N.Y. Gen. Mun. Law § 768

§ 768. Debts, liabilities and obligations. 1. All valid and lawful\ndebts and liabilities existing against a consolidated local government\nentity, or which may thereafter arise or accrue against the consolidated\nlocal government entity, which but for consolidation would be valid and\nlawful debts or liabilities against one or more of the component local\ngovernment entities, shall be deemed and taken to be like debts against\nor liabilities of the consolidated local government entity and shall\naccordingly be defrayed and answered to by it to the same extent, and no\nfurther than, the component local government entities would have been\nbound if no consolidation had taken place.\n 2. The rights of creditors and all liens upon the property of any of\nthe component local government entities of a consolidation shall be\npreserved unimpaired. The respective component entities shall be deemed\nto continue in existence to preserve such rights and liens, and all\ndebts, liabilities and duties of any of the component entities shall\nthenceforth attach to the consolidated local government entity and be\nenforced against it to the same extent as if such debts, liabilities and\nduties had been incurred or contracted by the consolidated local\ngovernment entity.\n 3. All bonds, contracts and obligations of the component entities\nwhich exist as legal obligations shall be deemed like obligations of the\nconsolidated local government entity, and all such obligations as are\nauthorized or required to be issued or entered into shall be issued or\nentered into by and in the name of the consolidated local government\nentity.\n