Section 1218. Pending actions and proceedings

1. Provision shall be made in
  the  agreement described in section eighteen hundred three of this title
  for the assumption by the city of the payment  of  judgments  or  claims
  based  upon  a  cause of action arising prior to the date of transfer of
  transit facilities.
    2. This title shall not affect any action or proceeding brought by  or
  against  the  board of transportation, transit commission, or the former
  transit construction commissioner, public  service  commission  for  the
  first  district,  or  the board of rapid transit railroad commissioners,
  and, upon application by the authority to the court, the authority shall
  be substituted as a party in such pending action or proceeding and  such
  action  or  proceeding  may be prosecuted or defended in the name of the
  authority.  Any  investigation,  examination  or   hearing   undertaken,
  commenced   or  instituted  by  the  board  of  transportation,  transit
  commission or the former transit construction commissioner or the public
  service commission for the first district or the board of rapid  transit
  railroad  commissioners  before  the  time  this title takes effect, and
  relating to a subject or matter, jurisdiction whereof  was  conveyed  to
  the authority, may be conducted to final determination by the authority.