of any individual, or public

or private corporation or association, or private undertaking, or

2. Contract indebtedness except for the purposes of such municipality,

school district or district corporation.

Notwithstanding the foregoing provisions of this paragraph:

1. If any municipality or any county or town on behalf of an

improvement district is authorized by a general law or by a special law

(a) to provide a supply of water, in excess of its own needs, for sale

to any other public corporation or improvement district, (b) to provide

facilities, in excess of its own needs, for the conveyance, treatment

and disposal of sewage, from any other public corporation or improvement

district, or (c) to provide facilities, in excess of its own needs, for

drainage purposes from any other public corporation or improvement

district, the indebtedness contracted by the municipality for such an

object or purpose shall be deemed to be for a county, city, town or

village purpose, as the case may be.

2. If any two or more municipalities and county and town improvement

districts are authorized by a general law or by a special law (a) to

provide for a common supply of water, (b) to provide for the common

conveyance, treatment and disposal of sewage or (c) to provide for a

common drainage system, the joint indebtedness, or the several

indebtedness for a specific proportion of the cost, contracted by the

municipality for such an object or purpose shall be deemed to be for a

county, city, town or village purpose, as the case may be.

3. If any two or more municipalities and school districts and county

and town improvement districts are authorized by a general law or by a

special law to join together to provide any municipal facility, service,

activity or undertaking which each of such units has the power to

provide separately, the joint indebtedness, or the several indebtedness

for a specific proportion of the cost, contracted by the municipality or

school district for such an object or purpose shall be deemed to be for

county, city, town, village or school district purpose, as the case may

be.

b. This section shall not be deemed to prevent:

1. A county from contracting indebtedness for the following purposes:

(a) Advancing to a city, town or school district, pursuant to law, the

amount of unpaid taxes.

(b) Financing tax refunds required to be made by section seven hundred

twenty-six of the real property tax law.

(c) Paying to the state the state tax levied against such county.

2. A town from contracting indebtedness for the following purposes:

(a) Advancing to a county or school district, pursuant to law, the

amount of unpaid taxes.

(b) Paying to a county such town's share of the state tax levied

against such county if such town is required by law to levy and collect

such tax.

3. A city from contracting indebtedness for the following purposes:

(a) Advancing to a county or school district, pursuant to law, the

amount of unpaid taxes.

(b) Paying to a county such city's share of the state tax levied

against such county if such city is required by law to levy and collect

such tax.

4. A municipality from making such provision for the aid, care and

support of the needy, including the aid, care and support of neglected

and dependent children and of the needy sick, as may be authorized by

law.

5. A county, city or town from providing, pursuant to law, for the

care, support, maintenance and secular education of inmates of orphan

asylums, homes for dependent children or incarcerated individuals in

correctional institutions and of children placed in family homes by

authorized agencies, whether under public or private control.

6. A municipality or school district, when authorized by law, from

using its credit for

(a) The examination or inspection of any school or institution of

learning wholly or in part under the control or direction of any

religious denomination, or in which any denominational tenet or doctrine

is taught, or

(b) The transportation of children to and from any school or

institution of learning.

7. A city, town or village from giving or loaning its credit when

authorized to do so by the legislature pursuant to the provisions of

article eighteen of the state constitution.

8. A county, city or town from increasing, pursuant to law, pension

benefits payable to retired members of a police department or fire

department or to widows, dependent children or dependent parents of

members or retired members of a police department or fire department.

9. A municipality, school district or district corporation from

increasing, pursuant to law, the amount of pension of any member of a

retirement system of the state, or of a subdivision of the state.

10. A municipality, school district or district corporation from

providing, pursuant to law, for the protection by insurance or otherwise

against the hazards of unemployment, sickness and old age.

11. A municipality or school district from providing, pursuant to law,

for the education and support of the blind, the deaf, the mute, the

physically handicapped and juvenile delinquents or for health and

welfare services for all children.

12. A city, town or village from expending or loaning its money,

property or credit as consideration for the effectuation of all or part

of the public purpose provided for in sections eleven-a and thirty-six-a

of the private housing finance law.

13. A municipality from making loans of money or credit to or in aid

of any eligible corporation or association for the purpose of providing

hospital or other facilities for the prevention, diagnosis or treatment

of human disease, pain, injury, disability, deformity or physical

condition, and for facilities incidental or appurtenant thereto, as may

be authorized by law pursuant to section seven of article seventeen of

the state constitution.