N.Y. Public Authorities Law § 3967: Agreement with the county

§ 3967. Agreement with the county. 1. The county shall 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 or

allocating and applying, paying or using net collections pursuant to the

authority of subdivision (a), (c) or (d) 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 by the county pursuant to the authority of subpart B of

part one of article twenty-nine of the tax law; and

(ii) all such net collections to be set aside or to be allocated and

applied, paid or used by the county pursuant to the authority of section

twelve hundred sixty-two of the tax law 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, notes or

other obligations 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, modify, repeal or

otherwise alter such taxes, fees or appropriations or such net

collections. Nothing in this title shall be deemed to obligate the

county to make any payments or impose any taxes or set aside or allocate

and apply, pay or use net collections pursuant to the authority 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.