§ 1225-g. Agreement with the transportation authority. (a) To enable
the fund to realize its public and governmental purpose, the fund may
enter into agreements with the transportation authority, to which the
transit authority may be a party, pursuant to which the transportation
authority may plan, design, construct, acquire, extend, reconstruct,
rehabilitate, modernize, or otherwise improve any transit facility, and
the fund may lease any such transit facility from the transportation
authority. The fund may apply the resources of the fund to the payment
of rentals and other payments required from the fund by any such lease
or other agreement and may pledge such resources as security for such
payments to the transportation authority with respect to such leases or
other agreements.

(b) To further enable the fund to realize its public and governmental
purpose, the fund may enter into agreements with the transportation
authority, to which the transit authority may be a party, for planning,
design and feasibility studies, provided or caused to be provided by the
transportation authority.

(c) Neither the state, nor the city, nor the transit authority shall
be liable for any rentals or other payments payable by the fund to the
transportation authority pursuant to the terms of any lease or other
agreement entered into by the fund under this title; and the city shall
not be required to pay for all or part of the cost of any transit
facility provided pursuant to this title. Any such lease or other
agreement shall contain among its terms a statement to that effect.

(d) A schedule of transit facilities authorized to be provided by the
fund in accordance with the provisions of this title may be adopted as
hereinafter provided, and the fund shall not enter into any lease or
other agreement obligating the fund to pay money to the transportation
authority unless such lease or other agreement shall relate to a transit
facility contained in such schedule; nor unless, in the case of a
transit facility which consists of a rapid transit railroad or portion
thereof, a route and general plan for such transit facility shall have
been previously approved pursuant to the provisions of the rapid transit
law. The mayor, city council and city board of estimate shall have the
power to adopt, veto, and amend such schedule and the amounts stated
therein in the same manner provided under the city charter for capital
projects. Such schedule shall not be deemed a part of the city's capital
budget and the transit facilities contained in such schedule shall not
be deemed city capital projects. Such schedule shall be published
together with the capital budget accompanied by a statement to this
effect. Such schedule shall specify the maximum amount of indebtedness
secured by and payable from rental or other payments receivable from the
fund which the transportation authority may incur with respect to each
transit facility therein set forth. The fund shall not enter into any
lease or other agreement which provides or contemplates that the
transportation authority shall incur such indebtedness (i) which, for
any such transit facility would exceed the amounts specified in such
schedule, which amount shall not be reduced or rescinded except by
amendment and shall in no event be reduced or rescinded by the city
after such lease or other agreement has been executed without the
written consent of the transportation authority, or (ii) which would
bring the aggregate amount of such indebtedness of the transportation
authority incurred pursuant to this title to an amount in excess of two
hundred fifty million dollars. Notwithstanding any other limitation
herein prescribed, the mayor shall increase the amount so specified for
any such transit facility by the amount necessary to pay judgments,
claims or awards including interest thereon against the transportation
authority arising out of work undertaken pursuant to any such agreement,
and the mayor may increase the amount so specified by not more than
fifteen per cent in order to meet any costs required to complete such
transit facility, or by any amount required to complete such transit
facility when the cost to complete such transit facility has increased
due to catastrophe. In the event that the mayor shall increase the
amount so specified for any such transit facility for any of the
foregoing reasons, the limitation on the aggregate amount of such
indebtedness of the transportation authority which may be outstanding at
any one time shall be increased by the same amount. In calculating the
aggregate amount of such indebtedness of the transportation authority
which may be increased pursuant to this title, there shall be excluded
the amount of outstanding obligations to be refunded or received from
the proceeds from the sale of, or to be exchanged for new obligations.
Nothing herein contained shall be construed to require the fund or the
transportation authority to enter into any lease or other agreement
relating to one or more of the transit facilities contained in such
schedule.