2006 New York Code - Remedies Of Bondholders.

 
    §  2049-ii.  Remedies  of  bondholders.  Subject  to any resolution or
  resolutions  adopted  pursuant  to  subdivision  three  of  section  two
  thousand forty-nine-hh of this title:
    1.  In  the  event  that the authority shall default in the payment of
  principal or of 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 the 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
  in  which the principal office of the authority is located 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  holder  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, 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  per
  centum  of the principal amount of such 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 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 where the
  principal office of the authority is located.
    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
  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 holders of such bonds, shall take  possession  of  all  moneys  and
  other  property  derived  from  such  part  or  parts of the project and
  proceed  with  any  construction  thereon  or  the  acquisition  of  any
  property,  real  or personal, in connection therewith that 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  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 project.