§ 1207-k. Purchase, financing and lease of cars and rolling stock by
city. 1. Notwithstanding the provisions of any other law, the city may
purchase from the authority, by negotiation and without competitive
bidding, from time to time, all or any part of the cars acquired by the
authority pursuant to section twelve hundred seven-a of this title, and
to pay therefor such price or prices as shall be agreed upon by the city
and the authority provided, however, that such funds paid to the
authority by the city shall be used only for the reimbursement of
principal and interest on the bonds and notes issued by the authority to
finance the cost of such cars.

2. Serial bonds and notes may be issued by the city, pursuant to the
local finance law, to finance the cost of all cars purchased from the
authority pursuant to subdivision one of this section. The maximum
period of probable usefulness of such object or purpose is hereby
determined to be twenty-five years.

3. All cars purchased by the city from the authority pursuant to
subdivision one of this section may be leased by the city to the
authority under the then existing agreement of lease.