No county, town, city, village or authority in this state whether acting alone or jointly with another county, town, city, village or authority or with the state, shall submit to the administrator of civil aeronautics of the United States any project application, under the provisions of section nine (a) of the Act of Congress, approved May thirteenth, nineteen hundred forty-six, being a public law three hundred seventy-seven, seventy-ninth Congress, known and hereinafter designated as the "Federal Airport Act", or any amendment thereto, unless the project and the project application shall have been first approved by the state commissioner of transportation. No such county, town, city, village or authority shall directly accept, receive, receipt for, or disburse any funds granted by the United States under the Federal Airport Act but it must designate such commissioner as its agent, who, on its behalf, shall accept, receive, receipt for and disburse such funds. Every such county, town, city, village or authority shall enter into an agreement with such commissioner prescribing the terms and conditions of such agency in accordance with the federal laws, rules and regulations and applicable laws of this state. Such moneys as are paid over by the United States government shall be retained by the state or paid over to such county, town, city, village or authority upon such terms and conditions as may be imposed by the United States in making such grant.
N.Y. Gen. Mun. Law § 357