NY Loc Fin L § 101.00 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 8 - Limitations on the Power to Contract Indebtedness 101.00 - Giving or Loaning of Municipal Credit and Contracting Indebtedness Other Than for Municipal Purposes Prohibited.

§  101.00  Giving  or  loaning  of  municipal  credit  and contracting indebtedness  other  than  for  municipal  purposes  prohibited.  a.  No municipality, school district or district corporation shall:   1.  Give  or loan its credit to or in aid of any individual, or public or private corporation or association, or private undertaking, or   2. Contract indebtedness except for the purposes of such municipality, school district or district corporation. Notwithstanding the foregoing provisions of this paragraph:   1. If any  municipality  or  any  county  or  town  on  behalf  of  an improvement  district is authorized by a general law or by a special law (a) to provide a supply of water, in excess of its own needs,  for  sale to  any other public corporation or improvement district, (b) to provide facilities, in excess of its own needs, for  the  conveyance,  treatment and disposal of sewage, from any other public corporation or improvement district,  or (c) to provide facilities, in excess of its own needs, for drainage purposes from  any  other  public  corporation  or  improvement district,  the  indebtedness  contracted by the municipality for such an object or purpose shall be deemed to be for  a  county,  city,  town  or village purpose, as the case may be.   2.  If  any two or more municipalities and county and town improvement districts are authorized by a general law or by a  special  law  (a)  to provide  for  a  common  supply  of water, (b) to provide for the common conveyance, treatment and disposal of sewage or (c)  to  provide  for  a common   drainage   system,  the  joint  indebtedness,  or  the  several indebtedness for a specific proportion of the cost,  contracted  by  the municipality  for  such an object or purpose shall be deemed to be for a county, city, town or village purpose, as the case may be.   3. If any two or more municipalities and school districts  and  county and  town  improvement districts are authorized by a general law or by a special law to join together to provide any municipal facility, service, activity or undertaking which each  of  such  units  has  the  power  to provide  separately, the joint indebtedness, or the several indebtedness for a specific proportion of the cost, contracted by the municipality or school district for such an object or purpose shall be deemed to be  for county,  city, town, village or school district purpose, as the case may be.   b. This section shall not be deemed to prevent:   1. A county from contracting indebtedness for the following purposes:  (a) Advancing to a city, town or school district, pursuant to law, the amount of unpaid taxes.  (b) Financing tax refunds required to be made by section seven hundred twenty-six of the real property tax law.  (c) Paying to the state the state tax levied against such county.   2. A town from contracting indebtedness for the following purposes:  (a) Advancing to a county or school district,  pursuant  to  law,  the amount of unpaid taxes.  (b)  Paying  to  a  county  such  town's share of the state tax levied against such county if such town is required by law to levy and  collect such tax.   3. A city from contracting indebtedness for the following purposes:  (a)  Advancing  to  a  county or school district, pursuant to law, the amount of unpaid taxes.  (b) Paying to a county such city's  share  of  the  state  tax  levied against  such county if such city is required by law to levy and collect such tax.   4. A municipality from making such provision for  the  aid,  care  and support  of  the needy, including the aid, care and support of neglected  and dependent children and of the needy sick, as may  be  authorized  by law.   5.  A  county,  city  or town from providing, pursuant to law, for the care, support, maintenance and secular education of  inmates  of  orphan asylums,  homes  for dependent children or correctional institutions and of children placed in family homes by authorized agencies, whether under public or private control.   6. A municipality or school district, when  authorized  by  law,  from using its credit for  (a)  The  examination  or  inspection  of any school or institution of learning wholly or in  part  under  the  control  or  direction  of  any religious denomination, or in which any denominational tenet or doctrine is taught, or  (b)  The  transportation  of  children  to  and  from  any  school  or institution of learning.   7. A city, town or village from giving  or  loaning  its  credit  when authorized  to  do  so  by the legislature pursuant to the provisions of article eighteen of the state constitution.   8. A county, city or town from increasing, pursuant  to  law,  pension benefits  payable  to  retired  members  of  a police department or fire department or to widows, dependent  children  or  dependent  parents  of members or retired members of a police department or fire department.   9.  A  municipality,  school  district  or  district  corporation from increasing, pursuant to law, the amount of pension of any  member  of  a retirement system of the state, or of a subdivision of the state.   10.  A  municipality,  school  district  or  district corporation from providing, pursuant to law, for the protection by insurance or otherwise against the hazards of unemployment, sickness and old age.   11. A municipality or school district from providing, pursuant to law, for the education and support of the blind,  the  deaf,  the  mute,  the physically  handicapped  and  juvenile  delinquents  or  for  health and welfare services for all children.   12. A city, town or village  from  expending  or  loaning  its  money, property  or credit as consideration for the effectuation of all or part of the public purpose provided for in sections eleven-a and thirty-six-a of the private housing finance law.   13. A municipality from making loans of money or credit to or  in  aid of  any eligible corporation or association for the purpose of providing hospital or other facilities for the prevention, diagnosis or  treatment of  human  disease,  pain,  injury,  disability,  deformity  or physical condition, and for facilities incidental or appurtenant thereto, as  may be  authorized  by law pursuant to section seven of article seventeen of the state constitution.