a. The amount of the liability of a city, town or village on account of any contract for capital or periodic subsidies to a housing authority to be paid subsequent to the then current year shall be deemed indebtedness in the amount of the commuted value of the total of such subsidies remaining unpaid, calculated on the basis of an annual interest rate of four per centum. b. The amount of the liability of a city, town or village arising from a guarantee of the principal of and interest on indebtedness contracted by a housing authority shall be deemed indebtedness in the amount of the face value of the principal thereof remaining unpaid. If only interest is guaranteed, then the amount of liability arising therefrom shall be deemed indebtedness in the amount of the commuted value of the total interest guaranteed and remaining unpaid, calculated on the basis of an annual interest rate of four per centum.
New York Legal Code