2023 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 incarcerated individuals in
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.