N.Y. LFN Law § 121.00

§ 121.00 Indebtedness of school districts merged with or annexed to a\nschool district in a city; amount thereof to be included as indebtedness\nof such school district. In ascertaining the power of a school district\nin a city to contract indebtedness the following indebtedness shall be\nincluded as indebtedness of such school district:\n 1. The amount of outstanding indebtedness of school districts which\nmerged to form such school district, whether or not any of such merged\nschool districts, prior to such merger, was a school district in a city,\nand whether or not any of such merged school districts still exist for\nthe purpose of paying off its indebtedness or distributing its property.\n 2. The amount of outstanding indebtedness of any school district which\nwas annexed to such school district, whether or not such annexed school\ndistrict prior to such annexation, was a school district in a city, and\nwhether or not such annexed school district still exists for the purpose\nof paying off its indebtedness or distributing its property.\n 3. The appropriate proportion of the amount of outstanding\nindebtedness of any school district part of which was annexed to such\nschool district, whether or not such partially annexed school district\nwas a school district in a city. Such appropriate proportion of the\namount of such outstanding indebtedness shall be ascertained by\nmultiplying the total amount of such outstanding indebtedness by the\nratio or percentage, as of the time of the annexation, that the full\nvaluation of the portion of the school district annexed bore to the full\nvaluation of the whole of such partially annexed district as it existed\nprior to such annexation.\n