§ 42. Contract for construction or operation. a. Every contract for
the construction or operation of such road shall provide by proper
stipulations and covenants on the part of the city, that the city shall
secure and assure to the contractor, so long as the contractor shall
perform the stipulations of the contract, the right to construct or to
operate the road as prescribed in the contract, free of all right, claim
or other interference, whether by injunction, suit for damages or
otherwise, on the part of the owner, abutting owner, or other person.
The person bidding or contracting for the construction, equipment,
maintenance or operation of the railroad included in any such contract
shall make such deposit of cash or securities and shall give a bond to
such city, in such amount as the board of transportation shall require,
and with sureties to be approved by such board, who shall justify each
in double the amount of his liability upon such bond. Such bond shall
be a continuing security, and shall provide for the prompt payment by
such contractor, of the amount of annual rental, if any, specified in
the aforesaid contract, and also for the faithful performance by such
contractor of all the conditions, covenants and requirements specified
and provided for in such contract. In lieu of such continuing bond such
contractor, upon the approval of the board of transportation, may
deposit with the comptroller cash equal in amount to the entire amount
of such bond or securities which are lawful for the investment of the
funds of savings banks within this state and are worth not less than the
entire amount of such bond. If such bond shall have been given then
after the deposit of cash and securities in lieu thereof as aforesaid,
and the approval thereof by such board, such bond shall be surrendered
by the city to the contractor duly canceled by the comptroller. In the
event of the deposit of cash or securities as aforesaid, the contract
may provide for the payment to the contractor of the income of such
securities or of interest upon such moneys at a rate not higher than the
highest rate received by the city upon the deposit of its funds with
banks, and may also provide for withdrawal of securities so deposited
upon deposit of cash or securities of the same value, provided that all
such securities shall be such as are so lawful for the investment of the
funds of savings banks. The board of transportation, in or by any such
contract and in its discretion, may require, and the rapid transit act
shall be deemed to have authorized the board of transportation or any of
its predecessors to have required, prior to the sixteenth day of May,
nineteen hundred six, any other security upon any such contract.

b. No contract entered into under authority of this chapter shall be
assigned without the written consent of the board of transportation.
Such contractor, with such written consent and upon such terms and
conditions as such board shall prescribe, may either assign the whole of
such contract or separately the right or obligation to maintain and
operate such road for the remainder of the term of years specified in
such contract and all rights with respect to such maintenance and
operation, or included in the leasing provisions of such contract, but
subject to all the terms and conditions therein stated. The assignee, in
and by such assignment, shall assume all of the obligations of the
original contractor under or with respect to such leasing provisions and
all obligations which relate in any way to such operation and
maintenance. Such board before giving its consent shall be satisfied
that the pecuniary responsibility of the assignee shall be no less than
that of such original contractor. All of the security or securities
which the city shall have received for the performance by the original
contractor of such leasing provisions and of all provisions of the
contract with respect to such operation and maintenance shall continue
in full force as provided in such contract or any modification thereof,
as security for the performance by such assignee of all obligations of
the contractor under or with respect to such leasing provisions and such
maintenance or operation.

c. It shall be deemed to be part of every such contract that, in case
the board of transportation shall cease to exist, the legislature may
provide what public officer of the city shall exercise the powers and
duties belonging to such board under or by virtue of any such contract,
and that in default of such provision, such powers and duties shall be
deemed to be vested in the mayor of the city. Every such contract shall
contain appropriate terms, conditions and provisions for safeguarding
the interests of the city in the event of the failure or neglect of such
contractor to construct, equip, maintain or operate the railroad
according to the terms of the contract, and such board may bring such
action in the name and in behalf of the city as may be necessary for the
sufficient and just protection of the rights of the city, or upon such
terms as seem just to it, and with such person as to such board may seem
proper, may make another operating contract and lease of such road for
the residue of the term of the contractor in default. Such board may
bring action in the name and on behalf of the city to recover from the
contractor the amount due from the contractor, less the amount which
shall have been received by the city, under or by virtue of such new
contract, and for all other damages sustained by the city by reason of
such default.