N.Y. LFN Law § 85.80

§ 85.80 Authority for municipality or emergency financial control\nboard to file petition under federal statute. A municipality or its\nemergency financial control board in addition to, or in lieu of, filing\na petition under this title, or the city of New York or the New York\nstate financial control board, may file any petition with any United\nStates district court or court of bankruptcy under any provision of the\nlaws of the United States, now or hereafter in effect, for the\ncomposition or adjustment of municipal indebtedness. Nothing contained\nin this title shall be construed to limit the authorization granted by\nthis section. However, no municipality shall file any petition\nauthorized by this section for so long as its local ARRA bonds, as\ndefined in section twenty-four hundred thirty-two of the public\nauthorities law, purchased by the state of New York municipal bond bank\nagency and secured by its pledge of tax revenues pursuant to the\nauthority of section twenty-four hundred thirty-six-b of the public\nauthorities law remain outstanding.\n