Section 13. Municipal taxes of railroads payable to county treasurer

If a
  town,  village  or  city  has  outstanding  unpaid  bonds,  issued,   or
  substituted  for  bonds issued, to aid in the construction of a railroad
  therein, so much of all taxes as shall be  necessary  to  take  up  such
  bonds,  except  school  district  and  highway  taxes,  collected on the
  assessed valuation of such railroad in such municipal corporation, shall
  be paid over to the treasurer of  the  county  in  which  the  municipal
  corporation  is  located. Such treasurer shall purchase with such moneys
  of any town, village or city, such bonds, when they can be purchased  at
  or  below  par, and shall immediately cancel them in the presence of the
  county judge.  If such bonds can not be purchased at or below par,  such
  treasurer shall invest such moneys in the bonds of the United States, of
  the  state of New York, or of any town or village or city of such state,
  issued pursuant to law; and shall hold such bonds as a sinking fund  for
  the  redemption and payment of such outstanding railroad aid bonds. If a
  county treasurer shall unreasonably neglect to comply with this section,
  any taxpayer of the town, village or city having so issued its bonds may
  apply to the  county  judge  of  the  county  in  which  such  municipal
  corporation  is  situated,  for  an  order  compelling such treasurer to
  execute the provisions of this section. Upon  application  of  the  town
  board  of any town, the board of supervisors of the county in which said
  town is situated may authorize payment by the county  treasurer  of  all
  moneys  thus  paid to him in any year by the railroads mentioned in this
  section, to the supervisor of such town, for its use and benefit; to  be
  applied  either to the purchase of outstanding railroad aid bonds or the
  payment of interest thereon, and any payment  heretofore  made  in  good
  faith  by  the  treasurer of any county to any town or to the supervisor
  thereof, of the taxes received in  any  year  by  such  treasurer,  from
  railroad  corporations  in  that  town, is hereby validated.  The county
  treasurer of any county in which one or more towns  therein  shall  have
  issued  bonds for railroad purposes, shall when directed by the board of
  supervisors or county judge of the  county,  execute  and  file  in  the
  office  of the clerk of the county an undertaking with not less than two
  sureties, approved by such board or judge, to the effect  that  he  will
  faithfully  perform  his  duties  pursuant  to  this section. The annual
  report of a county treasurer  shall  fully  state,  under  the  head  of
  "railroad sinking fund, " the name and character of all such investments
  made  by  him  or  his predecessors, and the condition of such fund. The
  county treasurer of any county after deducting the amount of state taxes
  paid pursuant to this article shall pay the balance of said state  taxes
  to  the  department of audit and control and render a detailed statement
  to such department of the deductions made pursuant to this article.