N.Y. Public Housing Law § 51: Liability of state or municipality

§ 51. Liability of state or municipality. 1. The bonds or other

obligations of an authority shall not be a debt of the state or the

municipality and neither the state nor the municipality shall be liable

thereon nor shall an authority have power in any way to pledge the

credit of the state or the municipality, nor shall the transfer from the

authority to the municipality or the vesting in the municipality of

property theretofore belonging to an authority impose upon the

municipality any obligations except such as it may expressly assume. The

foregoing provisions shall not apply in the event of a guaranty by a

municipality of the bonds or obligations of an authority.

2. Notwithstanding the provisions of the foregoing paragraph, a

municipality shall be liable for the repayment of any loans and interest

thereon made by the state to an authority, acting as an instrumentality

of such municipality.