2013 New York Consolidated Laws
PML - Racing, Pari-Mutuel Wagering and Breeding Law
Article 5 - (501 - 517) REGIONAL OFF-TRACK BETTING CORPORATIONS
512 - Remedies of holders of bonds and notes.

 
    §  512. Remedies of holders of bonds and notes. 1. In the event that a
  corporation shall default in the payment of the principal of or interest
  on any issue of bonds or notes after the same shall become due,  whether
  at maturity or upon call for redemption, and such default shall continue
  for  a  period  of thirty days, or in the provisions of this article, or
  shall default in any agreement made with the holders of any issue of the
  bonds or notes, the holders  of  twenty-five  per  centum  in  aggregate
  principal  amount  of the bonds or notes of such issue then outstanding,
  by instrument or instruments filed in the office of  the  clerk  of  any
  county in which the corporation operates and approved or acknowledged in
  the  same  manner  as  a  deed  to be recorded, may appoint a trustee to
  represent the holders of such bonds or notes  for  the  purposes  herein
  provided.
    2.  Such  trustee  may,  and  upon  written  request of the holders of
  twenty-five per centum in principal amount of such bonds or  notes  then
  outstanding shall, in his or its own name:
    a.  By  suit,  action or special proceedings enforce all rights of the
  holders of the bonds or  notes,  including  the  right  to  require  the
  corporation to carry out any agreements with such holders and to perform
  its duties under this title;
    b. Bring suit upon such bonds or notes;
    c. By action or suit, require the corporation to account as if it were
  the trustee of an express trust for the holders of such bonds or notes;
    d.  By action or suit, enjoin any acts or things which may be unlawful
  or in violation of the rights of the holders of such bonds or notes;
    e. Declare all such bonds  or  notes  due  and  payable,  and  if  all
  defaults  shall  be  made good, then, with the consent of the holders of
  twenty-five per centum of the principal amount of such  bonds  or  notes
  then outstanding, annul such declaration and its consequences.
    3.  The  supreme  court shall have jurisdiction of any suit, action or
  proceedings by the trustee on behalf of such holders of bonds or  notes.
  The  venue  of  any  such  suit,  action  or  proceeding shall be in the
  judicial district in which the principal office of  the  corporation  is
  located.
    4.  Before  declaring the principal of bonds or notes due and payable,
  the trustee shall first give thirty  days'  notice  in  writing  to  the
  corporation,  the  governor, the comptroller and the attorney general of
  the state.
    5. Any such trustee, whether or not the issue of bonds represented  by
  such  trustee has been declared due and payable, shall be entitled as of
  right to the appointment of a receiver of the revenues which are pledged
  for the security of the bonds of such issue, and such receiver may enter
  and take possession of the premises, equipment and  property  which  the
  corporation is operating or is entitled to use or occupy, and shall take
  possession  of all revenues of the corporation and other moneys to which
  the corporation is entitled, and shall proceed to  conduct  pari-mutuel,
  off-track  betting  pursuant  to  the  provisions of this article in the
  place and stead of the corporations from  which  otherwise,  under  such
  article,  would constitute revenues of the corporation and shall perform
  the public duties and carry out the agreements and  obligations  of  the
  corporation  under  the  direction  of  the  court.  In  any  action  or
  proceeding by the trustee, the fees, counsel fees and  expenses  of  the
  trustee   and   of  the  receiver,  if  any,  shall  constitute  taxable
  disbursements allowed by the court and shall be a first  charge  on  any
  revenues of the corporation.
    6.  Such  trustee  shall in addition to the foregoing have and possess
  all the powers necessary or appropriate for the exercise of any function
  specifically set forth herein or incident to the general  representation

  of  the holders of such bonds or notes in the enforcement and protection
  of their rights.