N.Y. RAT Law § 34 — New York Code / Act RAT / Article 4 / Section 34
Issue of bonds by city
Status: in_force

§ 34. Issue of bonds by city. a. For the purpose of providing the\nnecessary means for such construction, or equipment, or both, as the\ncase may be, or acquiring by purchase, at the public expense, of any\nsuch road or subsurface structures, and the necessary means to pay for\nproperty rights which shall be acquired by the city for the purposes of\nthe construction or the operation of any such road as provided in this\nchapter, and the necessary means to pay awards made as provided in this\nchapter for damages for change of grade on any street and to pay the\nexpenses of proceedings to determine such damages, and of meeting the\ninterest on obligations, issued for the purposes of this section,\naccruing thereon prior to the completion and readiness for operation of\nthe portion of such road, and such sub-surface structures, for the\npurchase, construction, or equipment of which such obligations shall\nhave been respectively issued, the mayor, from time to time, as the same\nshall be necessary, upon the requisition of the board of transportation,\nshall make available such sums as may be necessary, upon vouchers\ncertified by the board of transportation. In case any person shall claim\nto be entitled to any money on account of a contract entered into under\nthe terms of this chapter, for the construction of any part of a\nmunicipal railroad and the board of transportation shall fail, neglect\nor refuse to certify a proper or sufficient voucher for the payment of\nthe money so claimed, a proper or sufficient voucher shall not be a\ncondition precedent to the liability of the city, but an action may be\nbrought directly against the city for the recovery of such money as such\nperson may be entitled to. This section shall not affect the powers of\nthe board or its engineers, as set forth in this chapter or as they may\nbe prescribed in any contract entered into pursuant thereto, or to\nchange or alter in any respect the existing rules of law as to the force\nor effect of any certificate which shall have been or may hereafter be\nmade under any contract. This section shall be deemed to apply also to\nany such actions instituted before May sixth, nineteen hundred\ntwenty-one. If bonds are issued by the city for the purposes of this\nsection they may be made payable out of a sinking fund to be established\nand created out of the annual rentals or revenues of such road,\nincluding sub-surface structures, as provided in this chapter. In case\nthe board shall request the mayor to have any part of the work of\nrestoration of street surfaces or property incidental to the\nconstruction of any such road performed by or under the direction of any\nhead of an agency of such city or any subdivision of such city, the\nmayor may set apart out of any appropriation theretofore made under the\nforegoing provisions of this section such amount as the board of\ntransportation may specify and shall make such amount available for the\nuse of such head of such agency for the purposes of such restoration of\nstreet surfaces or property.\n  b. A contract for the construction of such road shall not be made\nunless and until the mayor shall have consented thereto and prescribed a\nlimit to the amount of funds available for the purposes of this section\nwhich shall be sufficient to meet the requirements of such contract in\naddition to all obligations theretofore incurred and to be satisfied\nfrom such funds. The board of transportation of the city of New York, in\nits discretion, may request the mayor to make available either such\namounts from time to time as it shall deem the progress of the work to\nrequire, or the full amount sufficient to pay the entire estimated\nexpenses of executing any contract made pursuant to this chapter. The\ncertificate of the comptroller, mentioned in section 93c-3.0 of the\nadministrative code of the city of New York shall not be necessary to\nmake any such contract binding on the city. Before finally fixing the\nterms and conditions of any contract for any of the purposes contained\nand set forth in this chapter, the board of transportation may set a\ndate or dates for a public hearing upon the proposed terms and\nconditions thereof, at which citizens shall be entitled to appear and be\nheard. No such hearing shall be held, however, until notice thereof\nshall have been published for at least two weeks immediately prior\nthereto in the city record, or other official publication of the city,\nand at least twice in two daily newspapers published in the city. In any\ncase where such a public hearing has been scheduled, it shall be the\nduty of the board of transportation to cause as many copies of a draft\nof the proposed contract to be printed at least two weeks in advance of\nsuch hearing as may be necessary. Such notice of such public hearing\nshall state where copies of such drafts may be obtained upon payment of\na fee, to be fixed by such board, but not to exceed one dollar for each\ncopy. The board, after the hearing to be held as above required, may\nalter, modify or amend such draft contract in any manner in its\ndiscretion.