N.Y. Gen. Mun. Law § 17

§ 17. Exchange or sale of railroad stock and bonds. The railroad\ncommissioners or officers of a municipal corporation, having the lawful\ncharge and control of any railroad stock or bonds, for or in payment of\nwhich the bonds of such municipal corporation have been lawfully issued\nin aid of such railroad corporation, may exchange the stock or bonds of\nsuch railroad corporation for and in payment of such bonds, or the new\nsubstituted bonds of such municipal corporation, when such exchange can\nbe made for not less than the par value of the stocks or bonds so held\nby them. If they can not make such exchange they may sell such stocks or\nbonds at not less than par; but they may, on the application and with\nthe approval of the governing board of the municipal corporation owning\nsuch stock or bonds, exchange, sell or dispose of such stock or bonds,\nat the best price and upon the best terms obtainable, for the municipal\ncorporation they represent, and shall execute to the purchaser the\nnecessary transfers therefor. All moneys received for any stock or bonds\nshall only be applied to the payment and extinguishment of the bonds of\nthe municipal corporation, lawfully issued in aid of any such railroad,\nor substituted therefor; except that if the bonds so issued or\nsubstituted have all been paid, or the moneys so realized shall be more\nthan sufficient to pay them in full, and all the costs and expenses of\nthe sale, such proceeds or balance thereof shall be paid by the officers\nmaking the sale, to the supervisor of the town, or the treasurer of the\nmunicipal corporation, and applied to such lawful uses as the governing\nboard of the municipal corporation, entitled to the same, may direct.\nThe provisions of this section shall apply to all such commissioners or\nofficers of a municipal corporation elected or appointed or acting under\nthe provisions of any special act, and the authority hereby conferred\nshall not be limited by the provisions of any such special act.\n