New York Laws
Title 3 - Dissolution of Local Government Entities
790 - Debts, Liabilities and Obligations.

ยง 790. Debts, liabilities and obligations. The outstanding debts,
liabilities and obligations of the dissolved local government entity
shall be assumed by the town in which the dissolved entity was situated
and shall be a charge upon the taxable property within the limits of the
dissolved entity, collected in the same manner as town taxes. The town
board shall have all powers with respect to the debts, liabilities and
obligations as the governing body of the dissolved entity possessed
prior to its dissolution, including the power to issue town bonds to
redeem bond anticipation notes issued by the dissolved entity.