§ 7 — Separate units of mass transportation facilities and equipment; authorization; unit lease arrangements; financing; bonds

Section 7. In addition to the powers granted to the authority under section six and all other powers granted by law, the authority shall have the power to establish on a self-liquidating basis one or more separate units of mass transportation facilities and equipment. In establishing such separate units, the authority may enter into one or more unit lease arrangements with such persons, firms and corporations as the authority shall select and franchise. Each such unit lease arrangement shall provide for the following:(i) acquisition by the authority of real property, including easements and rights of way, necessary or desirable for the operation of such units of mass transportation facilities and equipment, parking and other related auxiliary services and facilities;(ii) design, construction and acquisition of mass transportation facilities and equipment;(iii) operation of the mass transportation facilities and equipment so designed, constructed and acquired by a lessee of said facilities and equipment (1) for a period not in excess of forty years, (2) at a rental or lease charge at least sufficient to discharge the authority's financial obligations incurred in connection with said unit of facilities and equipment under the authority's powers, and (3) upon such provisions and conditions as to fares and other matters relating to the conduct and operation of said mass transportation facilities and equipment as the authority and lessee shall agree; and(iv) power in the authority to cancel or terminate said unit lease arrangement at stated times which shall not be less frequent than once in each fiscal year.To meet the expenditures necessary in carrying out the provisions of this section, the authority may issue bonds in accordance with the provisions of clause (2) of the first paragraph of section nineteen and such bonds shall provide, in addition to other provisions allowed under this chapter, that all payments of principal and interest shall be made solely from (i) the rental or lease charges received by the authority under its lease with the lessee of mass transportation facilities and equipment as aforesaid, which said lease may be assigned by the authority to secure the obligations of said bonds; or (ii) in the event the authority terminates said lease from the income derived from operation of said mass transportation facilities and equipment.