2015 New York Laws
PBA - Public Authorities
Article 5 - PUBLIC UTILITY AUTHORITIES
Title 9 - (1200 - 1221) NEW YORK CITY TRANSIT AUTHORITY
1207 - Notes and equipment trusts.

  1207.  Notes and equipment trusts. 1. The authority may issue notes
  in conformity with applicable provisions of the uniform commercial  code
  in  anticipation  of the receipt of revenues provided that the aggregate
  principal amount of such revenue anticipation notes outstanding  at  any
  time shall not exceed ten per cent of the average annual revenues of the
  authority.  All  such revenue anticipation notes shall mature within two
  years of the date of issue and an installment  or  installments  of  not
  less  than  fifty  per  cent of the principal amount of such notes shall
  mature in the first fiscal year succeeding the fiscal year in which such
  notes are issued. Such notes may be sold at public or private  sale  and
  the  city  shall  have  power  to purchase the same from any revenues or
  funds of the city other than moneys derived from borrowings.
2. The authority shall have power to purchase pursuant to  conditional
  sales  agreements  or equipment trust agreements, to lease and otherwise
  to acquire subject to a lien for the purchase price, such  equipment  as
  it  deems desirable including cars and rolling stock, electric and other
  motive power vehicles, automobiles, buses,  and  other  motor  vehicles,
  provided,  however,  that  the amount of liabilities which the authority
  may incur under this subdivision shall be governed  by  the  limitations
  contained  in paragraph b of subdivision one of section eighteen hundred
  three of this law and shall in no event exceed such sum of five  million
  dollars  in  any  one  fiscal  year  without  the approval of the mayor.
  Payment for  such  equipment,  or  rentals  therefor,  may  be  made  in
  installments  to a trustee in trust to secure payment of equipment trust
  certificates, and provision may be made that  title  to  such  equipment
  shall  not  vest in the authority until the equipment trust certificates
  are paid, or that such equipment shall be subject to a  lien  to  secure
  equipment  trust certificates. Any such agreements, leases and equipment
  trust  certificates  shall  contain  such  covenants,   conditions   and
  provisions  as  it deems necessary or desirable to insure payment of the
  equipment trust certificates.
3. The authority may also issue its promissory notes from time to time
  in conformity with applicable provisions of the uniform commercial  code
  for  the  purpose  of  raising  working  capital  to pay its expenses of
  operation. Such promissory notes shall be  general  obligations  of  the
  authority, may be secured or unsecured as the authority shall determine,
  subject to the prior rights, if any, of the holders of other obligations
  of  the  authority, shall mature not later than five years from the date
  of issue and shall at no time be  outstanding  in  an  unpaid  principal
  amount  in  excess of two hundred million dollars. Such promissory notes
  may be sold at public or private sale.