2006 New York Code - Remedies Of Bondholders.

 
    §  2086.  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 city of Peekskill 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  proceeding at law or in equity 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 in 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 the bondholders. The venue of any
  such suit, action or proceeding shall be laid in the city of Peekskill.
    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 the 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 construction, operation, maintenance
  and reconstruction of such part or parts of the project and proceed with
  any construction thereon 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  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 such project.
    f. The 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.