N.Y.
Public Authorities Law Section 563
Agreement of the state
1.
The state of New York does pledge to and agree with (a) the holders of the bonds that the state will not limit or alter the rights hereby vested in the authority to maintain, reconstruct and operate the project, to establish and collect such charges and tolls as may be convenient or necessary to produce sufficient revenue to meet the expense of maintenance and operation and to fulfill the terms of any agreements made with the holders of the bonds, or in any way impair the rights and remedies of the bondholders, until the bonds, together with interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders, are fully met and discharged, and(b)
the holders of any bonds of the port authority issued in accordance with the terms of any agreement with the authority authorized hereby to finance the Narrows bridge project or secured in whole or in part by a pledge of the revenues thereof or both so issued and so secured until title to the Narrows bridge is vested in the authority or the city, that the state will not limit or alter the rights hereby vested in the authority to fulfill the terms of any agreements authorized hereby and made with the port authority respecting the Narrows bridge project or in any way impair the rights and remedies of the port authority thereunder until the obligations of the authority thereunder are fully met and discharged.2.
The state of New York does covenant and agree with the holders of any bonds issued after January first, nineteen hundred forty that no tunnel, bridge, parkway, causeway, street, road, highway or other connection for vehicular traffic (other than one of the projects), which will be competitive with the Robert F. Kennedy bridge project or the Whitestone bridge project or the Throgs Neck bridge project or the Marine parkway bridge project or the Cross Bay parkway bridge project will be constructed or maintained until the bonds together with interest thereon, interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders, are fully met and discharged; provided that a tunnel, bridge, parkway, causeway, street, road, highway or other connection for vehicular traffic shall be considered as competitive with the Robert F. Kennedy bridge project or Whitestone bridge project or the Throgs Neck bridge project only if it shall form a connection for vehicular traffic over, under, or across the East river north of an extension to the east of the center line of Seventy-third street in the borough of Manhattan, and shall be considered as competitive with the Marine parkway bridge project or Cross Bay parkway bridge project only if such tunnel, bridge, parkway, causeway, street, road, highway or other connection for vehicular traffic shall form a connection for vehicular traffic with Rockaway peninsula across any part of the waters of Jamaica bay or Rockaway inlet west of seventy-three degrees, forty-six minutes of west longitude. The covenant herein contained restricting competitive traffic connections with any project or projects shall be only for the benefit of the holders of bonds secured in whole or in part by the pledge of the revenues of such project or projects. All covenants of the state made with the holders of bonds issued before January first, nineteen hundred and forty, are hereby confirmed and shall not be affected hereby.3.
The state of New York does pledge to and agree with the holders of any bonds that no tunnel, bridge, parkway, causeway, street, road, highway or other connection for vehicular traffic, which will be competitive with the Queens Midtown tunnel or the Hugh L. Carey tunnel or the Brooklyn Richmond tunnel or the Narrows bridge will be constructed; provided that a tunnel, bridge, parkway, causeway, street, road, highway or other connection for vehicular traffic shall be considered as competitive if it shall form a connection for vehicular traffic over, under or across the East river south of Queensboro bridge, or, if it shall form a connection for vehicular traffic between the boroughs of Manhattan, Brooklyn or Richmond over, under or across New York bay. The covenant herein contained restricting competitive traffic connections with any project or projects shall be only for the benefit of the holders of bonds secured in whole or in part by the pledge of the revenues of such project or projects and subject to and in accordance with all contract provisions with respect to any bonds outstanding on January first, nineteen hundred fifty-five and the rights of the holders of such bonds, the covenant herein contained shall not be deemed to prevent the construction of any bridge or tunnel exclusively for railway rapid transit purposes.
Source:
Section 563 — Agreement of the state, https://www.nysenate.gov/legislation/laws/PBA/563 (updated Sep. 22, 2014; accessed Oct. 26, 2024).
