New York Laws
Title 2 - Buffalo Fiscal Stability Authority
3867 - Agreement With the City.

§ 3867. Agreement with the city. 1. The city hereby covenants and
agrees with the holders of bonds, notes or other obligations issued by
the authority pursuant to this title, that the city will not take
actions which limit, alter or impair the rights and remedies of such
holders or the security for such bonds, notes or other obligations until
such bonds, notes or other obligations, together with the interest
thereon and all costs and expenses in connection with any action or
proceeding by or on behalf of such holders are fully paid and
discharged. The authority is authorized to include this covenant and
agreement of the city in any agreement with the holders of such bonds,
notes or other obligations. Nothing contained in this title shall be
deemed to restrict the right of the city to amend, modify, repeal or
otherwise alter any local law, ordinance or resolution imposing or
relating to taxes or fees, or appropriations relating thereto, including
sales and compensating use taxes imposed pursuant to the authority of
section twelve hundred ten of the tax law, so long as, after giving
effect to such amendment, modification or other alteration, the
aggregate amount as then projected by the authority of (i) sales and
compensating use taxes to be imposed pursuant to the authority of
section twelve hundred ten of the tax law and paid to the city and (ii)
all net collections for educational purposes to be set aside by the
county pursuant to the authority of subdivision (a) of section twelve
hundred sixty-two of the tax law and paid to the city's dependent school
district during each of the authority's fiscal years thereafter, shall
be not less than two hundred percent of maximum annual debt service on
authority bonds then outstanding. The city further covenants and agrees
that (i) it will not take any action, including the imposition of sales
and compensating use taxes preempting the county's taxes, to terminate
or alter the terms of the agreement among the county, the city and the
other cities in the county under subdivision (c) of section twelve
hundred sixty-two of the tax law that would reduce or eliminate the
amount of net collections that the county distributes or is to
distribute to the city prior to June thirtieth, two thousand
thirty-seven, without the authority's prior approval, and (ii) if the
city imposes sales and compensating use taxes, it shall do so pursuant
to subdivision (a) of section twelve hundred ten of the tax law at the
maximum rate authorized by such section.

2. The authority shall not include within any resolution, contract or
agreement with holders of the bonds, notes or other obligations issued
under this title any provision which provides that a default occurs as a
result of the city exercising its right to amend, repeal, modify or
otherwise alter such taxes, fees or appropriations. Nothing in this
title shall be deemed to obligate the city to make any payments or
impose any taxes; except that, if the city imposes sales and
compensating use taxes, it shall do so pursuant to subdivision (a) of
section twelve hundred ten of the tax law at the maximum rate authorized
by such section.