§ 101.00 Giving or loaning of municipal credit and contracting
indebtedness other than for municipal purposes prohibited. a. No
municipality, school district or district corporation shall:

1. Give or loan its credit to or in aid of any individual, or public
or private corporation or association, or private undertaking, or

2. Contract indebtedness except for the purposes of such municipality,
school district or district corporation.
Notwithstanding the foregoing provisions of this paragraph:

1. If any municipality or any county or town on behalf of an
improvement district is authorized by a general law or by a special law
(a) to provide a supply of water, in excess of its own needs, for sale
to any other public corporation or improvement district, (b) to provide
facilities, in excess of its own needs, for the conveyance, treatment
and disposal of sewage, from any other public corporation or improvement
district, or (c) to provide facilities, in excess of its own needs, for
drainage purposes from any other public corporation or improvement
district, the indebtedness contracted by the municipality for such an
object or purpose shall be deemed to be for a county, city, town or
village purpose, as the case may be.

2. If any two or more municipalities and county and town improvement
districts are authorized by a general law or by a special law (a) to
provide for a common supply of water, (b) to provide for the common
conveyance, treatment and disposal of sewage or (c) to provide for a
common drainage system, the joint indebtedness, or the several
indebtedness for a specific proportion of the cost, contracted by the
municipality for such an object or purpose shall be deemed to be for a
county, city, town or village purpose, as the case may be.

3. If any two or more municipalities and school districts and county
and town improvement districts are authorized by a general law or by a
special law to join together to provide any municipal facility, service,
activity or undertaking which each of such units has the power to
provide separately, the joint indebtedness, or the several indebtedness
for a specific proportion of the cost, contracted by the municipality or
school district for such an object or purpose shall be deemed to be for
county, city, town, village or school district purpose, as the case may
be.

b. This section shall not be deemed to prevent:

1. A county from contracting indebtedness for the following purposes:

(a) Advancing to a city, town or school district, pursuant to law, the
amount of unpaid taxes.

(b) Financing tax refunds required to be made by section seven hundred
twenty-six of the real property tax law.

(c) Paying to the state the state tax levied against such county.

2. A town from contracting indebtedness for the following purposes:

(a) Advancing to a county or school district, pursuant to law, the
amount of unpaid taxes.

(b) Paying to a county such town's share of the state tax levied
against such county if such town is required by law to levy and collect
such tax.

3. A city from contracting indebtedness for the following purposes:

(a) Advancing to a county or school district, pursuant to law, the
amount of unpaid taxes.

(b) Paying to a county such city's share of the state tax levied
against such county if such city is required by law to levy and collect
such tax.

4. A municipality from making such provision for the aid, care and
support of the needy, including the aid, care and support of neglected
and dependent children and of the needy sick, as may be authorized by
law.

5. A county, city or town from providing, pursuant to law, for the
care, support, maintenance and secular education of inmates of orphan
asylums, homes for dependent children or incarcerated individuals in
correctional institutions and of children placed in family homes by
authorized agencies, whether under public or private control.

6. A municipality or school district, when authorized by law, from
using its credit for

(a) The examination or inspection of any school or institution of
learning wholly or in part under the control or direction of any
religious denomination, or in which any denominational tenet or doctrine
is taught, or

(b) The transportation of children to and from any school or
institution of learning.

7. A city, town or village from giving or loaning its credit when
authorized to do so by the legislature pursuant to the provisions of
article eighteen of the state constitution.

8. A county, city or town from increasing, pursuant to law, pension
benefits payable to retired members of a police department or fire
department or to widows, dependent children or dependent parents of
members or retired members of a police department or fire department.

9. A municipality, school district or district corporation from
increasing, pursuant to law, the amount of pension of any member of a
retirement system of the state, or of a subdivision of the state.

10. A municipality, school district or district corporation from
providing, pursuant to law, for the protection by insurance or otherwise
against the hazards of unemployment, sickness and old age.

11. A municipality or school district from providing, pursuant to law,
for the education and support of the blind, the deaf, the mute, the
physically handicapped and juvenile delinquents or for health and
welfare services for all children.

12. A city, town or village from expending or loaning its money,
property or credit as consideration for the effectuation of all or part
of the public purpose provided for in sections eleven-a and thirty-six-a
of the private housing finance law.

13. A municipality from making loans of money or credit to or in aid
of any eligible corporation or association for the purpose of providing
hospital or other facilities for the prevention, diagnosis or treatment
of human disease, pain, injury, disability, deformity or physical
condition, and for facilities incidental or appurtenant thereto, as may
be authorized by law pursuant to section seven of article seventeen of
the state constitution.