§ 303 — Certificate of approval

§ 303. Certificate of approval. 1. The commissioner of transportation\nand other state agency, if any be authorized by law to do so, shall give\na certificate of approval of the qualification of a railroad corporation\nas a railroad redevelopment corporation if, in the judgment of the\ncommissioner of transportation and such other agency, such qualification\nwill carry out the policy and purposes of section three hundred.\n 2. The certificate of approval shall set forth:\n (A) The program for the improvement and rehabilitation of the\nfacilities of such corporation which is necessary and reasonable in\norder to carry out the policy and purposes of section three hundred;\n (B) An estimate of the aggregate amount of funds which will be\nrequired in order to pay the costs of such improvement and\nrehabilitation program. The term "costs of the improvement and\nrehabilitation program," when used in this article, shall include the\ninterest and principal payments on any obligations incurred for such\npurpose;\n (C) The amount of working cash which such corporation is entitled to\nhave as a minimum throughout its existence as a railroad redevelopment\ncorporation; and an estimate of the amount of funds, if any, of such\ncorporation which, upon its qualification as a railroad redevelopment\ncorporation, and after provision for such amount of working cash and for\nthe payment of such obligations of the debtor or of its trustee or\ntrustees as shall be specified in the certificate, will be available to\npay the costs of such improvement and rehabilitation program, or if\nthere be a deficiency in such funds, an estimate of the amount thereof;\n (D) The amount of funds which will be made available to such\ncorporation by its stockholders and the additional amount estimated to\nbecome available from other private investors in order to pay the costs\nof such improvement and rehabilitation program;\n (E) The amount of funds which such corporation will require from its\noperating revenues and other income in each year of its existence as a\nrailroad redevelopment corporation in order to pay the costs of such\nimprovement and rehabilitation program, which yearly amounts shall be\nprorated for any other period;\n (F) The limitations, during the period of its existence as a railroad\nredevelopment corporation, upon the payment of interest or principal on\nthe bonds or other indebtedness of such corporation consented to by the\nbondholders or other creditors affected thereby and the limitations,\nduring such period, upon the payment of dividends on the capital stock\nof such corporation, which are necessary and reasonable to carry out the\npolicy and purposes of section three hundred;\n (G) The passenger fares and charges (and the classifications,\nregulations, and practices pertaining thereto) of such corporation\nreasonably required when it qualifies as a railroad redevelopment\ncorporation in order to enable it to have sufficient operating revenues\nand other income to provide for items (1) through (9) enumerated in\nsection three hundred six; and\n (H) Provisions that such corporation shall:\n (1) apply, as soon as practicable,\n (a) the amounts by which its operating revenues and other income\nduring the period of its existence as a railroad redevelopment\ncorporation shall exceed the sums required during such period to provide\nfor items (1) through (8) enumerated in section three hundred six, plus\nor minus, as the case may be,\n (b) the amount of available funds, or of the deficiency therein,\ndetermined pursuant to paragraph (C) of subdivision two, plus\n (c) the amounts received by such corporation from the sources\nspecified in paragraph (D) of subdivision two,\nonly to maintain the amount of working cash determined pursuant to\nparagraph (C) of subdivision two and to the payment of the costs of such\nimprovement and rehabilitation program; and if the aggregate of said\nitems (a), (b) and (c) shall be more than sufficient for that purpose,\nto the payment of the costs of such further additions and betterments of\nsuch corporation's facilities as it may be permitted or directed to make\nby order of the commissioner of transportation;\n (2) upon the termination of its existence as a railroad redevelopment\ncorporation, set aside any of the foregoing amounts not so applied\nduring such period in a separate fund to be used only for such purposes;\nand\n (3) in the event it shall sell any of its capital assets, apply,\nsubject to the provisions of any mortgage or deed of trust covering such\nproperty, the proceeds thereof received during the period of its\nexistence as a railroad redevelopment corporation, at its option, either\nto the payment of the costs of such improvement and rehabilitation\nprogram or of other additions or betterments of its facilities.\n 3. The certificate of approval shall be effective only if such\ncorporation has agreed in writing to comply with the terms and\nconditions of such certificate.\n 4. The provisions of the certificate of approval referred to in\nparagraphs (A) through (E) of subdivision two may be amended at any time\nby the commissioner of transportation, but only with the consent in\nwriting of said corporation, so as to reflect the effects of changes in\nthe estimates of costs and available funds specified therein, or to\npermit changes in the improvement and rehabilitation program. The term\n"certificate of approval," when used in this article, shall mean the\ncertificate of approval as it may be amended from time to time.\n 5. The passenger fares and charges (and the classifications,\nregulations, and practices pertaining thereto) specified in the\ncertificate of approval pursuant to paragraph (G) of subdivision two\nshall be incorporated in tariff schedules filed with the commissioner of\ntransportation to become effective upon the day specified therein, not\nearlier than the day after such qualification, and shall not be subject\nto suspension or alteration by the commissioner of transportation except\npursuant to section three hundred eight.\n 6. Nothing in this article shall be construed as requiring such\ncorporation to apply to such improvement and rehabilitation program any\namounts in excess of, or to carry out such program to any greater extent\nthan permitted by, the aggregate of the items enumerated in subparagraph\n(1) of paragraph (H) of subdivision two.\n