N.Y. Public Authorities Law § 2799-ffff: Powers and duties of urban development corporation; lease and tramway franchise

§ 2799-ffff. Powers and duties of urban development corporation; lease

and tramway franchise. 1. The corporation shall perform all obligations

of the urban development corporation or any of its subsidiaries with

respect to the development, management and operation of Roosevelt

Island, including, without limitation, all such obligations arising

under the lease and the tramway franchise.

2. The urban development corporation, the division and the corporation

shall each use their best efforts to obtain any required consents to the

assignment of the lease and the tramway franchise from the urban

development corporation to the corporation and to any other assumption

by the corporation of the obligations of the urban development

corporation or any of its subsidiaries under any other contracts,

leases, agreements or instruments entered into by the urban development

corporation, or any such subsidiary, relating to the development,

management or operation of Roosevelt Island (other than any bonds or

notes issued, or mortgages or security agreements held, by the urban

development corporation or any of its subsidiaries) and, upon obtaining

such consents, the corporation and the urban development corporation

shall enter into such agreements and take such actions as shall be

necessary to effectuate such assignments and assumptions, provided that

in order to permit the urban development corporation to recover the

investment which it has heretofore made in the development of Roosevelt

Island, such agreements shall provide appropriate assurances

satisfactory to the urban development corporation (a) for the prompt

payment directly to the urban development corporation of all sums from

time to time due from lessees under the development subleases and all

sums received by the corporation from the city in connection with the

termination of the lease, and (b) for the amending or supplementing of

the development subleases to the extent, if any, necessary to protect

the rights of the holders of any mortgages on the leasehold interests

created thereunder. Nothing in this title shall constitute or authorize

an assignment by the urban development corporation, or any subsidiary

thereof, of any mortgage or security interest held by the urban

development corporation, or any such subsidiary, on any real or personal

property or interest therein on Roosevelt Island or any rights or

obligations of the urban development corporation, or any such

subsidiary, arising under any such mortgage or security agreement,

relieve the urban development corporation of any of its obligations

under any bonds heretofore issued by the urban development corporation,

or otherwise affect the interests of the holders of any such bonds.

3. All revenues, other than state appropriations, derived from the

contracts, leases, agreements or instruments assigned to or assumed by

the corporation pursuant to subdivision two of this section shall be

applied first to the payment of those obligations assigned to or assumed

by the corporation.

4. The urban development corporation and the corporation are hereby

authorized to enter into such agreements with the city as the

corporation shall determine to be appropriate to amend, reform or

supplement the lease, including the development plan referred to

therein, and the tramway franchise in order to carry out the purposes of

this title. The provisions of any general, special or local law

notwithstanding, the city is hereby authorized to enter into any such

agreements with the corporation and the urban development corporation.