2006 New York Code - Remedies Of Bondholders.

 
    * §  1020-i.  Remedies  of  bondholders.  1.  In  the  event  that the
  authority shall default in the payment of principal of  or  interest  on
  any  issue  of  the  bonds  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 event that the authority shall
  fail or refuse to comply with the provisions of  this  title,  or  shall
  default  in  any  agreement  made  with  the holders of any issue of the
  bonds, the holders of twenty-five  per  centum  in  aggregate  principal
  amount  of  the  bonds  of such issue then outstanding, by instrument or
  instruments filed in the office of the clerk of the county of Albany and
  proved or acknowledged in the same manner as a deed to be recorded,  may
  appoint  a  trustee  to  represent  the  holders  of  such bonds 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  then
  outstanding shall, in his or its own name:
    (a) by action or proceeding in accordance with the civil practice  law
  and  rules,  enforce  all  rights  of  the  bondholders  and require the
  authority to carry out any agreements with the holders of such bonds and
  to perform its duties under this title;
    (b) bring an action or proceeding upon such bonds;
    (c) by action or proceeding, require the authority to account as if it
  were the trustee of an express trust for the holders of such bonds;
    (d) by action or proceeding in equity, enjoin any acts or things which
  may be unlawful or in violation of the rights of  the  holders  of  such
  bonds;
    (e)  declare all such bonds 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 then outstanding, annul
  such declaration and its consequences.
    3. The  supreme  court  shall  have  jurisdiction  of  any  action  or
  proceeding  by  the  trustee  on behalf of bondholders. The venue of any
  such action or proceeding shall be laid in the county of Albany.
    4. Before declaring the  principal  of  bonds  due  and  payable,  the
  trustee  shall  first  give  thirty  days'  notice  in  writing  to  the
  authority.
    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  any  part  or  parts  of  the
  properties  the  revenues  of  which are pledged for the security of the
  bonds of such issue and such receiver may enter and take  possession  of
  such  part  or  parts  of  the  properties  and subject to any pledge or
  agreement with bondholders shall take possession of such part  or  parts
  of  such  properties  and  proceed  with any construction thereon or the
  acquisition of any property, real or personal  in  connection  therewith
  which  the authority is under obligation to do, and to operate, maintain
  and reconstruct such part or parts of the  properties  and  collect  and
  receive  all revenues thereafter arising therefrom subject to any pledge
  thereof or agreement with bondholders relating thereto and  perform  the
  public  duties  and  carry  out  the  agreements  and obligations of the
  authority under the direction of the  court.  In  any  suit,  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 and all costs and disbursements allowed by the court shall
  be a first charge on any revenues derived from the properties.
    6.  Such  trustees shall in addition to the foregoing have and possess
  all of the powers necessary or  appropriate  for  the  exercise  of  any
  functions  specifically  set  forth  herein  or  incident to the general
  representation of bondholders in the enforcement and protection of their
  rights.
    * NB There are 2 § 1020-i's