2006 New York Code - Remedies Of Bondholders.

 
    §  1599-pp.  Remedies  of  bondholders.  (a)  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  Rockland
  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.
    (b)  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
    (1)  by  suit, action or special proceedings 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;
    (2) bring suit upon such bonds;
    (3) 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;
    (4) 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;
    (5)  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.
    (c) 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 Rockland.
    (d) Before declaring the principal of all such bonds due and  payable,
  the  trustee  shall  first  give  thirty  days' notice in writing to the
  authority.
    (e) 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 moneys and other property
  derived  from or applicable to the acquisition, construction, operation,
  maintenance and reconstruction of such part or parts of the project  and
  proceed   with  the  acquisition  of  any  necessary  real  property  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, maintain and reconstruct 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.
    (f) 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.