Section 9 - Enacted without section heading(a) As additional security for any issue of bonds and/or bond anticipation notes authorized to be issued by the city of Troy in accordance with the local finance law or pursuant to this act or pursuant to title 4 of article 10 of the public authorities law and issued prior to December 31, 1999, the city council of the city of Troy, is hereby authorized to irrevocably pledge to the payment of the principal of and interest on such bonds and/or bond anticipation notes (i) the city's share of the net collections, as such term is defined in section 1262 of the tax law, from taxes imposed by the city or by the county of Rensselaer pursuant to the authority of section 1210 of the tax law, as amended, or any successor law thereto, and (ii) the city's share of any moneys received by such city from payments authorized by subdivision (c) of section 1262 of the tax law made by Rensselaer county pursuant to a written agreement by and between the city and said county, or such portion of such net collections or moneys determined by said city council with the approval of the board at the time of issuance of said bonds and/or bond anticipation notes to be necessary to so additionally secure such bonds and/or bond anticipation notes, subject to the following limitations and conditions: (i) any such pledge shall become effective on the date of issue of any bonds and/or bond anticipation notes the payment of which is secured by such pledge, (ii) any such pledge may be made subject to such terms and conditions, not inconsistent with this act, as may be determined necessary or appropriate by such city council, subject however, to any prior rights to holders or owners of outstanding bonds and/or bond anticipation notes secured by a pledge of such net collections or moneys, and (iii) any such pledge shall not be authorized by such city council unless such city council shall have determined that such pledge is necessary and in the public interest and such determination by such city council shall have been approved by the board Moneys to be received by the city pursuant to paragraphs (i) and (ii) of this subdivision shall be deposited, prior to receipt by the city, in the special account established in the municipal assistance tax fund pursuant to section 92 -d of the state finance law. Notwithstanding the previous sentence, any bond anticipation notes outstanding as of the effective date of this act which have the irrevocable pledge of moneys received by the city pursuant to paragraphs (i) and (ii) of this subdivision for the payment of principal and interest shall continue to have first lien on such notes until principal and interest have been fully paid.
(b) Any pledge made pursuant to this section shall be valid and binding from the time when such pledge takes effect, and the net collections or moneys so pledged and thereafter received by the city shall be deposited in a segregated account in the debt service fund established in section eight of this act and shall immediately be subject to the lien of such pledge without any further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the city irrespective of whether such parties have notice thereof.(c) The state does hereby pledge and agree with the holders or owners of any issue of bonds and/or bond anticipation notes secured by such a pledge that the state will not limit or alter the rights hereby vested in the city to fulfill the terms of any agreements made with said hold- ers or owners pursuant to this act, or in any way impair the rights and remedies of such holders or owners or the security for said bonds and/or bond anticipation notes until such bonds and/or bond anticipation notes, together with the interest thereon and all costs and expenses in connection with any action or proceeding by or on behalf of such holders or owners are fully paid and discharged; provided however, that this pledge shall be subject to the reserved right of the state to alter the base, rate, method of taxation and exemptions from taxation or the method of distribution of the taxes which may be imposed by the city of Troy or by Rensselaer county and the net collections or moneys from which may be pledged pursuant to this act, as additional security for any issue of bonds and/or bond anticipation notes of such city. The city is authorized to include this pledge and agreement of the state, subject to the state's reserved right, in any agreement with the holders or owners of such bonds and/or bond anticipation notes.N.Y. City of Troy Issuance of Serial Bonds Law § 9