§ 3. Restrictions on creation and indebtedness of certain corporations.

370 words·~2 min read·/ny/constitution/local-finances/3

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

§ 3. No municipal or other corporation (other than a county, city,

town, village, school district or fire district, or a river improvement,

river regulating, or drainage district, established by or under the

supervision of the department of conservation) possessing the power

to contract indebtedness and

(b)to levy taxes or benefit assessments

upon real estate or to require the levy of such taxes or assessments,

shall hereafter be established or created, but nothing herein shall

prevent the creation of improvement districts in counties and towns,

provided that the county or town or towns in which such districts are

located shall pledge its or their faith and credit for the payment of

the principal of and interest on all indebtedness to be contracted for

the purposes of such districts, and in ascertaining the power of any

such county or town to contract indebtedness, such indebtedness shall be

included, unless such indebtedness would, under the provisions of this

article, be excluded in ascertaining the power of a county or town to

contract indebtedness. No such corporation now existing shall hereafter

contract any indebtedness without the consent, granted in such manner as

may be prescribed by general law, of the city or village within which,

or of the town within any unincorporated area of which any real estate

may be subject to such taxes or assessments. If the real estate subject

to such taxes or assessments is wholly within a city, village or the

unincorporated area of a town, in ascertaining the power of such city,

village or town to contract indebtedness, there shall be included any

indebtedness hereafter contracted by such corporation, unless such

indebtedness would, under the provisions of this article, be excluded if

contracted by such city, village or town. If only part of the real

estate subject to such taxes or assessments is within a city, village or

the unincorporated area of a town, in ascertaining the power of such

city, village or town to contract indebtedness, there shall be included

the proportion, determined as prescribed by general law, of any

indebtedness hereafter contracted by such corporation, unless such

indebtedness would, under the provisions of this article, be excluded if

contracted by such city, village or town.