§ 33. Acquisition of railroads or interests therein. a. The board of
transportation, with the approval of the board of estimate and the
mayor, may purchase, or acquire an option to purchase from time to time,
for such price and upon such terms and conditions as may be agreed upon,
and acquire by conveyance or grant to such city, to be delivered to such
board of transportation, any line of railroad, or part of any such line
and/or equipment therefor already constructed or provided or in process
of construction or provision, of the character which might be
constructed or provided as a railroad and/or equipment under the
provisions of this chapter, and which in the opinion of the board of
transportation it is for the interest of the public and the city to
acquire for rapid transit purposes. The payment for such line of
railroad, or a part thereof, and equipment may be made out of funds made
available pursuant to the local finance law, or by the application of
revenues derived from the operation of any such line alone or in
conjunction with other railroads owned by such city, or the payment may
be made partly by one method and partly by the other method as the board
of transportation, with the approval of the board of estimate and the
mayor, shall determine. The moneys necessary to be paid for any such
railroad and equipment purchased, together with all expenses necessarily
incurred in connection therewith shall be raised through the application
of revenues from operation as above provided or shall be raised pursuant
to the local finance law. The method of payment for the line to be
purchased shall be described and specified in a form of proposed
contract for purchase and sale which shall be submitted for approval to
the board of estimate and the mayor by the board of transportation. The
form of proposed contract may incorporate such terms and conditions as
provide for a deferred payment of the agreed purchase price. Any such
railroad or equipment acquired in accordance with the provisions of this
section, and any railroad acquired in accordance with the provisions of
article eight of this chapter or former article seven of the public
service law, shall be deemed to have been constructed or provided for at
the expense of the city within the meaning of this chapter and the cost
of acquisition thereof shall be deemed and considered as the cost of
such construction or provision, in like manner as though such railroad
or equipment had been constructed or provided pursuant to the provisions
of this chapter.

b. Unless all the consents to the construction and operation of any
such railroad so purchased required by article three, section seventeen,
of the constitution shall have been obtained prior to such purchase, the
board of transportation shall proceed to secure such consents as
required by section twenty-one of this chapter. As soon as such consents
shall have been obtained, the board of transportation for and on behalf
of the city, with the approval of the board of estimate and the mayor,
may enter into a contract with any person for the equipment, in whole or
in part, at the cost and expense of such person, and for the maintenance
and operation of any such railroad so purchased, either alone or in
conjunction with other railroads then owned or thereafter constructed or
acquired by such city, for a term of years to be specified in the
contract, not to exceed twenty-five years. Such contract may contain a
covenant for one renewal of not to exceed twenty-five years, unless the
purchase price or some part thereof is to be paid out of the revenues as
provided in subdivision a of this section, in which event such contract
may be for a longer period than twenty-five years but shall provide for
its termination by such city, at its option, on one year's notice given
at any time or after the expiration of any specified period not
exceeding ten years, upon the payment by or for such city of the amount
of any balance of such purchase price then remaining unpaid and the
unamortized portion of the cost and expense of any equipment constructed
or provided at the cost of such person after the date of such contract.
Any such contract providing for the payment of the purchase price of any
such railroad or equipment wholly or in part out of the revenues shall
provide for the application of revenues derived from the use or
operation of the railroads included therein and the order of priority of
such application. Such contract shall provide for the payment out of
such revenues of current annual interest charges at a rate of not
exceeding six per cent per annum, and current annual amortization
charges at a rate to be specified, on the amount of the balance of the
purchase price remaining unpaid, of such railroad or equipment so
purchased by such city, and on the actual cost of any equipment,
constructed or provided by such person after the date of such contract.
Every such contract shall contain such terms and conditions as to the
rates of fares to be charged and the character of services to be
furnished and the rental to be paid, or the terms upon which such
railroads are to be operated, as the board of transportation shall deem
to be best suited to the public interests and as the board of estimate
and the mayor shall approve. Any domestic railroad corporation owning
any line of railroad which the city is authorized by this section to
purchase and acquire as above provided, with the consent of the holders
of record of at least two-thirds of its outstanding shares of capital
stock entitled to vote thereon, given as provided in section one hundred
forty-eight of the railroad law, may transfer and convey to such city
such railroad and equipment or any part thereof, and the devices and
appurtenances and franchises thereof or used in connection therewith,
subject, however, to the rights of appraisal of the shares of any
dissenting stockholder as provided in section one hundred sixty-one of
the railroad law.

c. If a contract has been made for equipment, in whole or in part,
maintenance and operation of a railroad constructed or to be constructed
by the city and owned by the city upon any route established and
consented to as provided in this chapter, which contract provides for
construction by the city and equipment, maintenance and operation by the
contractor of branches and extensions of such railroad and additional
lines also to be owned by the city upon terms and conditions as provided
in such contract, the board of transportation in lieu of constructing a
branch or extension or an additional line with the consent of the board
of estimate and of the mayor may acquire by conveyance or grant to such
city to be delivered to such board of transportation the right to
connect such railroad with and to operate within the city over any track
of a railroad already constructed or in process of construction and
which right in the opinion of the board of transportation it is for the
interest of the public and the city to acquire for rapid transit
purposes in lieu of constructing such branch, extension or such
additional lines. The grant shall contain such terms and conditions as
to the compensation to be paid for such right, the term during which it
shall be enjoyed, which with any renewal shall not be more than
twenty-five years, and such other terms and conditions to effectuate the
purpose of the grant, including the right of revocation upon terms and
conditions to be specified in such grant, as the board of transportation
shall deem best suited to the public interest and the board of estimate
and the mayor shall approve.