Marvin Mandel, Governor                          1171

operation of competing transportation facilities of the same mode,
and covenants pertaining to the issuance of additional parity bonds
upon conditions stated therein consistent with the requirements of
this subheading. All expenses incurred in carrying out the provi-
sions of any such trust agreement may be treated as a part of
the cost of the operation of any transportation facilities project or
projects in connection with which such bonds have been issued.

(b) The proceeds of the sale of bonds shall be paid to the trustee
under any trust agreement securing such bonds and shall be dis-
bursed in such manner and under such restrictions, if any, as may
be provided in such trust agreement.

18. Revenues—Transportation Authority Fund.

(a)    The Authority is hereby authorized to fix, revise, charge and
collect rentals, rates, fees, tolls or other charges for the use of or for
the services furnished by any transportation facilities project or pro-
jects or any part, portion or section thereof, and to contract with
any person desiring the use thereof or any part, portion or sec-
tion thereof, for any purpose whatsoever and to fix the terms, con-
ditions, rentals, rates, fees, tolls or other charges therefor. The
rentals, rates, fees, tolls and other charges designated as security for
any bonds issued under this subheading shall be so fixed and ad-
justed in respect of the aggregate thereof from the transportation
facilities projects under the control of the Authority so as to pro-
vide funds sufficient, with other revenues if any, (i) to pay the cost
of maintaining, repairing and operating any transportation facili-
ties project or projects financed in whole or in part by outstand-
ing bonds, to the extent such cost is not otherwise provided, (ii)
to pay the principal of and the interest on such bonds as the same
become due and payable, (in) to create reserves for such purposes,
and (iv) to provide funds for paying the cost of replacements, re-
newals and improvements. Such rentals, rates, fees, tolls and other
charges shall not be subject to supervision or regulation by any de-
partment, division, commission, board, bureau or agency of the State
or any political subdivision thereof, provided, however, that nothing
herein contained shall be deemed to permit the exercise of any au-
thority or the undertaking of any activity that would conflict with
the provisions and limitations of the Federal Urban Mass Transit
Act of 1964, as amended.

(b)    All rentals, rates, fees, tolls and other charges and revenues,
or any part thereof, derived from any transportation facilities proj-
ect or projects shall, except to the extent pledged to secure reve-
nue bonds of prior issues by the terms of the applicable trust
agreements securing such bonds, be set aside in a sinking fund here-
by created and to be known as the "Transportation Authority
Fund" and hereby pledged to, and charged with, the payment of
(i) the interest upon bonds issued under this subtitle as such interest
falls due, (ii) the principal of such bonds as it falls due, (iii) the
necessary charges of paying agents for paying principal and interest,
and (iv) the redemption price or purchase price of bonds retired
by call or purchase as provided in the authorizing resolution or trust
agreement; any amounts set aside in the Transportation Authority
Fund which are not needed to provide for the payment of such
items (i), (ii), (iii) and (iv) may be used for any other lawful pur-