2006 New York Code - Remedies Of Bondholders.

 
    * §  1130.  Remedies  of  bondholders.  Subject  to  any resolution or
  resolutions adopted pursuant to paragraph (j)  of  subdivision  four  of
  section one thousand one hundred twenty-nine of this title:
    1.  In  the event that the authority shall default in the 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 percent 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 town 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 percent in principal amount of such bonds outstanding, shall
  in his, her or its own name:
    (a) by action or proceeding in accordance with the civil practice  law
  and rules, enforce all rights of the bondholders, including the right to
  require  the  authority  to collect rents, rates and charges adequate to
  carry out any agreement as to, or  pledge  of,  such  rents,  rates  and
  charges  and  to 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
  percent  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 or proceeding shall be laid in the county of Saratoga,
  New York.
    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 subject to any pledge or agreement with holders
  of such bonds, such receiver may enter and 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.
    * NB There are 2 § 1130's