N.Y. General Municipal Law § 99-o: Transfer and lease of mass commuting vehicles by the county of Suffolk

§ 99-o. Transfer and lease of mass commuting vehicles by the county of

Suffolk. 1. As used in this section the term "county" shall mean the

county of Suffolk. The term "mass commuting vehicle" means any bus,

subway car, rail car, locomotive, or similar equipment used or to be

used to provide mass commuting services, whether or not operated by a

private operator under agreement with the county.

2. Any other law, general, special or local notwithstanding, the

county, acting through its chief executive officer or its chief fiscal

officer without further approval, except, in case the legislature has

declared that a state of financial emergency exists in the county, the

approval of any emergency financial control board or similar body

established by state law for such county, may (a) sell or transfer any

interest in any or all of its mass commuting vehicles, except to the

extent of any portion of any mass commuting vehicles financed by federal

grants, for consideration and on such terms and conditions as it may

deem appropriate, and obtain a lease from the transferee on such terms

and conditions and for such period as it may deem appropriate pursuant

to which it may operate such mass commuting vehicles, provided (i) such

lease contains an option to the county to repurchase such interest at

the expiration of the scheduled lease term for nominal consideration and

(ii) the aggregate of the regularly scheduled rental payments which the

county is obligated to make pursuant to such lease during each twelve

month period of the lease term shall not exceed the aggregate amount

receivable, whether in the form of principal or interest, by the county

from its transferee during each twelve month period. Without limitation

of the foregoing, any lease entered into pursuant hereto may also

contain provisions requiring the county to indemnify the transferee for,

among other things, any loss resulting from the loss or destruction of

any property which is the subject of such lease and requiring the county

to undertake to replace, repair or restore any such property, but such

obligations shall not be deemed regularly scheduled rental payments for

purposes of the preceding sentence and (b) provide compensation to one

or more third parties for services rendered by them in connection with

any such transaction.

3. Proceeds from any transaction described in this section may be used

by the county only for the operation, maintenance or acquisition of mass

commuting vehicles or expended on the making of any capital improvements

to be used in connection with mass commuting vehicles, but may be held

and invested alone or with and in the same manner as other revenues of

the county pursuant to law before application to such purposes.

4. The lessor of such property, during the term of any lease thereof

to the county, shall, if the lessor shall have assigned to the county

all manufacturers' and other warranties, if any furnished to the lessor

in connection with its purchase of such property, and except as the

lease may otherwise provide, have no liability or responsibility to the

county or to third parties for damages to real or personal property or

for the destruction thereof, or for personal injuries or death, based

upon the use, condition or state of such property, or any part thereof.