NY Town L § 65 (2021)
2021 New York Laws TWN - Town Article 4 - Town Boards 65 - Actions and Proceedings by and Against Towns.

§  65.  Actions and proceedings by and against towns. 1. Any action or   special proceeding for or against a town, or for its benefit, and upon a   contract lawfully made with it, or with any of its  officers  or  agents   authorized  to  contract  in  its  behalf,  or  to enforce any liability   created, or duly enjoined upon it, or upon any of its officers or agents   for which it is liable, or to recover damages  for  any  injury  to  any   property  or  rights for which it is liable, shall be in the name of the   town. The town board of any town  may  authorize  and  direct  any  town   officer  or  officers  to  institute, defend or appear, in any action or   legal proceeding, in the name of the town, as in  its  judgment  may  be   necessary,  for  the  benefit  or  protection of the town, in any of its   rights or property. It shall be the duty of any officer or  officers  so   authorized  and directed to institute said action or legal proceeding or   to defend or appear therein, and the reasonable and necessary expense of   such action or proceeding, or defense or  appearance  shall  be  a  town   charge. No such officer or officers, however, shall employ legal counsel   except as directed by the town board.2.  The  town  may sue and be sued at law for the breach of any lawful   contract entered into by it on behalf of a district  wholly  located  in   such  town.  Any sum of money recovered by it in such an action shall be   paid over to the town treasury and be credited to such district.  In the   event of the entry of any judgment against such  town  by  reason  of  a   contract  made on behalf of a district, the town shall forthwith satisfy   and pay such judgment, interest and costs, and the  amount  so  paid  in   satisfaction  of any such judgment, interest and costs shall be a charge   against such district and the  amount  thereof  shall  be  assessed  and   levied  against  and collected from the several lots and parcels of land   within the district in the same manner as other district charges, or the   amount of any such  judgment,  including  interest  and  costs,  may  be   financed  pursuant  to  the  local  finance  law  in which event amounts   necessary to provide  for  the  annual  payments  of  principal  of  and   interest on any obligations issued by the town for such purpose shall be   assessed  and  levied  against  and  collected from the several lots and   parcels of land within the district in the same manner as other district   charges.3.  On  and  after  the  first  day  of  September,  nineteen  hundred   thirty-nine,  no  action  shall  be  maintained  against  a town upon or   arising out of a contract entered into by the town unless the same shall   be commenced within eighteen months after the cause  of  action  thereof   shall  have accrued, nor unless a written verified claim shall have been   filed with the town clerk within six months after the  cause  of  action   shall  have  accrued,  but no such action shall be brought upon any such   claim until forty days have elapsed after the filing of the claim in the   office of the town clerk.