(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