Section 1207-J. Limitation on the exercise of powers by authority and lease renewal

1. The powers granted  and  conferred  upon  the  authority  by  section  twelve  hundred  seven-a of this title to purchase cars for the
  rapid transit lines of the authority,  and  by  section  twelve  hundred
  seven-b  of  this title to issue bonds and notes of the authority, shall
  not be exercised by the authority unless and until the authority and the
  city shall have entered into an agreement for the renewal and  extension
  of  the  existing agreement of lease between the city and the authority,
  dated June first, nineteen hundred fifty-three, for a term of years. Any
  such renewal agreement  may  contain  such  revisions  of  the  existing
  agreement  and  such  additional  terms and conditions, not inconsistent
  with law, as may be approved by the city and the authority.
    2. The city, by resolution of the board of estimate or by  instruments
  authorized  by such resolution, and the authority shall be authorized to
  enter into an agreement for the renewal and extension  of  the  existing
  agreement  of  lease between the city and the authority for such term of
  years as shall be agreed upon and in  any  such  renewal  and  extension
  agreement  the authority may agree to such limitations upon the exercise
  of the powers conferred upon  it  by  sections  twelve  hundred  seven-a
  through  twelve  hundred  seven-i,  inclusive,  as  the authority in its
  discretion shall approve.