2006 New York Code - Remedies Of Bondholders.

 
    §  1115-o.  Remedies  of  bondholders.  Subject  to  any resolution or
  resolutions adopted pursuant to paragraph (i)  of  subdivision  four  of
  section one thousand one hundred fifteen-n of this title:
    1.  In  the  event  that the authority shall default in the payment of
  principal of or interest on any issue of  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  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 city
  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
  purpose herein provided.
    2. Such trustee may and,  upon  written  request  of  the  holders  of
  twenty-five  per  centum  in  principal amount of such bonds 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 other agreements with  the  holders  of  such
  bonds 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, enjoin any acts or things which may be
  unlawful or in violation of the rights of the holders of such bonds; and
    (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.  Such  trustee  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.
    4. The  supreme  court  shall  have  jurisdiction  of  any  action  or
  proceeding  by  the  trustee on behalf of such bondholders. The venue of
  any such action shall be laid in the county of Albany.
    5. Before declaring the  principal  of  bonds  due  and  payable,  the
  trustee shall first give thirty days notice in writing to the authority.
    6.  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 shall take  possession  of  all
  moneys  and  other  property  derived  from  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.