32:2-23.22. Powers and duties of Port Authority

(a) Upon the election by either State as provided in section 1 hereof, the Port Authority shall be authorized and empowered to:

(i) purchase and own railroad cars for the purpose of leasing them to any commuter railroad of such State; provided, however, that no railroad cars shall be so purchased except with advances received or money borrowed pursuant to subparagraphs (ii) and (iii) of this paragraph (a), nor shall the Port Authority incur expenses in connection with such purchase and ownership except out of such advances or borrowed money or the rentals received from such leasing;

(ii) receive and accept advances from such State for such purchase upon such terms and conditions as such State may specify;

(iii) borrow money from any source for such purchase or for the repayment of such advances or money borrowed, subject to the provisions of paragraph (b) of this section;

(iv) secure the repayment of principal of and interest upon any such borrowed money by and only by a lien upon such railroad cars, a pledge of the rentals therefrom and the liability of the electing State for the repayment of such principal and interest;

(v) lease such railroad cars directly or indirectly to any commuter railroad of such State upon such terms and conditions as the Port Authority shall deem in the public interest, including postponement of receipt of rentals by the Port Authority in the interest of increasing and improving the service rendered to the commuting public; provided, however, that no such lease shall become effective until it has been approved in writing by the officer of the electing State designated by appropriate legislation; and

(vi) sell or otherwise dispose of such cars upon such terms and conditions and to such persons as the Port Authority shall deem in the public interest, except as may be otherwise directed by such electing State.

(b) The Port Authority shall not borrow money pursuant to subparagraph (a)(iii) of this section unless and until the electing State shall have duly amended its constitution, if necessary, making or authorizing making the State liable for the repayment of the money so borrowed and interest thereon or for the fulfillment of the rental obligations to the Port Authority, or both; and the Port Authority shall not borrow any such money unless and until the electing State shall be made liable for the repayment of any such money.

L.1959, c. 25, p. 113, s. 3.