Section 4: Separate units of mass transportation facilities and equipment; establishment; lease arrangements
Section 4. (a) In addition to the powers granted to the authority under section 3 and all other powers granted by law, the authority shall have the power to establish on a self-liquidating basis one or more separate units of mass transportation facilities and equipment to furnish, in each instance, express service or local service between specified terminal points and over a fixed route or routes. In establishing such separate units, the authority may enter into one or more unit lease arrangements with such persons, firms and corporations as the authority shall select and franchise. Each such unit lease arrangement shall provide for the following:
(i) Acquisition by the authority of real property, including easements and rights of way, necessary or desirable for the operation of such units of mass transportation facilities and equipment, parking and other related auxiliary services and facilities, by purchase or exercise of the authority's power of eminent domain under paragraph (o) of section 3;
(ii) design, construction and acquisition of mass transportation facilities and equipment;
(iii) operation of the mass transportation facilities and equipment so designed, constructed and acquired by a lessee of said facilities and equipment: (1) for a period not in excess of 40 years; (2) at a rental or lease charge at least sufficient to discharge the authority's financial obligations incurred in connection with said unit of facilities and equipment under the authority's powers as hereinafter set forth in subsection (b); and (3) upon such provisions and conditions as to fares and other matters relating to the conduct and operation of said mass transportation facilities and equipment as the authority and lessee shall agree; and
(iv) power in the authority to cancel or terminate said unit lease arrangement at stated times which shall be not less frequent than once in each calendar year.
(b) To meet the expenditures necessary in carrying out the provisions of this section, the authority may issue bonds in accordance with the provisions of clause (4) of the first paragraph of section 13, and such bonds shall provide, in addition to other provisions allowed under this chapter, that all payments of principal and interest shall be made solely from (1) the rental or lease charges received by the authority under its lease with the lessee of mass transportation facilities and equipment as aforesaid, which said lease may be assigned by the authority to secure the obligations of said bonds; or (2) in the event the authority terminates said lease from the income derived from operation of said mass transportation facilities and equipment; provided, that bonds issued for the purposes of this section shall not be included in the computation of the bonds to which the limitations on amount contained in section 13 shall apply.