2006 New York Code - Remedies Of Bondholders.

 
    §  1066.  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 Erie 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  suit,  action or special proceeding enforce all rights of the
  bondholders, including the right to require  the  authority  to  collect
  revenues,  rates,  rentals, fees and other charges adequate to carry out
  any agreement as to, or pledge of such revenues,  rates,  rentals,  fees
  and  other  charges  and to require the authority to carry out any other
  agreements with the holders of such bonds  and  to  perform  its  duties
  under this title;
    (b) bring suit upon such bonds;
    (c)  by  action or suit in equity, 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 suit 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, to  annul
  such declaration and its consequences.
    3.  The  supreme  court shall have jurisdiction of any suit, action or
  proceeding by the trustee on behalf of bondholders.
    4. Before declaring the principal of all such 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 all moneys and other
  property derived from such part or parts of the 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.