2023 New York Laws › RAT - Rapid Transit › Article 8 - Plan for Unification › 91 - Procedure Under Plan.

§  91. Procedure under plan.  a. Upon the completion of such plan, but
  before final adoption  thereof,  the  commission  shall  hold  a  public
  hearing  thereon  at  which  citizens shall be entitled to appear and be
  heard. The commission shall transmit a copy  thereof  to  the  board  of
  estimate  of  the city and to each of the railroad companies which owns,
  leases or operates any of the railroads included therein with a  request
  for  the  statement  of  the  views  of  such board of estimate and such
  railroad companies  thereon.  Such  board  of  estimate  and  each  such
  railroad  company  may transmit such views and be heard thereon within a
  period of time to  be  prescribed  by  the  commission.  Thereafter  the
  commission, from time to time, may make such changes in or modifications
  of  such  plan  as  the  commission  in  its  discretion  may deem to be
  advisable. The commission shall then formally adopt the  plan  and  call
  upon  each  of the railroad companies which owns, leases or operates any
  of the railroads included therein or whose leasehold, contract or  other
  interests  are to be acquired to inform it within a period of time to be
  fixed by the commission whether it accepts such plan. Any such  plan  as
  formally adopted by the commission may provide that the commission, with
  the  approval  of  the  board  of  estimate,  from  time  to time, shall
  determine whether and when a sufficient amount of the securities  to  be
  adjusted  have  been  deposited  under or have otherwise assented to the
  plan to render it advisable to declare the plan operative, and  in  such
  latter event the plan shall not be or become operative until so declared
  by  the  commission  with  the approval of the board of estimate. If the
  railroad companies or one or more of them do so accept,  or  if  in  the
  judgment  of  the commission a sufficient number of them so accept as to
  justify carrying out the  plan,  and  if  the  board  of  estimate  also
  approves  the  plan,  and  the  plan  is  or  is  declared  operative in
  accordance with its terms, the board of estimate  shall  take  all  such
  action  as  may  be  necessary  or convenient to carry out the plan. All
  deeds, assignments or surrenders of leaseholds and contracts  and  other
  interests,  leases,  mortgages,  contracts  and other documents shall be
  approved by the commission.
b. The plan may include all the railroads or systems of railroads  and
  controlling  or leasehold interests therein which the commission decides
  should be included thereunder or may in the first instance  include  one
  or  more  railroads or systems of railroads, or controlling or leasehold
  interests therein and may thereafter, with the approval of the board  of
  estimate  be  amended  or supplemented at any time or from time to time,
  either before or after the completion thereof, to include  one  or  more
  additional   railroads  or  systems  of  railroads,  or  controlling  or
  leasehold interests therein as the commission may decide, or  there  may
  be  several  plans  each  comprising  different  railroads or systems of
  railroads.  The commission, if in its judgment such action is necessary,
  but only after a public hearing, and with the consent of  the  board  of
  estimate  and  of  each  railroad  company  whose railroads or interests
  therein are included therein, from time to time  may  modify  such  plan
  after  formal  adoption  thereof.  The commission may further extend any
  period of time prescribed in this article or by it thereunder with  like
  authority.
c.  The  grant  of power herein conferred shall embrace, and the words
  "the railroad" as used herein shall be deemed to embrace, contracts  and
  leases  for  the  use  and  operation  of  railroads, including existing
  contracts and leases between the city and a  railroad  company  for  the
  construction,  equipment,  maintenance  and operation of railroads under
  this chapter; provided,  however,  that  the  acquisition  of  any  such
  contract  so  made  by  the  city  or its transfer to the city shall not
  operate as a merger or cancellation of such contract,  unless  otherwise

  provided in the plan, but such contract may be held in trust by the city
  for the beneficiaries thereunder, including the city, as provided in the
  plan  until  such  time  as the obligations in respect thereto under the
  plan shall have been discharged.
e. Railroads and interests therein may be acquired by the city subject
  to  all or any mortgages that may be existing thereon. In the event that
  railroads or interests therein are acquired in whole or in part  subject
  to  existing  mortgages,  all the obligations of any mortgage subject to
  which the railroads are acquired in its discretion, may, and if required
  by the terms of such mortgage, shall be assumed by the  city,  provided,
  that  any  such acquisition and assumption shall in no respect increase,
  diminish, alter or otherwise affect any rights vested in the trustee  or
  the bondholders under any such mortgage.
f.  The  plan  and  any  contract, lease or mortgage made in pursuance
  thereof may contain such other  terms,  conditions  and  covenants,  not
  inconsistent  with  this article, as the commission or board of estimate
  shall deem to be necessary or  advisable,  including  provision  whereby
  elevated  railroads  or  portions  thereof  acquired  by the city may be
  removed under arrangements between the mortgage trustees and  the  board
  of estimate.
g.  After  the approval of such plan, as provided in this section, and
  thereupon, if the plan is or is declared to be operative  in  accordance
  with  its terms, the board of estimate may consummate the transaction by
  the execution and delivery of the deeds of conveyance and instruments of
  transfer, leases, mortgages, contracts and  all  other  instruments  and
  documents,  necessary  or  advisable  for  carrying the plan into effect
  which shall be approved by the commission.
h. All the provisions of this article and all  powers  hereby  granted
  with  reference  to railroads and properties and interests therein shall
  likewise apply with equal force  and  effect  to  recaptured  railroads;
  provided,  however,  that nothing contained in this article with respect
  to recapture or recaptured railroads shall alter or affect any rights or
  remedies of the city or of  any  railroad  company  under  any  existing
  contract.
i.  If,  pursuant to a plan, the city shall become the owner or holder
  of securities of a corporation owning the railroads to be acquired under
  the plan, or the securities of a corporation holding the  securities  of
  such  owning  corporation,  or  securities  to  which such railroads are
  subject, such securities shall be delivered  into  the  custody  of  the
  comptroller of the city. The city, acting by the board of estimate or by
  such  person  as  the board of estimate may designate, may exercise such
  powers with respect to such securities as might any other holder hereof.