§ 91 — Procedure under plan

§ 91. Procedure under plan. a. Upon the completion of such plan, but\nbefore final adoption thereof, the commission shall hold a public\nhearing thereon at which citizens shall be entitled to appear and be\nheard. The commission shall transmit a copy thereof to the board of\nestimate of the city and to each of the railroad companies which owns,\nleases or operates any of the railroads included therein with a request\nfor the statement of the views of such board of estimate and such\nrailroad companies thereon. Such board of estimate and each such\nrailroad company may transmit such views and be heard thereon within a\nperiod of time to be prescribed by the commission. Thereafter the\ncommission, from time to time, may make such changes in or modifications\nof such plan as the commission in its discretion may deem to be\nadvisable. The commission shall then formally adopt the plan and call\nupon each of the railroad companies which owns, leases or operates any\nof the railroads included therein or whose leasehold, contract or other\ninterests are to be acquired to inform it within a period of time to be\nfixed by the commission whether it accepts such plan. Any such plan as\nformally adopted by the commission may provide that the commission, with\nthe approval of the board of estimate, from time to time, shall\ndetermine whether and when a sufficient amount of the securities to be\nadjusted have been deposited under or have otherwise assented to the\nplan to render it advisable to declare the plan operative, and in such\nlatter event the plan shall not be or become operative until so declared\nby the commission with the approval of the board of estimate. If the\nrailroad companies or one or more of them do so accept, or if in the\njudgment of the commission a sufficient number of them so accept as to\njustify carrying out the plan, and if the board of estimate also\napproves the plan, and the plan is or is declared operative in\naccordance with its terms, the board of estimate shall take all such\naction as may be necessary or convenient to carry out the plan. All\ndeeds, assignments or surrenders of leaseholds and contracts and other\ninterests, leases, mortgages, contracts and other documents shall be\napproved by the commission.\n b. The plan may include all the railroads or systems of railroads and\ncontrolling or leasehold interests therein which the commission decides\nshould be included thereunder or may in the first instance include one\nor more railroads or systems of railroads, or controlling or leasehold\ninterests therein and may thereafter, with the approval of the board of\nestimate be amended or supplemented at any time or from time to time,\neither before or after the completion thereof, to include one or more\nadditional railroads or systems of railroads, or controlling or\nleasehold interests therein as the commission may decide, or there may\nbe several plans each comprising different railroads or systems of\nrailroads. The commission, if in its judgment such action is necessary,\nbut only after a public hearing, and with the consent of the board of\nestimate and of each railroad company whose railroads or interests\ntherein are included therein, from time to time may modify such plan\nafter formal adoption thereof. The commission may further extend any\nperiod of time prescribed in this article or by it thereunder with like\nauthority.\n c. The grant of power herein conferred shall embrace, and the words\n"the railroad" as used herein shall be deemed to embrace, contracts and\nleases for the use and operation of railroads, including existing\ncontracts and leases between the city and a railroad company for the\nconstruction, equipment, maintenance and operation of railroads under\nthis chapter; provided, however, that the acquisition of any such\ncontract so made by the city or its transfer to the city shall not\noperate as a merger or cancellation of such contract, unless otherwise\nprovided in the plan, but such contract may be held in trust by the city\nfor the beneficiaries thereunder, including the city, as provided in the\nplan until such time as the obligations in respect thereto under the\nplan shall have been discharged.\n e. Railroads and interests therein may be acquired by the city subject\nto all or any mortgages that may be existing thereon. In the event that\nrailroads or interests therein are acquired in whole or in part subject\nto existing mortgages, all the obligations of any mortgage subject to\nwhich the railroads are acquired in its discretion, may, and if required\nby the terms of such mortgage, shall be assumed by the city, provided,\nthat any such acquisition and assumption shall in no respect increase,\ndiminish, alter or otherwise affect any rights vested in the trustee or\nthe bondholders under any such mortgage.\n f. The plan and any contract, lease or mortgage made in pursuance\nthereof may contain such other terms, conditions and covenants, not\ninconsistent with this article, as the commission or board of estimate\nshall deem to be necessary or advisable, including provision whereby\nelevated railroads or portions thereof acquired by the city may be\nremoved under arrangements between the mortgage trustees and the board\nof estimate.\n g. After the approval of such plan, as provided in this section, and\nthereupon, if the plan is or is declared to be operative in accordance\nwith its terms, the board of estimate may consummate the transaction by\nthe execution and delivery of the deeds of conveyance and instruments of\ntransfer, leases, mortgages, contracts and all other instruments and\ndocuments, necessary or advisable for carrying the plan into effect\nwhich shall be approved by the commission.\n h. All the provisions of this article and all powers hereby granted\nwith reference to railroads and properties and interests therein shall\nlikewise apply with equal force and effect to recaptured railroads;\nprovided, however, that nothing contained in this article with respect\nto recapture or recaptured railroads shall alter or affect any rights or\nremedies of the city or of any railroad company under any existing\ncontract.\n i. If, pursuant to a plan, the city shall become the owner or holder\nof securities of a corporation owning the railroads to be acquired under\nthe plan, or the securities of a corporation holding the securities of\nsuch owning corporation, or securities to which such railroads are\nsubject, such securities shall be delivered into the custody of the\ncomptroller of the city. The city, acting by the board of estimate or by\nsuch person as the board of estimate may designate, may exercise such\npowers with respect to such securities as might any other holder hereof.\n