N.Y. PBA Law § 553-C

§ 553-c. Additional powers and provisions in relation to railroad and\nrapid transit projects. 1. The authority shall have the power to finance\nall or any part of the costs of railroad and rapid transit costs\nenumerated in paragraphs m, n, o and p of subdivision nine of section\nfive hundred fifty-three of this article through the issuance of its\nnegotiable bonds, notes or other obligations in the manner provided in\nsection five hundred sixty-one of this chapter subject only to the\nfollowing limitations:\n (a) The aggregate principal amount of such bonds, notes or other\nobligations shall not exceed three hundred million dollars\n($300,000,000) excluding (i) bonds issued to fund any reasonably\nrequired debt service reserve fund, and (ii) bonds, notes or other\nobligations issued to refund or otherwise repay bonds, notes or other\nobligations theretofore issued for any of the purposes set forth in this\nsubdivision, and\n (b) Bonds issued for such purposes may be issued as a single issue or\nin series from time to time provided that (i) such issue or each such\nseries shall be scheduled to mature over a term of not less than twenty\nand not more than thirty years, (ii) the aggregate amount of principal\nand interest or principal installments and interest payable in each year\nduring which such principal payments or installments are made or\nprovided for shall not exceed twenty-six million dollars, and (1) with\nrespect to such issue, or (2) with respect to each such series or the\naggregate of all such series, as the authority shall elect, be as nearly\nequal as practicable.\n 2. Moneys expended pursuant to subdivision one of this section shall\nbe utilized insofar as practical to: (a) purchase at least one hundred\ntwenty-four new subway cars for the New York city transit authority, (b)\nrehabilitate at least two hundred eighty existing subway cars for the\nNew York city transit authority, (c) acquire at least fifteen new diesel\nself-propelled railroad passenger cars for the metropolitan\ntransportation authority commuter service area and (d) provide a\npassenger car lay-up yard and other facilities for the Long Island Rail\nRoad in Manhattan. The authority shall either apply for or make\nreasonable effort to secure federal assistance in support of each of the\nprograms herein authorized and to the extent such federal assistance is\nforthcoming and/or other cost savings are realized with respect to any\nsuch program shall have the power to expand the size of that or any of\nthe foregoing programs.\n