N.Y. Public Authorities Law § 1270-c: Metropolitan transportation authority dedicated tax fund

§ 1270-c. Metropolitan transportation authority dedicated tax fund. 1.

The authority shall establish a fund to be known as the "metropolitan

transportation authority dedicated tax fund" which shall be kept

separate from and shall not be commingled with any other moneys of the

authority. The fund shall consist of a "pledged amounts account" and an

"operating and capital costs account" and such other accounts and

subaccounts as the authority may determine.

2. There shall be deposited, pursuant to appropriation, into the fund

the moneys deposited in the dedicated mass transportation trust fund for

payment to the metropolitan transportation authority dedicated tax fund

pursuant to the provisions of subdivision (d) of section three hundred

one-j of the tax law, paragraph two of subdivision (d) of section eleven

hundred nine of the tax law, and any other moneys collected for or

transferred to such fund pursuant to section eighty-eight-a of the state

finance law and any other provision of law directing or permitting the

deposit of moneys in such fund.

3. Moneys in the fund may be (a) pledged by the authority to secure

and be applied to the payment of its bonds, notes or other obligations

specified by the authority and issued to finance (i) transit projects

undertaken for the New York city transit authority and its subsidiaries

and (ii) transportation facilities undertaken for the authority and its

subsidiaries and (b) used for payment of operating costs, and capital

costs, including debt service, reserve requirements, if any, the payment

of amounts required under bond and note facilities or agreements related

thereto, the payment of federal government loans, security or credit

arrangements or other agreements related thereto, and the payment of all

costs related to such obligations, of or for the authority, the New York

city transit authority and their subsidiaries as the authority shall

determine. To the extent moneys in the fund have been pledged by the

authority to secure and pay its bonds, notes or other obligations as

herein provided, moneys deposited into the fund shall first be deposited

into the pledged amounts account to the extent necessary to satisfy the

requirements of any debt service or reserve requirements, if any, of the

resolution authorizing such bonds, notes or other obligations. After

satisfaction of such requirements of the resolution, or if the authority

has not so pledged the moneys in the fund, moneys deposited in the fund

shall be directly deposited into the operating and capital costs account

and, subject to the provisions of any resolutions of the authority not

secured by the pledged amounts account, transferred forthwith to or for

the benefit of the New York city transit authority and its subsidiaries

and the Staten Island rapid transit operating authority (the "TA") and

to and for the benefit of the Long Island Rail Road company and the

Metro-North commuter rail road company (the "CRR") as provided in this

section.

Moneys in the operating and capital costs account which were deposited

in the fund pursuant to appropriation from moneys deposited in the

dedicated mass transportation trust fund for payment to the metropolitan

transportation authority dedicated tax fund pursuant to subdivision (d)

of section three hundred one-j of the tax law or paragraph two of

subdivision (d) of section eleven hundred nine of the tax law (the

"remaining PBT amount") shall be distributed by the authority as

follows: an amount equal to the debt service incurred in such calendar

year as a result of obligations issued and secured by moneys in the

fund, to the extent such debt service is to be paid from money deposited

in the fund pursuant to appropriation from moneys deposited in the

dedicated mass transportation trust fund for payment to the metropolitan

transportation authority dedicated tax fund pursuant to subdivision (d)

of section three hundred one-j of the tax law or paragraph two of

subdivision (d) of section eleven hundred nine of the tax law ("PBT debt

service"), shall be added to the remaining PBT amount. The sum of these

figures shall then be allocated as follows: eighty-five per centum of

such sum shall be allocated to the TA and fifteen per centum of such sum

shall be allocated to the CRR. The amounts so allocated shall then be

reduced respectively by the proportional amount of PBT debt service

attributable to the payments for transit projects undertaken for the TA

and transportation facility projects undertaken for the CRR. The

remaining amounts shall constitute the respective distributable shares

of the remaining PBT amount and shall be distributed to or for the

benefit of the TA and the CRR.

Moneys in the operating and capital costs account which were deposited

in the fund pursuant to section eighty-eight-a of the state finance law

(the "remaining MMTOA amount") shall be distributed by the authority as

follows: an amount equal to the debt service incurred in such calendar

year as a result of obligations issued and secured by money in the fund,

to the extent such debt service is to be paid from money deposited in

the fund pursuant to section eighty-eight-a of the state finance law

("MMTOA debt service"), shall be added to the remaining MMTOA amount.

The sum of these figures shall then be allocated as follows: there shall

be allocated (i) to the TA an amount of such sum which bears the same

proportion to such sum as the amount appropriated and paid during such

calendar year from the metropolitan mass transportation operating

assistance account to the authority for the operating expenses of the TA

bears to the total amounts so appropriated and paid from such operating

assistance account during such calendar year to the TA and CRR combined

and (ii) to the CRR an amount of such sum which bears the same

proportion to such sum as the amount appropriated and paid during such

calendar year from the metropolitan mass transportation operating

assistance account to the CRR bears to the total amounts so appropriated

and paid from such operating assistance account during such calendar

year to the TA and CRR combined. The amounts so allocated shall then be

reduced respectively by the proportional amount of MMTOA debt service

attributable to the payments for transit projects undertaken for the TA

and transportation facility projects undertaken for the CRR. The

remaining amounts shall constitute the respective distributable shares

of the remaining MMTOA amount and shall be distributed to or for the

benefit of the TA and the CRR. In no event shall the authority utilize

any measure or calculation for determining such distributable shares

other than the formula prescribed herein nor shall the authority take

any action which would result in the use of such money which is

different from or inconsistent with the use prescribed in this section.

To the extent that amounts described in the preceding two paragraphs

are distributed more frequently than annually, each such distribution

shall be made as nearly as may be practicable in accordance with the

allocations described above to the TA and the CRR. Within thirty days

after the end of each calendar year, the authority shall certify to the

director of the budget, the chairperson of the senate finance committee

and the chairperson of the assembly ways and means committee, the amount

of money deposited in the fund pursuant to appropriation from moneys

deposited in the dedicated mass transportation trust fund for payment to

the metropolitan transportation authority dedicated tax fund pursuant to

subdivision (d) of section three hundred one-j of the tax law, paragraph

two of subdivision (d) of section eleven hundred nine of the tax law,

and section eighty-eight-a of the state finance law, the amounts

expended from the pledged amounts account for the benefit of the TA and

the CRR, and the amounts of the remaining PBT amount and the remaining

MMTOA amount distributed during the prior calendar year to the TA and

the CRR and specifying in each case the appropriation or appropriations

which was the source of such amounts.

4. Any money deposited in the fund shall be held in the fund free and

clear of any claim by any person arising out of or in connection with

article thirteen-A and article twenty-eight of the tax law. Without

limiting the generality of the foregoing and without limiting the rights

and duties of the commissioner of taxation and finance under article

thirteen-A of the tax law, no petroleum business, as defined in section

three hundred of the tax law, or any other person, including the state,

shall have any right or claim against the authority, any of its

bondholders, the TA or the CRR to any moneys in or distributed from the

fund or in respect of a refund, rebate, credit or reimbursement of taxes

paid under article thirteen-A and article twenty-eight of the tax law.