2006 New York Code - Remedies Of Noteholders And Bondholders.

 
    §  1314. Remedies of noteholders and bondholders. 1. In the event that
  the authority shall default in the payment of principal of  or  interest
  on  any issue of notes or 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 notes  or
  bonds,  the  holders  of  twenty-five  per centum in aggregate principal
  amount of the  notes  or  bonds  of  such  issue  then  outstanding,  by
  instrument or instruments filed in the office of the clerk of any county
  in  which  the  authority  operates  and  has  an  office  and proved or
  acknowledged in the same manner as a deed to be recorded, may appoint  a
  trustee to represent the holders of such notes or 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 notes or  bonds  then
  outstanding shall, in his or its own name:
    (a)  by  suit,  action  or  proceeding  in  accordance  with the civil
  practice law and  rules,  enforce  all  rights  of  the  noteholders  or
  bondholders,  including  the  right  to require the authority to collect
  fares, tolls, rentals, rates, charges and other fees adequate  to  carry
  out  any  agreement  as  to,  or  pledge of, such fares, tolls, rentals,
  rates, charges and other fees and to require the authority to carry  out
  any  other  agreements  with  the  holders of such notes or bonds and to
  perform its duties under this title;
    (b) bring suit upon such notes or bonds;
    (c) by action or suit, require the authority to account as if it  were
  the trustee of an express trust for the holders of such notes or bonds;
    (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 notes or bonds;
    (e)  declare  all  such  notes  or  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 notes or bonds
  then outstanding, to 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  or  noteholders  in the enforcement and
  protection of their rights.
    4. The supreme court shall have jurisdiction of any  suit,  action  or
  proceedings by the trustee on behalf of such noteholders or bondholders.
  The  venue  of  any such suit, action or proceeding shall be laid in the
  county in which the instrument or instruments are  filed  in  accordance
  with subdivision one of this section.
    5.  Before  declaring the principal of notes or bonds due and payable,
  the trustee shall first give thirty  days'  notice  in  writing  to  the
  governor,  to  the  authority,  to  the  comptroller and to the attorney
  general of the state.