§ 7-a. In ascertaining the power of the city of New York to contract
indebtedness, in addition to the indebtedness excluded under any other
section of this constitution, there shall be excluded:

A. The aggregate of indebtedness initially contracted from time to
time by the city for the acquisition of railroads and facilities or
properties used in connection therewith or rights therein or securities
of corporations owning such railroads, facilities or rights, not
exceeding the sum of three hundred fifteen million dollars. Provision
for the amortization of such indebtedness shall be made either by the
establishment and maintenance of a sinking fund therefor or by annual
payment of part thereof, or by both such methods. Any indebtedness
thereafter contracted in excess of such sum for such purposes shall not
be so excluded, but this provision shall not be construed to prevent the
refunding of any such indebtedness.

Notwithstanding any other provision of the constitution, the city is
hereby authorized to contract indebtedness for such purposes and to
deliver its obligations evidencing such indebtedness to the corporations
owning the railroads, facilities, properties or rights acquired, to the
holders of securities of such owning corporations, to the holders of
securities of corporations holding the securities of such owning
corporations, or to the holders of securities to which such acquired
railroads, facilities, properties or rights are now subject.

B. Indebtedness contracted by the city for transit purposes, and not
otherwise excluded, proportionately to the extent to which the current
net revenue received by the city from all railroads and facilities and
properties used in connection therewith and rights therein owned by the
city and securities of corporations owning such railroads, facilities,
properties or rights, owned by the city, shall meet the interest and the
annual requirements for the amortization and payment of such
non-excluded indebtedness.

In determining whether indebtedness for transit purposes may be
excluded under this paragraph of this section, there shall first be
deducted from the current net revenue received by the city from such
railroads and facilities and properties used in connection therewith and
rights therein and securities owned by the city: (a) an amount equal to
the interest and amortization requirements on indebtedness for rapid
transit purposes heretofore excluded by order of the appellate division,
which exclusion shall not be terminated by or under any provision of
this section; (b) an amount equal to the interest on indebtedness
contracted pursuant to this section and of the annual requirements for
amortization on any sinking fund bonds and for redemption of any serial
bonds evidencing such indebtedness; (c) an amount equal to the sum of
all taxes and bridge tolls accruing to the city in the fiscal year of
the city preceding the acquisition of the railroads or facilities or
properties or rights therein or securities acquired by the city
hereunder, from such railroads, facilities and properties; and (d) the
amount of net operating revenue derived by the city from the independent
subway system during such fiscal year. The legislature shall prescribe
the method by which and the terms and conditions under which the amount
of any indebtedness to be excluded hereunder shall be determined, and no
indebtedness shall be excluded except in accordance with the
determination so prescribed. The legislature may confer appropriate
jurisdiction on the appellate division of the supreme court in the first
judicial department for the purpose of determining the amount of any
debt to be so excluded.