§ 2799-FFFF — Powers and duties of urban development corporation; lease and tramway franchise

§ 2799-ffff. Powers and duties of urban development corporation; lease\nand tramway franchise. 1. The corporation shall perform all obligations\nof the urban development corporation or any of its subsidiaries with\nrespect to the development, management and operation of Roosevelt\nIsland, including, without limitation, all such obligations arising\nunder the lease and the tramway franchise.\n 2. The urban development corporation, the division and the corporation\nshall each use their best efforts to obtain any required consents to the\nassignment of the lease and the tramway franchise from the urban\ndevelopment corporation to the corporation and to any other assumption\nby the corporation of the obligations of the urban development\ncorporation or any of its subsidiaries under any other contracts,\nleases, agreements or instruments entered into by the urban development\ncorporation, or any such subsidiary, relating to the development,\nmanagement or operation of Roosevelt Island (other than any bonds or\nnotes issued, or mortgages or security agreements held, by the urban\ndevelopment corporation or any of its subsidiaries) and, upon obtaining\nsuch consents, the corporation and the urban development corporation\nshall enter into such agreements and take such actions as shall be\nnecessary to effectuate such assignments and assumptions, provided that\nin order to permit the urban development corporation to recover the\ninvestment which it has heretofore made in the development of Roosevelt\nIsland, such agreements shall provide appropriate assurances\nsatisfactory to the urban development corporation (a) for the prompt\npayment directly to the urban development corporation of all sums from\ntime to time due from lessees under the development subleases and all\nsums received by the corporation from the city in connection with the\ntermination of the lease, and (b) for the amending or supplementing of\nthe development subleases to the extent, if any, necessary to protect\nthe rights of the holders of any mortgages on the leasehold interests\ncreated thereunder. Nothing in this title shall constitute or authorize\nan assignment by the urban development corporation, or any subsidiary\nthereof, of any mortgage or security interest held by the urban\ndevelopment corporation, or any such subsidiary, on any real or personal\nproperty or interest therein on Roosevelt Island or any rights or\nobligations of the urban development corporation, or any such\nsubsidiary, arising under any such mortgage or security agreement,\nrelieve the urban development corporation of any of its obligations\nunder any bonds heretofore issued by the urban development corporation,\nor otherwise affect the interests of the holders of any such bonds.\n 3. All revenues, other than state appropriations, derived from the\ncontracts, leases, agreements or instruments assigned to or assumed by\nthe corporation pursuant to subdivision two of this section shall be\napplied first to the payment of those obligations assigned to or assumed\nby the corporation.\n 4. The urban development corporation and the corporation are hereby\nauthorized to enter into such agreements with the city as the\ncorporation shall determine to be appropriate to amend, reform or\nsupplement the lease, including the development plan referred to\ntherein, and the tramway franchise in order to carry out the purposes of\nthis title. The provisions of any general, special or local law\nnotwithstanding, the city is hereby authorized to enter into any such\nagreements with the corporation and the urban development corporation.\n