N.Y. Public Authorities Law § 563: Agreement of the state

§ 563. Agreement of the state. 1. The state of New York does pledge to

and agree with (a) the holders of the bonds that the state will not

limit or alter the rights hereby vested in the authority to maintain,

reconstruct and operate the project, to establish and collect such

charges and tolls as may be convenient or necessary to produce

sufficient revenue to meet the expense of maintenance and operation and

to fulfill the terms of any agreements made with the holders of the

bonds, or in any way impair the rights and remedies of the bondholders,

until the bonds, together with interest thereon, with interest on any

unpaid installments of interest, and all costs and expenses in

connection with any action or proceedings by or on behalf of the

bondholders, are fully met and discharged, and (b) the holders of any

bonds of the port authority issued in accordance with the terms of any

agreement with the authority authorized hereby to finance the Narrows

bridge project or secured in whole or in part by a pledge of the

revenues thereof or both so issued and so secured until title to the

Narrows bridge is vested in the authority or the city, that the state

will not limit or alter the rights hereby vested in the authority to

fulfill the terms of any agreements authorized hereby and made with the

port authority respecting the Narrows bridge project or in any way

impair the rights and remedies of the port authority thereunder until

the obligations of the authority thereunder are fully met and

discharged.

2. The state of New York does covenant and agree with the holders of

any bonds issued after January first, nineteen hundred forty that no

tunnel, bridge, parkway, causeway, street, road, highway or other

connection for vehicular traffic (other than one of the projects), which

will be competitive with the Robert F. Kennedy bridge project or the

Whitestone bridge project or the Throgs Neck bridge project or the

Marine parkway bridge project or the Cross Bay parkway bridge project

will be constructed or maintained until the bonds together with interest

thereon, interest on any unpaid installments of interest, and all costs

and expenses in connection with any action or proceedings by or on

behalf of the bondholders, are fully met and discharged; provided that a

tunnel, bridge, parkway, causeway, street, road, highway or other

connection for vehicular traffic shall be considered as competitive with

the Robert F. Kennedy bridge project or Whitestone bridge project or the

Throgs Neck bridge project only if it shall form a connection for

vehicular traffic over, under, or across the East river north of an

extension to the east of the center line of Seventy-third street in the

borough of Manhattan, and shall be considered as competitive with the

Marine parkway bridge project or Cross Bay parkway bridge project only

if such tunnel, bridge, parkway, causeway, street, road, highway or

other connection for vehicular traffic shall form a connection for

vehicular traffic with Rockaway peninsula across any part of the waters

of Jamaica bay or Rockaway inlet west of seventy-three degrees,

forty-six minutes of west longitude. The covenant herein contained

restricting competitive traffic connections with any project or projects

shall be only for the benefit of the holders of bonds secured in whole

or in part by the pledge of the revenues of such project or projects.

All covenants of the state made with the holders of bonds issued before

January first, nineteen hundred and forty, are hereby confirmed and

shall not be affected hereby.

3. The state of New York does pledge to and agree with the holders of

any bonds that no tunnel, bridge, parkway, causeway, street, road,

highway or other connection for vehicular traffic, which will be

competitive with the Queens Midtown tunnel or the Hugh L. Carey tunnel

or the Brooklyn Richmond tunnel or the Narrows bridge will be

constructed; provided that a tunnel, bridge, parkway, causeway, street,

road, highway or other connection for vehicular traffic shall be

considered as competitive if it shall form a connection for vehicular

traffic over, under or across the East river south of Queensboro bridge,

or, if it shall form a connection for vehicular traffic between the

boroughs of Manhattan, Brooklyn or Richmond over, under or across New

York bay. The covenant herein contained restricting competitive traffic

connections with any project or projects shall be only for the benefit

of the holders of bonds secured in whole or in part by the pledge of the

revenues of such project or projects and subject to and in accordance

with all contract provisions with respect to any bonds outstanding on

January first, nineteen hundred fifty-five and the rights of the holders

of such bonds, the covenant herein contained shall not be deemed to

prevent the construction of any bridge or tunnel exclusively for railway

rapid transit purposes.