Section 1267-B. Transit facilities for transit construction fund

1.  As
  used in this section, unless a different meaning  clearly  appears  from
  the context:
    a. "City" shall mean the city of New York.
    b.  "Transit construction fund act" shall mean title nine-a of article
  five of this chapter.
    c. "Transit construction fund" shall mean the corporation  created  by
  section one thousand two hundred twenty-five-c of this chapter.
    d.  "Transit  facility"  shall  mean such term as defined from time to
  time in section one thousand two hundred twenty-five-b of this chapter.
    2. In addition to the powers provided elsewhere in this title, and  to
  effectuate  the  purposes  of  the  transit  construction  fund act, the
  authority may:
    a.   Plan,   design,   construct,   acquire,   extend,    reconstruct,
  rehabilitate,  modernize  and  otherwise  improve  transit facilities in
  accordance with the terms and conditions of any lease or other agreement
  with the transit construction fund;
    b. Occupy the streets of the city of New York, without further consent
  or payment, in the  course  of  constructing  and  thereafter  owning  a
  transit  facility  which consists of a rapid transit railroad or portion
  thereof, provided such construction is carried out  in  accordance  with
  the  terms  of  a lease or other agreement with the transit construction
  fund entered into pursuant to the provisions of the transit construction
  fund act;
    c. Make and  execute  contracts,  leases,  subleases,  and  all  other
  instruments or agreements deemed necessary or convenient;
    d.  Authorize the use by the transit construction fund, either with or
  without compensation to the authority or any subsidiary of  the  agents,
  employees and facilities of the authority or any subsidiary;
    e.  Undertake  planning,  design and feasibility studies in accordance
  with the  terms  and  conditions  of  any  agreement  with  the  transit
  construction fund or the city; and
    f. Do any and all other things deemed necessary or convenient.
    3.  All  of  the  provisions  of  this title not inconsistent with the
  provisions of this section shall be applicable with respect to any bonds
  or notes of the authority issued to finance any purpose authorized under
  this section or the  transit  construction  fund  act,  subject  to  the
  following conditions and exceptions:
    a.  Payment of the principal, redemption premium, if any, and interest
  on such bonds and notes shall be made only from monies  payable  to  the
  authority  from  the  transit  construction  fund under a lease or other
  agreement entered  into  pursuant  to  the  provisions  of  the  transit
  construction  fund  act, and any security given by the authority for the
  payment of such principal, redemption premium or interest on such  bonds
  and  notes  shall  be  limited to the monies so payable from the transit
  construction fund. The authority shall not grant any  security  interest
  in  or  otherwise  encumber  any  transit facility leased to the transit
  construction fund.
    b. The provisions of section one thousand two hundred seventy of  this
  chapter,   relating   to   the   creation   and   establishment  of  and
  appropriations and payments to certain debt service reserve funds  shall
  be  inapplicable; provided that nothing herein contained shall be deemed
  to prohibit the creation and establishment of one or more reserve  funds
  for  debt  service  as  authorized  by  section one thousand two hundred
  sixty-nine of this chapter;
    c. In addition to the  statement  required  by  subdivision  eight  of
  section  one thousand two hundred sixty-nine of this chapter, such bonds
  and notes shall contain on the face thereof a statement  to  the  effect

  that the city shall not be liable thereon and that the same shall not be
  a debt of the city.
    4.  Nowithstanding the provisions of any general or special law to the
  contrary, or of any agreement entered into in pursuance thereof relating
  to the repayment of any loan  or  advance  made  by  the  state  to  the
  authority, the authority shall not be required to repay any such loan or
  advance  from  or by reason of the issuance of (i) bonds or notes of the
  authority issued to finance any purpose authorized under this section or
  the transit construction fund act, or the proceeds  realized  upon  such
  issuance, or from (ii) any other funds of the authority derived from the
  transit   construction  fund  or  from  any  other  source  whatever  to
  effectuate the purposes of the transit construction fund act.