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This entry was published on 2014-09-22
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SECTION 91
Procedure under plan
Rapid Transit (RAT) CHAPTER 48-A, ARTICLE 8
§ 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.