N.Y. Public Authorities Law § 2041-e: Governmental capacity of the authority and municipalities

§ 2041-e. Governmental capacity of the authority and municipalities.

The authority, participating counties and other municipalities within

the area of operation, in carrying out their respective powers and

duties under this title, shall be deemed to be acting in a governmental

capacity. The construction, operation and maintenance of any project

financed in whole or in part by the authority, shall be deemed to be the

performance of an essential government function by the authority acting

in its governmental capacity, whether such project shall be owned or

operated by the authority or by any person or other public corporation.