\n  c. A railroad owned or to be owned by the city, and for the\nconstruction of which with public money in whole or in part a contract\nwas or is authorized by this chapter to be entered into as aforesaid,\nshall be a local improvement the cost of which railroad may be met in\nwhole or in part by assessment on the property benefited. The board,\nwith the approval of the board of estimate and of the mayor, shall have\npower to determine whether all or any, and if any, what portion of the\ncost and expense necessary to be incurred for any such road shall be\nassessed upon property benefited thereby, and whether all or any, and if\nany, what portion of the cost and expense necessary to be incurred, or\nwhich shall have been already necessarily incurred, for the acquisition\nof any property for the construction or operation of such railroad shall\nbe assessed upon property benefited by such railroad. An assessment upon\nthe property so benefited may be laid, confirmed, enforced and collected\nin accordance with such determination and pursuant to the provisions of\nthe charter, administrative code of such city and other laws respecting\nassessments for local improvements in such city.\n  d. At any time after the consents have been obtained for any such\nrailroad and the detailed plans and specifications therefor have been\nprepared as authorized and directed by this chapter, the board may\ncertify and transmit to such board of estimate an estimate of the cost\nand expense necessary to be incurred for the construction of such\nrailroad, and for the acquisition of any property, including equipment\nother than rolling stock, that shall be necessary either for the\nconstruction or the operation of such railroad, or from time to time an\nestimate of the cost and expense necessary to be incurred or a statement\nof the cost and expense which has been necessarily incurred for the\nacquisition of any property for the construction or operation of such\nrailroad. With such estimate or statement the board of transportation\nshall transmit a statement which shall show:\n  1. The proportion of such cost and expense, together with the amount\nthereof in money, which should be assessed upon the property benefited;\n  2. The boundaries of the district in such city upon which an\nassessment aggregating such amount should in the opinion of the board be\nlevied, and\n  3. The amount so to be levied in every such district.\nThereupon the board with the approval of the board of estimate and of\nthe mayor, shall have power to, and, if in their judgment the interests\nof the public so require, after publishing a notice at least one week in\nadvance in the City Record and in such other newspapers published in\nsuch city as such board of estimate with the approval of the mayor,\nshall designate as sufficient, stating the time, place and subjects to\nbe considered, and after a joint hearing, pursuant to such notice by and\nbefore the board of transportation and the board of estimate, which may\nbe adjourned from time to time, in accordance with the charter, code,\nand laws aforesaid, they shall fix and determine the boundaries of the\ndistrict upon which such assessment shall be levied, the whole amount or\nproportion of any such cost and expense to be assessed upon property\nbenefited by such improvement, and the amount or proportion of such\nwhole assessment to be levied in such district benefited by such\nimprovement, and take such other and further proceedings as shall be\nnecessary to levy and collect such assessment. Such decision of the\nboard of transportation so approved by the board of estimate and the\nmayor, shall be final as to each matter so fixed and determined and\nshall not be subject to review.\n  e. The board of estimate, with the approval of the mayor, shall\ncertify to the board of assessors of such city the amount of such cost\nand expense so directed to be assessed upon property benefited in each\nsuch district. Such board of assessors shall thereupon proceed forthwith\nto levy and assess such amount upon the real property within the\ndistrict benefited thereby in proportion to the amount of such benefit\nand shall not be limited in the levying of such assessment to one-half\nof the fair value of any house or lot or improved or unimproved land.\nSuch assessment when laid shall be subject to, and protected by, all\nprovisions of the charter and administrative code of such city\napplicable to assessments for local improvements levied pursuant to such\ncharter and code.\n  f. An assessment levied against any property in accordance with this\nsection shall be payable as follows, namely: one-tenth thereof within\nsixty days from the date of the confirmation and entry of each\nassessment and the remainder of such assessment in nine installments as\nnearly equal in amount as may be with interest thereon from the date of\nentry and confirmation at the rate of six per centum per annum in one,\ntwo, three, four, five, six, seven, eight and nine years respectively\nthereafter, but all installments not due may be paid at any time with\ninterest to the date of payment. If any installment and interest thereon\nbe not paid within three years after it shall become due and payable the\nentire assessment less such part thereof as shall have been already\npaid, shall become due and payable and must be immediately collected, or\nthe tax lien therefor sold or enforced in the same manner as other\ndelinquent assessments are required to be collected by the charter,\nadministrative code and other laws of such city.\n  g. Obligations of the city issued in advance of the collection of such\nassessments shall be payable out of the rapid transit construction fund\nas hereinafter directed to be constituted. They shall be a legal\ninvestment for the sinking funds of such city and for trustees and other\nfiduciaries charged with the investment of trust funds.