§ 9. (a) As additional security for any issue of bonds and/or bond
anticipation notes authorized to be issued by the city of Troy in
accordance with the local finance law or pursuant to this act or
pursuant to title 4 of article 10 of the public authorities law and
issued prior to December 31, 1999, the city council of the city of Troy,
is hereby authorized to irrevocably pledge to the payment of the
principal of and interest on such bonds and/or bond anticipation notes
(i) the city's share of the net collections, as such term is defined in
section 1262 of the tax law, from taxes imposed by the city or by the
county of Rensselaer pursuant to the authority of section 1210 of the
tax law, as amended, or any successor law thereto, and (ii) the city's
share of any moneys received by such city from payments authorized by
subdivision (c) of section 1262 of the tax law made by Rensselaer county
pursuant to a written agreement by and between the city and said county,
or such portion of such net collections or moneys determined by said
city council with the approval of the board at the time of issuance of
said bonds and/or bond anticipation notes to be necessary to so
additionally secure such bonds and/or bond anticipation notes, subject
to the following limitations and conditions: (i) any such pledge shall
become effective on the date of issue of any bonds and/or bond
anticipation notes the payment of which is secured by such pledge, (ii)
any such pledge may be made subject to such terms and conditions, not
inconsistent with this act, as may be determined necessary or
appropriate by such city council, subject however, to any prior rights
to holders or owners of outstanding bonds and/or bond anticipation notes
secured by a pledge of such net collections or moneys, and (iii) any
such pledge shall not be authorized by such city council unless such
city council shall have determined that such pledge is necessary and in
the public interest and such determination by such city council shall
have been approved by the board. Moneys to be received by the city
pursuant to paragraphs (i) and (ii) of this subdivision shall be
deposited, prior to receipt by the city, in the special account
established in the municipal assistance tax fund pursuant to section
92-d of the state finance law. Notwithstanding the previous sentence,
any bond anticipation notes outstanding as of the effective date of this
act which have the irrevocable pledge of moneys received by the city
pursuant to paragraphs (i) and (ii) of this subdivision for the payment
of principal and interest shall continue to have first lien on such
notes until principal and interest have been fully paid.

(b) Any pledge made pursuant to this section shall be valid and
binding from the time when such pledge takes effect, and the net
collections or moneys so pledged and thereafter received by the city
shall be deposited in a segregated account in the debt service fund
established in section eight of this act and shall immediately be
subject to the lien of such pledge without any further act. The lien of
any such pledge shall be valid and binding as against all parties having
claims of any kind in tort, contract or otherwise against the city
irrespective of whether such parties have notice thereof.

(c) The state does hereby pledge and agree with the holders or owners
of any issue of bonds and/or bond anticipation notes secured by such a
pledge that the state will not limit or alter the rights hereby vested
in the city to fulfill the terms of any agreements made with said hold-
ers or owners pursuant to this act, or in any way impair the rights and
remedies of such holders or owners or the security for said bonds and/or
bond anticipation notes until such bonds and/or bond anticipation notes,
together with the interest thereon and all costs and expenses in
connection with any action or proceeding by or on behalf of such holders
or owners are fully paid and discharged; provided however, that this
pledge shall be subject to the reserved right of the state to alter the
base, rate, method of taxation and exemptions from taxation or the
method of distribution of the taxes which may be imposed by the city of
Troy or by Rensselaer county and the net collections or moneys from
which may be pledged pursuant to this act, as additional security for
any issue of bonds and/or bond anticipation notes of such city. The city
is authorized to include this pledge and agreement of the state, subject
to the state's reserved right, in any agreement with the holders or
owners of such bonds and/or bond anticipation notes.