N.Y. Public Authorities Law § 3866-a: Agreement with the county

§ 3866-a. Agreement with the county. 1. The county does hereby

covenant and agree with the holders of any issue of bonds, notes or

other obligations issued by the authority pursuant to this title and

secured by such covenant and agreement that the county will not limit,

alter or impair the rights hereby vested in the authority to fulfill the

terms of any agreements made with such holders pursuant to this title,

or in any way impair the rights and remedies of such holders or the

security for such bonds, notes or other obligations until such bonds,

notes or other obligations, together with the interest thereon and all

costs and expenses in connection with any action or proceeding by or on

behalf of such holders are fully paid and discharged. The authority is

authorized to include this covenant and agreement of the county in any

agreement with the holders of such bonds, notes or other obligations.

Nothing contained in this title shall be deemed to restrict any right of

the county to amend, modify, repeal or otherwise alter any local laws,

ordinances or resolutions imposing or relating to taxes or fees, or

appropriations relating to such taxes or fees, or setting aside net

collections for educational purposes pursuant to the authority of

subdivision (a) of section twelve hundred sixty-two of the tax law, so

long as, after giving effect to such amendment, modification or other

alteration, the aggregate amount as then projected by the authority of

(i) sales and compensating use taxes to be imposed pursuant to the

authority of section twelve hundred ten of the tax law and paid to the

city and (ii) all net collections for educational purposes to be set

aside by the county pursuant to the authority of subdivision (a) of

section twelve hundred sixty-two of the tax law and paid to the city's

dependent school district during each of the authority's fiscal years

following the effective date of such amendment, modification or other

alteration shall be not less than two hundred percent of maximum annual

debt service on authority bonds then outstanding. Notwithstanding

anything to the contrary in this section, the county further agrees that

it shall impose taxes pursuant to the authority of subdivision (a) of

section twelve hundred ten of the tax law at the rate of no less than

three percent.

2. The authority shall not include within any resolution, contract or

agreement with holders of the bonds, notes or other obligations issued

under this title any provision which provides that a default occurs as a

result of the county exercising its right to amend, repeal, modify or

otherwise alter such taxes, fees or appropriations or such net

collections set aside for educational purposes. Nothing in this title

shall be deemed to obligate the county to make any payments or impose

any taxes or set aside net collections for educational purposes pursuant

to the authority of subdivision (a) of section twelve hundred sixty-two

of the tax law; except that the county shall impose taxes pursuant to

the authority of subdivision (a) of section twelve hundred ten of the

tax law at the rate of no less than three percent.