Section 304. Actions by or against the city of New York; or against the New York city transit authority; venue

(a) An action by or on behalf of the
  city of New York or any department  thereof  shall  be  brought  in  the
  county  of New York or in the county within said city where the cause of
  action arose.
    (b) An action against the city of  New  York  or  the  New  York  city
  transit  authority shall be brought in the county within said city where
  the cause of action arose. If the cause of action arose outside the city
  of New York, the action shall be brought in the county of New York.