§ 9 — No title

§ 9. (a) As additional security for any issue of bonds and/or bond\nanticipation notes authorized to be issued by the city of Troy in\naccordance with the local finance law or pursuant to this act or\npursuant to title 4 of article 10 of the public authorities law and\nissued prior to December 31, 1999, the city council of the city of Troy,\nis hereby authorized to irrevocably pledge to the payment of the\nprincipal of and interest on such bonds and/or bond anticipation notes\n(i) the city's share of the net collections, as such term is defined in\nsection 1262 of the tax law, from taxes imposed by the city or by the\ncounty of Rensselaer pursuant to the authority of section 1210 of the\ntax law, as amended, or any successor law thereto, and (ii) the city's\nshare of any moneys received by such city from payments authorized by\nsubdivision (c) of section 1262 of the tax law made by Rensselaer county\npursuant to a written agreement by and between the city and said county,\nor such portion of such net collections or moneys determined by said\ncity council with the approval of the board at the time of issuance of\nsaid bonds and/or bond anticipation notes to be necessary to so\nadditionally secure such bonds and/or bond anticipation notes, subject\nto the following limitations and conditions: (i) any such pledge shall\nbecome effective on the date of issue of any bonds and/or bond\nanticipation notes the payment of which is secured by such pledge, (ii)\nany such pledge may be made subject to such terms and conditions, not\ninconsistent with this act, as may be determined necessary or\nappropriate by such city council, subject however, to any prior rights\nto holders or owners of outstanding bonds and/or bond anticipation notes\nsecured by a pledge of such net collections or moneys, and (iii) any\nsuch pledge shall not be authorized by such city council unless such\ncity council shall have determined that such pledge is necessary and in\nthe public interest and such determination by such city council shall\nhave been approved by the board. Moneys to be received by the city\npursuant to paragraphs (i) and (ii) of this subdivision shall be\ndeposited, prior to receipt by the city, in the special account\nestablished in the municipal assistance tax fund pursuant to section\n92-d of the state finance law. Notwithstanding the previous sentence,\nany bond anticipation notes outstanding as of the effective date of this\nact which have the irrevocable pledge of moneys received by the city\npursuant to paragraphs (i) and (ii) of this subdivision for the payment\nof principal and interest shall continue to have first lien on such\nnotes until principal and interest have been fully paid.\n (b) Any pledge made pursuant to this section shall be valid and\nbinding from the time when such pledge takes effect, and the net\ncollections or moneys so pledged and thereafter received by the city\nshall be deposited in a segregated account in the debt service fund\nestablished in section eight of this act and shall immediately be\nsubject to the lien of such pledge without any further act. The lien of\nany such pledge shall be valid and binding as against all parties having\nclaims of any kind in tort, contract or otherwise against the city\nirrespective of whether such parties have notice thereof.\n (c) The state does hereby pledge and agree with the holders or owners\nof any issue of bonds and/or bond anticipation notes secured by such a\npledge that the state will not limit or alter the rights hereby vested\nin the city to fulfill the terms of any agreements made with said hold-\ners or owners pursuant to this act, or in any way impair the rights and\nremedies of such holders or owners or the security for said bonds and/or\nbond anticipation notes until such bonds and/or bond anticipation notes,\ntogether with the interest thereon and all costs and expenses in\nconnection with any action or proceeding by or on behalf of such holders\nor owners are fully paid and discharged; provided however, that this\npledge shall be subject to the reserved right of the state to alter the\nbase, rate, method of taxation and exemptions from taxation or the\nmethod of distribution of the taxes which may be imposed by the city of\nTroy or by Rensselaer county and the net collections or moneys from\nwhich may be pledged pursuant to this act, as additional security for\nany issue of bonds and/or bond anticipation notes of such city. The city\nis authorized to include this pledge and agreement of the state, subject\nto the state's reserved right, in any agreement with the holders or\nowners of such bonds and/or bond anticipation notes.\n