Section 3867. Agreement with the city

1. The city hereby covenants and
  agrees with the holders of bonds, notes or other obligations  issued  by
  the  authority  pursuant  to  this  title,  that  the city will not take
  actions which limit, alter or impair the rights  and  remedies  of  such
  holders or the security for such bonds, notes or other obligations until
  such  bonds,  notes  or  other  obligations,  together with the interest
  thereon and all costs and expenses in  connection  with  any  action  or
  proceeding  by  or  on  behalf  of  such  holders  are  fully  paid  and
  discharged. The authority is authorized to  include  this  covenant  and
  agreement  of  the city in any agreement with the holders of such bonds,
  notes or other obligations. Nothing contained in  this  title  shall  be
  deemed  to  restrict  the  right of the city to amend, modify, repeal or
  otherwise alter any local  law,  ordinance  or  resolution  imposing  or
  relating to taxes or fees, or appropriations relating thereto, including
  sales  and  compensating  use taxes imposed pursuant to the authority of
  section twelve hundred ten of the tax law,  so  long  as,  after  giving
  effect   to  such  amendment,  modification  or  other  alteration,  the
  aggregate amount as then projected by the authority  of  (i)  sales  and
  compensating  use  taxes  to  be  imposed  pursuant  to the authority of
  section twelve hundred ten of the tax law and paid to the city and  (ii)
  all  net  collections  for  educational  purposes to be set aside by the
  county pursuant to the authority of subdivision (a)  of  section  twelve
  hundred sixty-two of the tax law and paid to the city's dependent school
  district  during  each of the authority's fiscal years thereafter, shall
  be not less than two hundred percent of maximum annual debt  service  on
  authority  bonds then outstanding. The city further covenants and agrees
  that (i) it will not take any action, including the imposition of  sales
  and  compensating  use taxes preempting the county's taxes, to terminate
  or alter the terms of the agreement among the county, the city  and  the
  other  cities  in  the  county  under  subdivision (c) of section twelve
  hundred sixty-two of the tax law that  would  reduce  or  eliminate  the
  amount  of  net  collections  that  the  county  distributes  or  is  to
  distribute  to  the  city  prior  to  June   thirtieth,   two   thousand
  thirty-seven,  without  the  authority's prior approval, and (ii) if the
  city imposes sales and compensating use taxes, it shall do  so  pursuant
  to  subdivision  (a) of section twelve hundred ten of the tax law at the
  maximum rate authorized by such section.
    2. The authority shall not include within any resolution, contract  or
  agreement  with  holders of the bonds, notes or other obligations issued
  under this title any provision which provides that a default occurs as a
  result of the city exercising its right  to  amend,  repeal,  modify  or
  otherwise  alter  such  taxes,  fees  or appropriations. Nothing in this
  title shall be deemed to obligate the  city  to  make  any  payments  or
  impose   any   taxes;  except  that,  if  the  city  imposes  sales  and
  compensating use taxes, it shall do so pursuant to  subdivision  (a)  of
  section twelve hundred ten of the tax law at the maximum rate authorized
  by such section.