N.Y. Rapid Trans. Law § 42 Contract For Construction Or Operation

• Library: New York Statutes
• Edition: 2023
• Currency: Current through 2023 NY Law Chapter 777
• Year: 2023
• Citation: N.Y. Rapid Trans. Law § 42

a. Every contract for the construction or operation of such road shall provide by proper stipulations and covenants on the part of the city, that the city shall secure and assure to the contractor, so long as the contractor shall perform the stipulations of the contract, the right to construct or to operate the road as prescribed in the contract, free of all right, claim or other interference, whether by injunction, suit for damages or otherwise, on the part of the owner, abutting owner, or other person. The person bidding or contracting for the construction, equipment, maintenance or operation of the railroad included in any such contract shall make such deposit of cash or securities and shall give a bond to such city, in such amount as the board of transportation shall require, and with sureties to be approved by such board, who shall justify each in double the amount of his liability upon such bond. Such bond shall be a continuing security, and shall provide for the prompt payment by such contractor, of the amount of annual rental, if any, specified in the aforesaid contract, and also for the faithful performance by such contractor of all the conditions, covenants and requirements specified and provided for in such contract. In lieu of such continuing bond such contractor, upon the approval of the board of transportation, may deposit with the comptroller cash equal in amount to the entire amount of such bond or securities which are lawful for the investment of the funds of savings banks within this state and are worth not less than the entire amount of such bond. If such bond shall have been given then after the deposit of cash and securities in lieu thereof as aforesaid, and the approval thereof by such board, such bond shall be surrendered by the city to the contractor duly canceled by the comptroller. In the event of the deposit of cash or securities as aforesaid, the contract may provide for the payment to the contractor of the income of such securities or of interest upon such moneys at a rate not higher than the highest rate received by the city upon the deposit of its funds with banks, and may also provide for withdrawal of securities so deposited upon deposit of cash or securities of the same value, provided that all such securities shall be such as are so lawful for the investment of the funds of savings banks. The board of transportation, in or by any such contract and in its discretion, may require, and the rapid transit act shall be deemed to have authorized the board of transportation or ...