N.Y. Rapid Trans. Law § 90 Commission to Prepare Plan

• Library: New York Statutes
• Edition: 2023
• Currency: Current through 2023 NY Law Chapter 777
• Year: 2023
• Citation: N.Y. Rapid Trans. Law § 90

a. The commission after making the necessary studies and investigations shall prepare a plan for the relief of the emergency which is hereby declared to exist, and for the improvement of transit in any such city. Such plan shall contain provisions which in the judgment of the commission, will accomplish as nearly as may be the following purposes:

1. The acquisition and unification, under public ownership or control, of railroads by purchase and direct conveyance or transfer, or by lease, recapture, assignment of lease, modification or extinguishment of existing contract or by contracts for equipment, maintenance and operation or maintenance and operation, by or under supervision of a board of transportation, or partly by one of such methods and partly by one or more of the others, so that service thereon may be increased, extended and improved to the fullest extent possible,

2. The receipt as soon as practicable by the city of net revenues from the operation of the railroads which will be applicable to the payment of interest and amortization charges on corporate stock or bonds of the city after deduction of all expenses of maintenance and operation, reserves for depreciation and otherwise, interest and amortization charges and other deductions as may be provided in a plan or in any contract or lease made in pursuance of its provisions, and

3. The assuring to the people of the city the continued operation of the railroads at the present or lowest possible fares consistent with their safe and economical operation and the performance by the board of its obligations under any plan and under any lease or contract made in pursuance of its provisions. In case a plan or any amendment thereof or supplement thereto or separate plan adopted with the approval of the board of estimate of the city as provided in this article, shall include any street surface railroads, it may also include any stage coach or omnibus lines, together with the plant, property and equipment thereof, owned or operated in conjunction with, or as a part of the same system as, such street surface railroads.

b.The commission shall include in the plan appropriate provision for the protection of tort creditors; and shall provide for the continuance in original or modified form of any existing plan or provision of railroad companies for employees' pension and sick benefit relief, but such continuance shall in no manner or form impair the actuarial status or benefits of employees who are members of the New York city employees' retirement system. Without limiting the authority and discretion of the commission, it may consider the incorporation in the plan of provisions whereby the title to such railroads as are not already owned by the city and whose ownership thereby is deemed by the commission to be desirable may be vested in the city and whereby rights under existing contracts for the construction, equipment and operation of rapid transit railroads already owned by the city may be acquired by the city. Such title and/or such rights may be vested in the city directly or may first pass through an intervening corporation and then to the city, either free and clear of liens and encumbrances or subject to specified liens and encumbrances, in return for a lease or leases by the city of such railroads and of any other railroads owned by it and such other or additional considerations as the commission may determine with the approval of the board of estimate. In the event of the incorporation of such provisions in the plan the commission shall outline an arrangement whereby outstanding securities of the railroad companies may be retired by application of t...