§ 1207-j. Limitation on the exercise of powers by authority and lease
renewal. 1. The powers granted and conferred upon the authority by
section twelve hundred seven-a of this title to purchase cars for the
rapid transit lines of the authority, and by section twelve hundred
seven-b of this title to issue bonds and notes of the authority, shall
not be exercised by the authority unless and until the authority and the
city shall have entered into an agreement for the renewal and extension
of the existing agreement of lease between the city and the authority,
dated June first, nineteen hundred fifty-three, for a term of years. Any
such renewal agreement may contain such revisions of the existing
agreement and such additional terms and conditions, not inconsistent
with law, as may be approved by the city and the authority.

2. The city, by resolution of the board of estimate or by instruments
authorized by such resolution, and the authority shall be authorized to
enter into an agreement for the renewal and extension of the existing
agreement of lease between the city and the authority for such term of
years as shall be agreed upon and in any such renewal and extension
agreement the authority may agree to such limitations upon the exercise
of the powers conferred upon it by sections twelve hundred seven-a
through twelve hundred seven-i, inclusive, as the authority in its
discretion shall approve.