N.Y. Second Class Cities Law § 205: Compromise of claims

§ 205. Compromise of claims. The corporation counsel shall, whenever

he considers that the interests of the city will be subserved thereby,

enter into an agreement in writing, subject to the approval of the board

of estimate and apportionment, to compromise and settle any claim

against the city, which agreement shall constitute a valid obligation

against the city; and the amount therein provided to be paid shall, with

interest thereon from its date, be included in the next city tax budget

and be collected and paid the same in all respects as a judgment against

the city. If, however, before the adoption of the city tax budget there

shall be received by the city treasurer from any source any moneys not

otherwise appropriated, the amount in the agreement provided to be paid

out of such moneys so received, so far as they will satisfy the same.