Section 99-N. Transfer and lease of ferry boats and buses

1. As used in
  this section the term "municipality" shall mean a county, city, town  or
  village.
    2.  Notwithstanding  any  other  law,  general,  special  or  local, a
  municipality, acting through its chief executive officer and  its  chief
  fiscal  officer,  without  further  approval, except, in the case of any
  municipality with respect to which the legislature has declared  that  a
  state  of  financial  emergency  exists,  the  approval of any emergency
  financial control board or similar body established  by  state  law  for
  such  municipality,  may (a) sell or transfer all interest in any or all
  of its ferry boats and buses, except to the extent of any portion of any
  ferry boat or bus financed by federal grants, for consideration  and  on
  such terms and conditions as it may deem appropriate, and obtain a lease
  from  the transferee on such terms and conditions and for such period as
  it may deem appropriate pursuant to which  it  may  operate  such  ferry
  boats  or buses, as the case may be, provided (i) such lease contains an
  option to the municipality to repurchase such interest at the expiration
  of the scheduled lease term  for  nominal  consideration  and  (ii)  the
  aggregate   of   the  regularly  scheduled  rental  payments  which  the
  municipality is obligated to make pursuant to  such  lease  during  each
  twelve  month  period  of  the lease term shall not exceed the aggregate
  amount receivable, whether by principal or interest, by the municipality
  from its transferee  during  each  such  twelve  month  period.  Without
  limitation  of the foregoing, any lease entered into pursuant hereto may
  also contain provisions requiring  the  municipality  to  indemnify  the
  transferee  for, among other things, any loss resulting from the loss or
  destruction of any property which is  the  subject  of  such  lease  and
  requiring  the  municipality  to undertake to replace, repair or restore
  any such property, but such obligations shall not  be  deemed  regularly
  scheduled  rental  payments  for purposes of the preceding sentence; and
  (b) provide compensation to one  or  more  third  parties  for  services
  rendered by them in connection with any such transaction.
    3.  Notwithstanding  any  other  law,  general,  special or local, the
  proceeds from any transaction described in this section may be  used  by
  such municipality for any lawful municipal purpose.
    4.  The  lessor of such property, during the term of any lease thereof
  to a municipality, shall, if the  lessor  shall  have  assigned  to  the
  lessee  all  manufacturers' and other warranties furnished to the lessor
  in connection with its purchase of such  property,  and  except  as  the
  lease  may otherwise provide, have no liability or responsibility to the
  lessee or to third parties for damages to real or personal  property  or
  for  the  destruction  thereof, or for personal injuries or death, based
  upon the use, condition or state of such property, or any part  thereof,
  except  to  the  extent  such lessor may have any such responsibility or
  liability by virtue of its being the manufacturer of such  property,  or
  any part thereof.
    5.  With  respect  to  any  transaction  described  in this section, a
  municipality shall comply with the following standards  and  procedures:
  (i)  notice  of  intention  to negotiate a transaction described in this
  section shall  be  published  in  at  least  one  newspaper  of  general
  circulation,  and a copy thereof shall be mailed to all parties who have
  requested notification from the municipality of its intent to engage  in
  transactions  of this type. Such notice shall describe the nature of the
  proposed transaction and the factors subject to negotiation which  shall
  include,   but  not  be  limited  to,  the  price  to  be  paid  to  the
  municipality; (ii) the municipality shall consider each  proposal  which
  complies  with  the  requirements set forth in the notice; and (iii) the
  municipality shall determine, on the basis of relevant factors, that the

  transaction  negotiated  will  provide   maximum   available   financial
  benefits, consistent with other defined objectives and requirements.