N.Y. LFN Law § 121.10

§ 121.10 Indebtedness of school districts merged with or annexed to a\nschool district outside of a city. a. In ascertaining the power of a\nschool district, other than a school district in a city, to issue bonds\nor bond anticipation notes, there shall be included the amount of bonded\nindebtedness of a merged or annexed school district as follows:\n 1. The amount of outstanding bonds and bond anticipation notes of\nschool districts which merged to form such school district, whether or\nnot any of such merged school districts, prior to such merger, had an\naggregate assessed valuation of one hundred thousand dollars or more,\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 bonds and bond anticipation notes of any\nschool district which was annexed to such school district, whether or\nnot such annexed school district, prior to such annexation, had an\naggregate assessed valuation of one hundred thousand dollars or more,\nand whether or not such annexed school district still exists for the\npurpose of paying off its indebtedness or distributing its property.\n 3. The appropriate proportion of the amount of outstanding bonds and\nbond anticipation notes of any school district part of which was annexed\nto such school district, whether or not the aggregate assessed valuation\nof such partially annexed school district, prior to such annexation, was\none hundred thousand dollars or more. Such appropriate proportion of the\namount of such outstanding bonds and bond anticipation notes shall be\nascertained by multiplying the total amount of such outstanding bonds\nand bond anticipation notes by the ratio or percentage, as of the time\nof the annexation, that the average assessed valuation of the portion of\nthe school district annexed bore to the average assessed valuation of\nthe whole of such partially annexed district as it existed prior to such\nannexation.\n