N.Y. Public Authorities Law § 1267-b: Transit facilities for transit construction fund

§ 1267-b. Transit facilities for transit construction fund. 1. As

used in this section, unless a different meaning clearly appears from

the context:

a. "City" shall mean the city of New York.

b. "Transit construction fund act" shall mean title nine-a of article

five of this chapter.

c. "Transit construction fund" shall mean the corporation created by

section one thousand two hundred twenty-five-c of this chapter.

d. "Transit facility" shall mean such term as defined from time to

time in section one thousand two hundred twenty-five-b of this chapter.

2. In addition to the powers provided elsewhere in this title, and to

effectuate the purposes of the transit construction fund act, the

authority may:

a. Plan, design, construct, acquire, extend, reconstruct,

rehabilitate, modernize and otherwise improve transit facilities in

accordance with the terms and conditions of any lease or other agreement

with the transit construction fund;

b. Occupy the streets of the city of New York, without further consent

or payment, in the course of constructing and thereafter owning a

transit facility which consists of a rapid transit railroad or portion

thereof, provided such construction is carried out in accordance with

the terms of a lease or other agreement with the transit construction

fund entered into pursuant to the provisions of the transit construction

fund act;

c. Make and execute contracts, leases, subleases, and all other

instruments or agreements deemed necessary or convenient;

d. Authorize the use by the transit construction fund, either with or

without compensation to the authority or any subsidiary of the agents,

employees and facilities of the authority or any subsidiary;

e. Undertake planning, design and feasibility studies in accordance

with the terms and conditions of any agreement with the transit

construction fund or the city; and

f. Do any and all other things deemed necessary or convenient.

3. All of the provisions of this title not inconsistent with the

provisions of this section shall be applicable with respect to any bonds

or notes of the authority issued to finance any purpose authorized under

this section or the transit construction fund act, subject to the

following conditions and exceptions:

a. Payment of the principal, redemption premium, if any, and interest

on such bonds and notes shall be made only from monies payable to the

authority from the transit construction fund under a lease or other

agreement entered into pursuant to the provisions of the transit

construction fund act, and any security given by the authority for the

payment of such principal, redemption premium or interest on such bonds

and notes shall be limited to the monies so payable from the transit

construction fund. The authority shall not grant any security interest

in or otherwise encumber any transit facility leased to the transit

construction fund.

b. The provisions of section one thousand two hundred seventy of this

chapter, relating to the creation and establishment of and

appropriations and payments to certain debt service reserve funds shall

be inapplicable; provided that nothing herein contained shall be deemed

to prohibit the creation and establishment of one or more reserve funds

for debt service as authorized by section one thousand two hundred

sixty-nine of this chapter;

c. In addition to the statement required by subdivision eight of

section one thousand two hundred sixty-nine of this chapter, such bonds

and notes shall contain on the face thereof a statement to the effect

that the city shall not be liable thereon and that the same shall not be

a debt of the city.

4. Nowithstanding the provisions of any general or special law to the

contrary, or of any agreement entered into in pursuance thereof relating

to the repayment of any loan or advance made by the state to the

authority, the authority shall not be required to repay any such loan or

advance from or by reason of the issuance of (i) bonds or notes of the

authority issued to finance any purpose authorized under this section or

the transit construction fund act, or the proceeds realized upon such

issuance, or from (ii) any other funds of the authority derived from the

transit construction fund or from any other source whatever to

effectuate the purposes of the transit construction fund act.