N.Y. Public Authorities Law § 3867: Agreement with the city

§ 3867. Agreement with the city. 1. The city hereby covenants and

agrees with the holders of bonds, notes or other obligations issued by

the authority pursuant to this title, that the city will not take

actions which limit, alter or 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 city in any agreement with the holders of such bonds,

notes or other obligations. Nothing contained in this title shall be

deemed to restrict the right of the city to amend, modify, repeal or

otherwise alter any local law, ordinance or resolution imposing or

relating to taxes or fees, or appropriations relating thereto, including

sales and compensating use taxes imposed pursuant to the authority of

section twelve hundred ten 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 thereafter, shall

be not less than two hundred percent of maximum annual debt service on

authority bonds then outstanding. The city further covenants and agrees

that (i) it will not take any action, including the imposition of sales

and compensating use taxes preempting the county's taxes, to terminate

or alter the terms of the agreement among the county, the city and the

other cities in the county under subdivision (c) of section twelve

hundred sixty-two of the tax law that would reduce or eliminate the

amount of net collections that the county distributes or is to

distribute to the city prior to June thirtieth, two thousand

thirty-seven, without the authority's prior approval, and (ii) if the

city imposes sales and compensating use taxes, it shall do so pursuant

to subdivision (a) of section twelve hundred ten of the tax law at the

maximum rate authorized by such section.

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 city exercising its right to amend, repeal, modify or

otherwise alter such taxes, fees or appropriations. Nothing in this

title shall be deemed to obligate the city to make any payments or

impose any taxes; except that, if the city imposes sales and

compensating use taxes, it shall do so pursuant to subdivision (a) of

section twelve hundred ten of the tax law at the maximum rate authorized

by such section.