§ 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.