New York Public Authorities Code § 1199-GG*2

Governmental capacity of the authority and municipalities
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* § 1199-gg. Governmental capacity of the authority and\nmunicipalities.  The authority, the county and the other municipalities,\nin carrying out their respective powers and duties under this title,\nshall be deemed to be acting in a governmental capacity and in the\nperformance of an essential governmental function.\n  * NB There are 2 § 1199-gg's\n

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