§ 99. Withholding of state assistance upon default in payment of bonds
held by the state. When any municipality shall be in default for a
period of more than six months on account of principal of its bonds or
on account of interest on such bonds, or on account of both such
principal and interest, and such bonds shall have been owned for not
less than two years by the state or by the state comptroller in trust,
or for the benefit of the New York state employees' retirement system or
of any fund of the state the allotment, apportionment and payment of
state assistance pursuant to the provisions of article four-A of this
chapter or of section one hundred twelve of the highway law to any such
municipality shall be withheld by the state comptroller in the following
manner. At the time of remittance of any installment or quarterly
payment of such state assistance the comptroller shall withhold payment
of installments or quarterly payments of such state assistance to such
municipality until the indebtedness due from such municipality to the
state or to the state comptroller as trustee or for the benefit of the
New York state employees' retirement system or of any fund of the state
shall be paid in full or until the installments or quarterly payments of
such state assistance or portions thereof so withheld shall equal the
amount so due from the municipality.