2006 New York Code - Remedies Of Bondholders.

 
    §  1439.  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  Westchester  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 adequate to carry out  by  any
  agreement  as  to,  or  pledge  of,  such  revenues,  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. The venue of any
  such suit,  action  or  proceeding  shall  be  laid  in  the  county  of
  Westchester.
    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
  project 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 project and, subject to  any  pledge  or  agreement
  with  bondholders, shall take possession of all revenues or other moneys
  and other property derived  from  or  applicable  to  the  construction,
  operation  and  maintenance  of  such  part  or parts of the project and
  proceed  with  the  acquisition  of  any  real  property  necessary   or
  convenient  in  connection  with  the  project  that  the  authority has
  covenanted to construct, and with any construction which  the  authority
  is under obligation to do and to operate and maintain such part or parts
  of  the  project 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 fee,
  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 such project.
    6.  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.