2006 New York Code - Remedies Of Bondholders.

 
    §  2786.  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 the 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 bond holders 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 bond holders. 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 any receiver of any part or parts of the
  project, the revenues of which are pledged for the security of 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 monies 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  there
  from  subject  to  any  pledge  or  agreement with bond holders 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, council
  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.