N.Y. Public Authorities Law § 1225-g: Agreement with the transportation authority

§ 1225-g. Agreement with the transportation authority. (a) To enable

the fund to realize its public and governmental purpose, the fund may

enter into agreements with the transportation authority, to which the

transit authority may be a party, pursuant to which the transportation

authority may plan, design, construct, acquire, extend, reconstruct,

rehabilitate, modernize, or otherwise improve any transit facility, and

the fund may lease any such transit facility from the transportation

authority. The fund may apply the resources of the fund to the payment

of rentals and other payments required from the fund by any such lease

or other agreement and may pledge such resources as security for such

payments to the transportation authority with respect to such leases or

other agreements.

(b) To further enable the fund to realize its public and governmental

purpose, the fund may enter into agreements with the transportation

authority, to which the transit authority may be a party, for planning,

design and feasibility studies, provided or caused to be provided by the

transportation authority.

(c) Neither the state, nor the city, nor the transit authority shall

be liable for any rentals or other payments payable by the fund to the

transportation authority pursuant to the terms of any lease or other

agreement entered into by the fund under this title; and the city shall

not be required to pay for all or part of the cost of any transit

facility provided pursuant to this title. Any such lease or other

agreement shall contain among its terms a statement to that effect.

(d) A schedule of transit facilities authorized to be provided by the

fund in accordance with the provisions of this title may be adopted as

hereinafter provided, and the fund shall not enter into any lease or

other agreement obligating the fund to pay money to the transportation

authority unless such lease or other agreement shall relate to a transit

facility contained in such schedule; nor unless, in the case of a

transit facility which consists of a rapid transit railroad or portion

thereof, a route and general plan for such transit facility shall have

been previously approved pursuant to the provisions of the rapid transit

law. The mayor, city council and city board of estimate shall have the

power to adopt, veto, and amend such schedule and the amounts stated

therein in the same manner provided under the city charter for capital

projects. Such schedule shall not be deemed a part of the city's capital

budget and the transit facilities contained in such schedule shall not

be deemed city capital projects. Such schedule shall be published

together with the capital budget accompanied by a statement to this

effect. Such schedule shall specify the maximum amount of indebtedness

secured by and payable from rental or other payments receivable from the

fund which the transportation authority may incur with respect to each

transit facility therein set forth. The fund shall not enter into any

lease or other agreement which provides or contemplates that the

transportation authority shall incur such indebtedness (i) which, for

any such transit facility would exceed the amounts specified in such

schedule, which amount shall not be reduced or rescinded except by

amendment and shall in no event be reduced or rescinded by the city

after such lease or other agreement has been executed without the

written consent of the transportation authority, or (ii) which would

bring the aggregate amount of such indebtedness of the transportation

authority incurred pursuant to this title to an amount in excess of two

hundred fifty million dollars. Notwithstanding any other limitation

herein prescribed, the mayor shall increase the amount so specified for

any such transit facility by the amount necessary to pay judgments,

claims or awards including interest thereon against the transportation

authority arising out of work undertaken pursuant to any such agreement,

and the mayor may increase the amount so specified by not more than

fifteen per cent in order to meet any costs required to complete such

transit facility, or by any amount required to complete such transit

facility when the cost to complete such transit facility has increased

due to catastrophe. In the event that the mayor shall increase the

amount so specified for any such transit facility for any of the

foregoing reasons, the limitation on the aggregate amount of such

indebtedness of the transportation authority which may be outstanding at

any one time shall be increased by the same amount. In calculating the

aggregate amount of such indebtedness of the transportation authority

which may be increased pursuant to this title, there shall be excluded

the amount of outstanding obligations to be refunded or received from

the proceeds from the sale of, or to be exchanged for new obligations.

Nothing herein contained shall be construed to require the fund or the

transportation authority to enter into any lease or other agreement

relating to one or more of the transit facilities contained in such

schedule.