NY Pub Auth L § 2436 (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 18 - State of New York Municipal Bond Bank Agency Act 2436 - State Aid Guarantee.

§ 2436. State aid guarantee. 1. In the event that a municipality fails   to make any payment of principal or interest on its municipal bonds, the   chairman  of  the  agency  shall  certify  to  the  comptroller that the   municipality has failed to meet its obligations. Such certificate  shall   be  in  such  form  as the agency deems desirable, but shall include the   exact  amount  of  interest  and  principal  required  to  satisfy   the   municipality's obligations to the agency.2.  The comptroller, upon receipt of such certificate from the agency,   shall withhold from the municipality  any  state  aid  payable  to  such   municipality  to  the  extent  necessary to meet the certified amount of   interest or principal and shall immediately pay over to the  agency  the   amount so withheld.3.  Pending  payment  to  the  agency from the comptroller of any such   state aid withheld from a municipality, the agency shall, if payments of   interest or principal are due on the agency's bonds, withdraw an  amount   sufficient  to  meet  such amounts withheld from a municipality from the   debt service reserve fund securing such bonds. Any such amount withdrawn   from such debt service reserve fund shall be paid into such debt service   reserve fund upon receipt by the agency  from  the  comptroller  of  any   state aid withheld. Any amount so paid to the agency from such state aid   shall  not  obligate  the state to make, nor entitle the municipality to   receive, any additional amounts of state aid.4. In the event that a special program municipality shall fail to make   a payment in such amount (as calculated in accordance with  the  special   program  agreement  to  which such municipality shall be a party) and by   such date as is provided to be made by such municipality in its  special   program  agreement,  the  chairman of the agency shall so certify to the   comptroller. Such certificate shall be in such form as the agency  deems   desirable, but shall specify the amount by which such payment shall have   been  deficient.  The comptroller, upon receipt of such certificate from   the agency, shall withhold from such special  program  municipality  any   state  aid  payable  to such municipality to the extent of the amount so   stated  in  such  certificate  as  not  having  been  made,  and   shall   immediately  pay  over  to  the agency the amount so withheld; provided,   however, that in the case of a special program  agreement  entered  into   for  the  purpose  described  in  paragraph  (b) or (c) or (d) or (e) of   subdivision one of section twenty-four  hundred  thirty-five-a  of  this   title,  the comptroller shall be authorized to withhold from the special   program municipality such school aid as is payable to  the  city  school   district  of  the  special  program  municipality,  to the extent of the   amount so stated in such certificate as not having been made, and  shall   immediately pay over to the agency the amount so withheld. Any amount so   paid  to the agency from such state and/or school aid shall not obligate   the state to make, nor  entitle  the  special  program  municipality  to   receive,  any  additional  amounts  of  state and/or school aid. Nothing   contained therein shall be deemed to prevent the state  from  modifying,   reducing  or  eliminating any program or programs of state and/or school   aid; nor shall the state be obligated by the terms  hereof  to  maintain   state and/or school aid at any particular level or amount.5.  In  the event that a special school deficit program district shall   fail to make a payment in such amount (as calculated in accordance  with   the  special  school  deficit  program  agreement  to  which such school   district shall be a party) and by such date as is provided to be made by   such school district in its special school  deficit  program  agreement,   the  chairman  of the agency shall so certify to the comptroller, with a   copy to the commissioner of education. Such certificate shall be in such   form as the agency deems desirable, but  shall  specify  the  amount  by   which  such  payment  shall  have  been deficient. The comptroller, upon    receipt of such certificate from the agency, shall  withhold  from  such   special  school  deficit program district any school aid payable to such   special school deficit program district to the extent of the  amount  so   stated   in  such  certificate  as  not  having  been  made,  and  shall   immediately pay over to the agency the amount so withheld. Any amount so   paid to the agency from such school aid shall not obligate the state  to   make,  nor  entitle  the  special  school  deficit  program  district to   receive, any additional amounts of school aid. Nothing contained therein   shall be deemed  to  prevent  the  state  from  modifying,  reducing  or   eliminating  any  program or programs of school aid; nor shall the state   be obligated  by  the  terms  hereof  to  maintain  school  aid  at  any   particular level or amount.