§ 3867. Agreement with the city.
1.The city hereby covenants and\nagrees with the holders of bonds, notes or other obligations issued by\nthe authority pursuant to this title, that the city will not take\nactions which limit, alter or impair the rights and remedies of such\nholders or the security for such bonds, notes or other obligations until\nsuch bonds, notes or other obligations, together with the interest\nthereon and all costs and expenses in connection with any action or\nproceeding by or on behalf of such holders are fully paid and\ndischarged. The authority is authorized to include this covenant and\nagreement of the city in any agreement with the holders of such bonds,\nnotes or other obligations. Nothing contained in this title shall be\ndeemed to restrict the right of the
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§ 3867. Agreement with the city. 1. The city hereby covenants and\nagrees with the holders of bonds, notes or other obligations issued by\nthe authority pursuant to this title, that the city will not take\nactions which limit, alter or impair the rights and remedies of such\nholders or the security for such bonds, notes or other obligations until\nsuch bonds, notes or other obligations, together with the interest\nthereon and all costs and expenses in connection with any action or\nproceeding by or on behalf of such holders are fully paid and\ndischarged. The authority is authorized to include this covenant and\nagreement of the city in any agreement with the holders of such bonds,\nnotes or other obligations. Nothing contained in this title shall be\ndeemed to restrict the right of the city to amend, modify, repeal or\notherwise alter any local law, ordinance or resolution imposing or\nrelating to taxes or fees, or appropriations relating thereto, including\nsales and compensating use taxes imposed pursuant to the authority of\nsection twelve hundred ten of the tax law, so long as, after giving\neffect to such amendment, modification or other alteration, the\naggregate amount as then projected by the authority of (i) sales and\ncompensating use taxes to be imposed pursuant to the authority of\nsection twelve hundred ten of the tax law and paid to the city and (ii)\nall net collections for educational purposes to be set aside by the\ncounty pursuant to the authority of subdivision (a) of section twelve\nhundred sixty-two of the tax law and paid to the city's dependent school\ndistrict during each of the authority's fiscal years thereafter, shall\nbe not less than two hundred percent of maximum annual debt service on\nauthority bonds then outstanding. The city further covenants and agrees\nthat (i) it will not take any action, including the imposition of sales\nand compensating use taxes preempting the county's taxes, to terminate\nor alter the terms of the agreement among the county, the city and the\nother cities in the county under subdivision (c) of section twelve\nhundred sixty-two of the tax law that would reduce or eliminate the\namount of net collections that the county distributes or is to\ndistribute to the city prior to June thirtieth, two thousand\nthirty-seven, without the authority's prior approval, and (ii) if the\ncity imposes sales and compensating use taxes, it shall do so pursuant\nto subdivision (a) of section twelve hundred ten of the tax law at the\nmaximum rate authorized by such section.\n 2. The authority shall not include within any resolution, contract or\nagreement with holders of the bonds, notes or other obligations issued\nunder this title any provision which provides that a default occurs as a\nresult of the city exercising its right to amend, repeal, modify or\notherwise alter such taxes, fees or appropriations. Nothing in this\ntitle shall be deemed to obligate the city to make any payments or\nimpose any taxes; except that, if the city imposes sales and\ncompensating use taxes, it shall do so pursuant to subdivision (a) of\nsection twelve hundred ten of the tax law at the maximum rate authorized\nby such section.\n