§ 7-A — Debt-incurring power of New York city; certain indebtedness for railroads and transit purposes to be excluded

New York § 7-A

• Jurisdiction: New York
• Law CNS: Constitution
• Art. VIII: Local Finances

Text

§ 7-a. In ascertaining the power of the city of New York to contract\nindebtedness, in addition to the indebtedness excluded under any other\nsection of this constitution, there shall be excluded:\n A. The aggregate of indebtedness initially contracted from time to\ntime by the city for the acquisition of railroads and facilities or\nproperties used in connection therewith or rights therein or securities\nof corporations owning such railroads, facilities or rights, not\nexceeding the sum of three hundred fifteen million dollars. Provision\nfor the amortization of such indebtedness shall be made either by the\nestablishment and maintenance of a sinking fund therefor or by annual\npayment of part thereof, or by both such methods. Any indebtedness\nthereafter contracted in excess of such sum for such purposes shall not\nbe so excluded, but this provision shall not be construed to prevent the\nrefunding of any such indebtedness.\n Notwithstanding any other provision of the constitution, the city is\nhereby authorized to contract indebtedness for such purposes and to\ndeliver its obligations evidencing such indebtedness to the corporations\nowning the railroads, facilities, properties or rights acquired, to the\nholders of securities of such owning corporations, to the holders of\nsecurities of corporations holding the securities of such owning\ncorporations, or to the holders of securities to which such acquired\nrailroads, facilities, properties or rights are now subject.\n B. Indebtedness contracted by the city for transit purposes, and not\notherwise excluded, proportionately to the extent to which the current\nnet revenue received by the city from all railroads and facilities and\nproperties used in connection therewith and rights therein owned by the\ncity and securities of corporations owning such railroads, facilities,\nproperties or rights, owned by the city, shall meet the interest and the\nannual requirements for the amortization and payment of such\nnon-excluded indebtedness.\n In determining whether indebtedness for transit purposes may be\nexcluded under this paragraph of this section, there shall first be\ndeducted from the current net revenue received by the city from such\nrailroads and facilities and properties used in connection therewith and\nrights therein and securities owned by the city: (a) an amount equal to\nthe interest and amortization requirements on indebtedness for rapid\ntransit purposes heretofore excluded by order of the appellate division,\nwhich exclusion shall not be terminated by or under any provision of\nthis section; (b) an amount equal to the interest on indebtedness\ncontracted pursuant to this section and of the annual requirements for\namortization on any sinking fund bonds and for redemption of any serial\nbonds evidencing such indebtedness; (c) an amount equal to the sum of\nall taxes and bridge tolls accruing to the city in the fiscal year of\nthe city preceding the acquisition of the railroads or facilities or\nproperties or rights therein or securities acquired by the city\nhereunder, from such railroads, facilities and properties; and (d) the\namount of net operating revenue derived by the city from the independent\nsubway system during such fiscal year. The legislature shall prescribe\nthe method by which and the terms and conditions under which the amount\nof any indebtedness to be excluded hereunder shall be determined, and no\nindebtedness shall be excluded except in accordance with the\ndetermination so prescribed. The legislature may confer appropriate\njurisdiction on the appellate division of the supreme court in the first\njudicial department for the purpose of determining the amount of any\ndebt to be so excluded.\n