2006 New York Code - Remedies Of Bondholders.

 
    §  2760.  Remedies  of  bondholders.  Subject  to  any  resolution  or
  resolutions adopted pursuant to 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  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 holders of
  twenty-five per centum in principal amount of  such  bonds  outstanding,
  shall in 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, fees and charges adequate
  to carry out any agreement as to, or pledge of, such rents, rates,  fees
  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.
    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 the 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 operate, maintain  and  reconstruct  such
  part  or  parts  of  the  project  and  collect and receive all revenues
  thereafter arising therefrom subject to any  pledge  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.