NY Rapid Trans L § 42 (2021)
2021 New York Laws RAT - Rapid Transit Article 5 - Private Construction, Equipment, Maintenance or Operation of Railroads 42 - Contract for Construction or Operation.

§  42.  Contract for construction or operation.  a. Every contract for   the construction or operation of  such  road  shall  provide  by  proper   stipulations  and covenants on the part of the city, that the city shall   secure and assure to the contractor, so long  as  the  contractor  shall   perform  the  stipulations of the contract, the right to construct or to   operate the road as prescribed in the contract, free of all right, claim   or other interference,  whether  by  injunction,  suit  for  damages  or   otherwise,  on  the  part of the owner, abutting owner, or other person.   The person bidding  or  contracting  for  the  construction,  equipment,   maintenance  or  operation of the railroad included in any such contract   shall make such deposit of cash or securities and shall give a  bond  to   such  city, in such amount as the board of transportation shall require,   and with sureties to be approved by such board, who shall  justify  each   in  double  the amount of his liability upon such bond.  Such bond shall   be a continuing security, and shall provide for the  prompt  payment  by   such  contractor,  of  the amount of annual rental, if any, specified in   the aforesaid contract, and also for the faithful  performance  by  such   contractor  of  all the conditions, covenants and requirements specified   and provided for in such contract. In lieu of such continuing bond  such   contractor,  upon  the  approval  of  the  board  of transportation, may   deposit with the comptroller cash equal in amount to the  entire  amount   of  such  bond  or securities which are lawful for the investment of the   funds of savings banks within this state and are worth not less than the   entire amount of such bond. If such bond  shall  have  been  given  then   after  the  deposit of cash and securities in lieu thereof as aforesaid,   and the approval thereof by such board, such bond shall  be  surrendered   by  the  city to the contractor duly canceled by the comptroller. In the   event of the deposit of cash or securities as  aforesaid,  the  contract   may  provide  for  the  payment  to the contractor of the income of such   securities or of interest upon such moneys at a rate not higher than the   highest rate received by the city upon the deposit  of  its  funds  with   banks,  and  may  also provide for withdrawal of securities so deposited   upon deposit of cash or securities of the same value, provided that  all   such securities shall be such as are so lawful for the investment of the   funds  of  savings banks. The board of transportation, in or by any such   contract and in its discretion, may require, and the rapid  transit  act   shall be deemed to have authorized the board of transportation or any of   its  predecessors  to  have required, prior to the sixteenth day of May,   nineteen hundred six, any other security upon any such contract.b. No contract entered into under authority of this chapter  shall  be   assigned  without  the  written  consent of the board of transportation.   Such contractor, with such written  consent  and  upon  such  terms  and   conditions as such board shall prescribe, may either assign the whole of   such  contract  or  separately  the  right or obligation to maintain and   operate such road for the remainder of the term of  years  specified  in   such  contract  and  all  rights  with  respect  to such maintenance and   operation, or included in the leasing provisions of such  contract,  but   subject to all the terms and conditions therein stated. The assignee, in   and  by  such  assignment,  shall  assume  all of the obligations of the   original contractor under or with respect to such leasing provisions and   all  obligations  which  relate  in  any  way  to  such  operation   and   maintenance.  Such  board  before  giving its consent shall be satisfied   that the pecuniary responsibility of the assignee shall be no less  than   that  of  such  original  contractor.  All of the security or securities   which the city shall have received for the performance by  the  original   contractor  of  such  leasing  provisions  and  of all provisions of the   contract with respect to such operation and maintenance  shall  continue   in  full force as provided in such contract or any modification thereof,    as security for the performance by such assignee of all  obligations  of   the contractor under or with respect to such leasing provisions and such   maintenance or operation.c.  It shall be deemed to be part of every such contract that, in case   the board of transportation shall cease to exist,  the  legislature  may   provide  what  public  officer of the city shall exercise the powers and   duties belonging to such board under or by virtue of any such  contract,   and  that  in default of such provision, such powers and duties shall be   deemed to be vested in the mayor of the city. Every such contract  shall   contain  appropriate  terms,  conditions and provisions for safeguarding   the interests of the city in the event of the failure or neglect of such   contractor  to  construct,  equip,  maintain  or  operate  the  railroad   according  to  the  terms of the contract, and such board may bring such   action in the name and in behalf of the city as may be necessary for the   sufficient and just protection of the rights of the city, or  upon  such   terms as seem just to it, and with such person as to such board may seem   proper,  may  make another operating contract and lease of such road for   the residue of the term of the contractor in  default.  Such  board  may   bring  action  in the name and on behalf of the city to recover from the   contractor the amount due from the contractor,  less  the  amount  which   shall  have  been  received  by the city, under or by virtue of such new   contract, and for all other damages sustained by the city by  reason  of   such default.