Section 3-A. Rate of interest on judgments and accrued claims against municipal corporations

1. Except as provided in subdivisions two,  four  and five of this section, the rate of interest to be paid by a municipal
  corporation  upon  any  judgment  or accrued claim against the municipal
  corporation shall not exceed nine per centum per annum.
    2. The rate of interest to be paid upon any judgment or accrued  claim
  against   the   municipal   corporation   arising  out  of  condemnation
  proceedings or action to recover damages for wrongful  death  shall  not
  exceed six per centum per annum.
    3. The term "municipal corporation" as used in this section shall mean
  and  include  a  city,  county,  village,  town,  school  district, fire
  district, a special or public district  organized  for  the  purpose  of
  financing  the  costs  of public improvements or a pension or retirement
  system supported in whole or in part by any such city, county,  village,
  town, school district or special or public district.
    4.  Payments  of interest or principal on any note or bond of the city
  of New York issued on or after the effective date of this act  which  is
  guaranteed  under  the  New York City Loan Guarantee Act of 1978, Public
  Law 95-339, and which such city has not paid or made funds available  to
  pay  when  due, shall accrue interest at the rate borne for principal by
  such obligation from such due date  until  (i)  there  shall  have  been
  deposited  with  an  independent trustee sufficient monies to cover such
  overdue payment and any interest accrued thereon to  the  date  of  such
  deposit  and  (ii)  the making of such deposit shall have been announced
  for three days in succession in a newspaper of  general  circulation  in
  the city of New York.
    5.  Bonds, notes and certificates of participation, and agreements and
  instruments  related  to  the  foregoing,  as  authorized  pursuant   to
  paragraph  (e)  of section 54.10, section 54.90 or section 168.00 of the
  local finance law, or section one hundred nine-b  of  this  chapter  may
  provide  for  the payment of interest on judgments and claims payable to
  or for the account of providers of credit or liquidity support or  their
  successors  in interest, notwithstanding any limitations imposed by this
  section.