§ 1205-A — Surrender of power plants

§ 1205-a. Surrender of power plants. Notwithstanding any other\nprovision of law, in the event the authority shall surrender power\nplants to the city in connection with the sale thereof by the city to a\nthird party, the city shall establish a fund out of the purchase price\nor the installments of purchase price, from which it shall pay to the\nauthority for a period of ten years the sum of five million dollars a\nyear in semi-annual installments of two million five hundred thousand\ndollars each. The first such payment shall be made six months after the\ndate when possession of the power plants is transferred to the purchaser\nof such plants. Such moneys shall be used by the authority to pay, in\npart, for the cost of electricity purchased by the authority for the\noperation of transit facilities.\n Notwithstanding the foregoing provisions, the city may, from time to\ntime, at the request of the authority, prepay to the authority any and\nall of the remaining semi-annual installments due it as aforesaid, when\nthe city and the authority have determined that such prepayment will\nserve the financial needs of the authority. In the event that said fund\nis not sufficient for the prepayment of any such installments, then the\ncity may make up any insufficiency through a budgetary appropriation or\nmay issue serial bonds and notes, pursuant to the local finance law, to\nfinance such insufficiency. The maximum period of probable usefulness\nfor such object or purpose is hereby determined to be three years.\n