(a) Railroads and facilities and properties used in connection
therewith and rights therein owned by the city of New York, and
(b) Securities of corporations owning such railroads, facilities,
properties or rights, owned by the city of New York.
b. In ascertaining the power of the city of New York to contract
indebtedness, there may be excluded:
1. Any outstanding indebtedness contracted by the city prior to the
first day of January, nineteen hundred ten, for a dock improvement
proportionately to the extent to which the net revenue received by the
city therefrom during the preceding fiscal year shall have met the
interest on and the annual requirements for the amortization of such
indebtedness during such fiscal year.
2. Any outstanding indebtedness contracted by the city for transit
purposes, and not otherwise excluded, proportionately to the extent to
which the net revenue received by the city during the preceding fiscal
year from all its transit facilities less the total of the items
enumerated in paragraph c of this section shall have met the interest on
and the annual requirements for the amortization and payment of such
non-excluded indebtedness during such fiscal year.
c. In ascertaining the amount of indebtedness for transit purposes
that may be excluded in accordance with the provisions of this section,
there shall be deducted from the net revenue received by the city from
all its transit facilities during such preceding fiscal year:
1. An amount equal to the interest and amortization requirements for
such preceding fiscal year on indebtedness contracted for rapid transit
purposes which indebtedness was excluded in ascertaining the power of
the city to contract indebtedness by order of the appellate division of
the supreme court, first judicial department, prior to January first,
nineteen hundred thirty-nine.
2. An amount equal to (a) the interest for such preceding fiscal year
on that portion of the indebtedness contracted for the acquisition of
transit facilities which is excluded pursuant to paragraph A of section
seven-a of article eight of the state constitution in ascertaining the
power of the city to contract indebtedness, and (b) the requirements for
such preceding fiscal year for amortization on any sinking fund bonds
and the redemption of any serial bonds evidencing such excluded
indebtedness.
3. An amount equal to the sum of all taxes and bridge tolls which
accrued to the city from transit facilities during the fiscal year of
the city preceding the fiscal year in which such transit facilities were
acquired. The transit facilities referred to in this subdivision are
those for the acquisition of which indebtedness was contracted and all
or part of which indebtedness is excluded pursuant to paragraph A of
section seven-a of article eight of the state constitution in
ascertaining the power of the city to contract indebtedness.
4. The amount of net operating revenue derived by the city from the
independent subway system during the fiscal year of the city preceding
the fiscal year in which were acquired the transit facilities referred
to in subdivision three of paragraph c of this section.
d. At any time after the close of a fiscal year of the city, the city
comptroller may, in his discretion, file with the state comptroller a
financial statement for such fiscal year of any dock improvement or of
all the transit facilities, if in the opinion of the city comptroller,
the city has received sufficient net revenue from such dock improvement
or from such transit facilities, as the case may be, to entitle the city
to an exclusion, in accordance with the provisions of this section, of
all or part of the indebtedness contracted for such dock improvement or
for such transit facilities. The city comptroller shall, in his
discretion, determine and set forth in such statement the amount of such
indebtedness which the city seeks to exclude. Such statement shall be in
such form and shall contain such information as shall be prescribed by
the state comptroller and shall be verified by the city comptroller.
e. However, prior to the submission of such financial statement, the
city comptroller shall cause to be published at least once a week for
two weeks in the city record a notice that on the date specified
therein, which date shall be at least two weeks from the date of the
first publication of the notice, such financial statement will be filed
with the state comptroller on the date specified in the notice and the
financial statement which will be filed by the city comptroller with the
state comptroller on the date specified in the notice and a copy of all
documents, computations and other data and information which will be
submitted by the city comptroller to the state comptroller in support of
such financial statement.
f. Upon the receipt of such a financial statement from the city
comptroller, the state comptroller forthwith shall review the facts set
forth therein. The state comptroller shall have the power to examine the
accounts and records of the city with respect to the dock improvement or
the transit facilities, as the case may be. He may also require the city
comptroller and other public officers, boards and agencies to furnish
such additional data and information in their possession which he deems
necessary to enable him to make his determination.
g. The state comptroller shall issue a written certificate setting
forth his determination as to whether the amount of indebtedness which
the city seeks to exclude, or any part thereof, may be excluded. Such
certificate shall constitute the authorization for the exclusion of the
amount of such indebtedness set forth therein, in ascertaining the power
of the city to contract indebtedness and shall be effective until the
close of the fiscal year in which such financial statement shall have
been submitted. If the state comptroller disallows, in whole or in part,
the claim of the city for the exclusion, he shall set forth the reason
for such disallowance. The determination of the state comptroller shall
be conclusive. The certificate of the state comptroller shall be
executed under his hand and seal in duplicate. One of such duplicates
shall be filed in the department of audit and control and the other in
the office of the city comptroller. Both of such duplicates shall be
public records.
Structure New York Laws