Section 1225-G. Agreement with the transportation authority

(a) To enable
  the fund to realize its public and governmental purpose,  the  fund  may
  enter  into  agreements  with the transportation authority, to which the
  transit authority may be a party, pursuant to which  the  transportation
  authority  may  plan,  design,  construct, acquire, extend, reconstruct,
  rehabilitate, modernize, or otherwise improve any transit facility,  and
  the  fund  may  lease  any such transit facility from the transportation
  authority. The fund may apply the resources of the fund to  the  payment
  of  rentals  and other payments required from the fund by any such lease
  or other agreement and may pledge such resources as  security  for  such
  payments  to the transportation authority with respect to such leases or
  other agreements.
    (b) To further enable the fund to realize its public and  governmental
  purpose,  the  fund  may  enter  into agreements with the transportation
  authority, to which the transit authority may be a party, for  planning,
  design and feasibility studies, provided or caused to be provided by the
  transportation authority.
    (c)  Neither  the state, nor the city, nor the transit authority shall
  be liable for any rentals or other payments payable by the fund  to  the
  transportation  authority  pursuant  to  the terms of any lease or other
  agreement entered into by the fund under this title; and the city  shall
  not  be  required  to  pay  for  all  or part of the cost of any transit
  facility provided pursuant to  this  title.  Any  such  lease  or  other
  agreement shall contain among its terms a statement to that effect.
    (d)  A schedule of transit facilities authorized to be provided by the
  fund in accordance with the provisions of this title may be  adopted  as
  hereinafter  provided,  and  the  fund shall not enter into any lease or
  other agreement obligating the fund to pay money to  the  transportation
  authority unless such lease or other agreement shall relate to a transit
  facility  contained  in  such  schedule;  nor  unless,  in the case of a
  transit facility which consists of a rapid transit railroad  or  portion
  thereof,  a  route and general plan for such transit facility shall have
  been previously approved pursuant to the provisions of the rapid transit
  law. The mayor, city council and city board of estimate shall  have  the
  power  to  adopt,  veto,  and amend such schedule and the amounts stated
  therein in the same manner provided under the city charter  for  capital
  projects. Such schedule shall not be deemed a part of the city's capital
  budget  and  the transit facilities contained in such schedule shall not
  be deemed city  capital  projects.  Such  schedule  shall  be  published
  together  with  the  capital  budget  accompanied by a statement to this
  effect. Such schedule shall specify the maximum amount  of  indebtedness
  secured by and payable from rental or other payments receivable from the
  fund  which  the transportation authority may incur with respect to each
  transit facility therein set forth. The fund shall not  enter  into  any
  lease  or  other  agreement  which  provides  or  contemplates  that the
  transportation authority shall incur such indebtedness  (i)  which,  for
  any  such  transit  facility  would exceed the amounts specified in such
  schedule, which amount shall not  be  reduced  or  rescinded  except  by
  amendment  and  shall  in  no  event be reduced or rescinded by the city
  after such lease or  other  agreement  has  been  executed  without  the
  written  consent  of  the  transportation authority, or (ii) which would
  bring the aggregate amount of such indebtedness  of  the  transportation
  authority  incurred pursuant to this title to an amount in excess of two
  hundred fifty million  dollars.  Notwithstanding  any  other  limitation
  herein  prescribed, the mayor shall increase the amount so specified for
  any such transit facility by the  amount  necessary  to  pay  judgments,
  claims  or  awards including interest thereon against the transportation
  authority arising out of work undertaken pursuant to any such agreement,

  and the mayor may increase the amount so  specified  by  not  more  than
  fifteen  per  cent  in order to meet any costs required to complete such
  transit facility, or by any amount required  to  complete  such  transit
  facility  when  the cost to complete such transit facility has increased
  due to catastrophe. In the event  that  the  mayor  shall  increase  the
  amount  so  specified  for  any  such  transit  facility  for any of the
  foregoing reasons, the  limitation  on  the  aggregate  amount  of  such
  indebtedness of the transportation authority which may be outstanding at
  any  one  time shall be increased by the same amount. In calculating the
  aggregate amount of such indebtedness of  the  transportation  authority
  which  may  be increased pursuant to this title, there shall be excluded
  the amount of outstanding obligations to be refunded  or  received  from
  the  proceeds  from the sale of, or to be exchanged for new obligations.
  Nothing herein contained shall be construed to require the fund  or  the
  transportation  authority  to  enter  into  any lease or other agreement
  relating to one or more of the  transit  facilities  contained  in  such
  schedule.