N.Y. Second Class Cities Law § 206: Judgments against the city

§ 206. Judgments against the city. The amount of any judgment

recovered against the city and payable by it, remaining unpaid, with the

interest due thereon, in case the time to appeal therefrom has expired

and no appeal has been taken, or a certificate of no appeal therefrom

has been given by the corporation counsel, or in case such judgment is

finally affirmed, or an appeal taken and the execution thereon shall not

be stayed, shall be reported to the common council immediately after the

same shall have become payable, as aforesaid; and the amount thereof

shall be included in the next city tax budget. Such judgments shall be

paid in the order of their recovery out of the moneys first paid into

the city treasury on account of the annual taxes or, prior thereto, out

of the proceeds of tax anticipation notes issued in anticipation of the

collection of such taxes or out of the proceeds of budget notes. If,

however, there be any moneys in the treasury to the credit of any fund

derived from city revenues, other than taxation, in excess of the

estimated revenues from such source, and not otherwise appropriated,

sufficient to satisfy judgments against the city, the comptroller shall

issue warrants for the payment of such judgments out of said funds in

the order of their recovery. Until the moneys applicable to the payment

of a judgment have been raised and paid into the city treasury and

payment of the judgment has been refused, no execution shall issue

against the city unless the amount of such judgment shall not have been

included in the tax budget.