\n  h. All moneys derived from the sale of such obligations, and all\nmoneys derived from the collection of such assessments shall be kept\nseparate and apart from all other funds of the city and shall be known\nas the rapid transit construction fund of such railroad. Unless the\nassessment be made separately for the cost and expense of acquisition of\nproperty as aforesaid, they shall be applied only to the following uses\nand, among such uses, only in the following order as nearly as may be:\n  1. To the cost and expenses of the construction of such railroad and\nthe acquisition of property necessary for such construction, including\nequipment other than rolling stock;\n  2. To the acquisition of real property necessary for the operation\nthereof;\n  3. To the retirement of the obligations therefor.\n  In case an assessment is made separately for the cost and expense\nincurred or to be incurred for the acquisition of any property for the\nconstruction or operation of any such railroad, the money derived from\nthe sale of such obligations, and all moneys derived from the collection\nof such assessment shall be applied only to pay or reimburse the cost\nand expense of acquisition of the property for which such assessment was\nmade or to the retirement of the obligations issued in advance of the\ncollection of such assessment.\n  i. In case of default in the payment of any installment of interest or\nprincipal of any such obligations the holder thereof may require, if\nnecessary, by peremptory order of mandamus, any tax lien of such city\nfor the amount of any assessment upon the property benefited which is\nthen due and payable, to be immediately sold or enforced in accordance\nwith the charter, administrative code and other laws of such city. If at\nsuch time the tax lien so sold shall include, in addition to the lien of\nthe assessment aforesaid, any lien for delinquent taxes or other\nlienable charges due to the city, and if it shall become necessary to\nreduce the amount of the tax lien pursuant to such charter, code and\nlaws of such city, the lien shall not be reduced so as to make it less\nin value than the amount of the assessment aforesaid with the interest\nthereon. Notwithstanding any reduction as aforesaid, the proceeds of the\nsale of such a lien, to the extent of the full amount of the assessment\nand interest, shall be paid into the rapid transit construction fund of\nthe railroad aforesaid, and the balance, if any, shall be applied as\nproceeds of the rest of the tax lien.\n  j. If any assessment shall be reduced for fraud, substantial error or\nother reason, the cost and expense aforesaid may be reassessed, and the\nreassessment shall stand as security for the obligations aforesaid to\nthe same degree and in the same manner as if it had been an original\nassessment. In case any assessment is reduced below its original amount,\nhowever, either the amount to be expended in constructing the railroad\naforesaid and for acquisition of property necessary for construction and\noperation thereof as aforesaid, or to be expended for acquisition of\nproperty, if the assessment reduced is for cost and expense thereof\nseparately, shall be correspondingly reduced or else the difference\nbetween the original assessment and the reassessment shall be paid by\nthe city into the rapid transit construction fund of the railroad\naforesaid, either from current revenue or from sums to be made available\nas the board of estimate shall determine.\n  k. If the cost and expenses of construction of any such railroad and\nfor acquisition of property necessary for construction and operation\nthereof as aforesaid shall be only partially assessed as aforesaid upon\nthe property benefited, no provisions in any contract for the\nconstruction thereof shall become operative until the board of estimate\nand the mayor shall have consented thereto and shall have prescribed a\nlimit to the amount of city funds if any, available for the purpose of\nsuch contract as hereinbefore provided. No provisions in any contract\nfor the construction of any railroad which construction is to be paid\nfor wholly or partly by means of local assessments shall become\noperative until the board of estimate shall have levied an assessment to\nprovide for the construction thereof, and until either assessments shall\nhave been paid in, or obligations issued in advance of the collection of\nsuch assessments, shall have been sold in sufficient amounts when paid\nfor, to cover the cost and expense payable from assessments levied as\naforesaid and until the board of estimate and the mayor shall have\nconsented to such a contract.\n  l. In a case where the moneys collected pursuant to such an assessment\nshall be insufficient to discharge the obligations so issued as\naforesaid, or if the amount arising on the sale of such obligations is\ninsufficient to pay the expenses incurred for the construction of such\nrailroad and for acquisition of property necessary for construction and\noperation thereof as aforesaid, or incurred for acquisition of property,\nif the assessment is for cost and expense thereof separately, the\ndeficiency up to an amount not in excess of ten per centum of the total\namount of the assessment shall be paid by such city into the rapid\ntransit construction fund, either from current revenue or from sums made\navailable as the board of estimate and the mayor shall determine.\n