ยง  106.00  When  debt-contracting  power of certain counties and towns
  shall cease.  a. Whenever the boundaries of any city  are  the  same  as
  those  of a county, or when any city includes within its boundaries more
  than one county, the power of any county  wholly  included  within  such
  city to contract indebtedness shall cease.
b.  Whenever  the boundaries of any village are the same as those of a
  town, or when any village includes within its  boundaries  a  town,  the
  power  of  any  town  wholly  included  within  such village to contract
  indebtedness shall cease.
Structure New York Laws
Article 2 - Local Indebtedness
Title 8 - Limitations on the Power to Contract Indebtedness
100.00 - Requirement of Pledge of Faith and Credit.
103.00 - Limitation on the Power of Cities and Villages to Authorize Certain Obligations.
104.00 - Limitation on Amount of Local Indebtedness Which May Be Contracted.
104.10 - Additional Limitations on the Power to Contract Indebtedness.
106.00 - When Debt-Contracting Power of Certain Counties and Towns Shall Cease.
108.00 - Financing of Safety Net Assistance on a Pay-as-You-Go Basis.