§ 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.