2006 New York Code - Restrictions on creation and indebtedness of certain corporations.

 
    §  3.  No  municipal  or other corporation (other than a county, city,
  town, village, school district or fire district, or a river improvement,
  river regulating, or drainage district,  established  by  or  under  the
  supervision  of the department of conservation) possessing the power (a)
  to contract indebtedness and (b) to levy taxes  or  benefit  assessments
  upon  real  estate  or to require the levy of such taxes or assessments,
  shall hereafter be established or  created,  but  nothing  herein  shall
  prevent  the  creation  of  improvement districts in counties and towns,
  provided that the county or town or towns in which  such  districts  are
  located  shall  pledge  its or their faith and credit for the payment of
  the principal of and interest on all indebtedness to be  contracted  for
  the  purposes  of  such  districts, and in ascertaining the power of any
  such county or town to contract indebtedness, such indebtedness shall be
  included, unless such indebtedness would, under the provisions  of  this
  article,  be  excluded  in ascertaining the power of a county or town to
  contract indebtedness. No such corporation now existing shall  hereafter
  contract any indebtedness without the consent, granted in such manner as
  may  be  prescribed by general law, of the city or village within which,
  or of the town within any unincorporated area of which any  real  estate
  may  be subject to such taxes or assessments. If the real estate subject
  to such taxes or assessments is wholly within a  city,  village  or  the
  unincorporated  area  of a town, in ascertaining the power of such city,
  village or town to contract indebtedness, there shall  be  included  any
  indebtedness  hereafter  contracted  by  such  corporation,  unless such
  indebtedness would, under the provisions of this article, be excluded if
  contracted by such city, village or town.  If  only  part  of  the  real
  estate subject to such taxes or assessments is within a city, village or
  the  unincorporated  area  of  a town, in ascertaining the power of such
  city, village or town to contract indebtedness, there shall be  included
  the  proportion,  determined  as  prescribed  by  general  law,  of  any
  indebtedness hereafter  contracted  by  such  corporation,  unless  such
  indebtedness would, under the provisions of this article, be excluded if
  contracted by such city, village or town.