New York Laws
Title 2 - Consolidation of Local Government Entities
768 - Debts, Liabilities and Obligations.

§ 768. Debts, liabilities and obligations. 1. All valid and lawful
debts and liabilities existing against a consolidated local government
entity, or which may thereafter arise or accrue against the consolidated
local government entity, which but for consolidation would be valid and
lawful debts or liabilities against one or more of the component local
government entities, shall be deemed and taken to be like debts against
or liabilities of the consolidated local government entity and shall
accordingly be defrayed and answered to by it to the same extent, and no
further than, the component local government entities would have been
bound if no consolidation had taken place.

2. The rights of creditors and all liens upon the property of any of
the component local government entities of a consolidation shall be
preserved unimpaired. The respective component entities shall be deemed
to continue in existence to preserve such rights and liens, and all
debts, liabilities and duties of any of the component entities shall
thenceforth attach to the consolidated local government entity and be
enforced against it to the same extent as if such debts, liabilities and
duties had been incurred or contracted by the consolidated local
government entity.

3. All bonds, contracts and obligations of the component entities
which exist as legal obligations shall be deemed like obligations of the
consolidated local government entity, and all such obligations as are
authorized or required to be issued or entered into shall be issued or
entered into by and in the name of the consolidated local government
entity.