§ 99 — Withholding of state assistance upon default in payment of bonds held by the state

§ 99. Withholding of state assistance upon default in payment of bonds\nheld by the state. When any municipality shall be in default for a\nperiod of more than six months on account of principal of its bonds or\non account of interest on such bonds, or on account of both such\nprincipal and interest, and such bonds shall have been owned for not\nless than two years by the state or by the state comptroller in trust,\nor for the benefit of the New York state employees' retirement system or\nof any fund of the state the allotment, apportionment and payment of\nstate assistance pursuant to the provisions of article four-A of this\nchapter or of section one hundred twelve of the highway law to any such\nmunicipality shall be withheld by the state comptroller in the following\nmanner. At the time of remittance of any installment or quarterly\npayment of such state assistance the comptroller shall withhold payment\nof installments or quarterly payments of such state assistance to such\nmunicipality until the indebtedness due from such municipality to the\nstate or to the state comptroller as trustee or for the benefit of the\nNew York state employees' retirement system or of any fund of the state\nshall be paid in full or until the installments or quarterly payments of\nsuch state assistance or portions thereof so withheld shall equal the\namount so due from the municipality.\n