2006 New York Code - Remedies Of Bondholders And Noteholders.

 
    §  3243.  Remedies  of  bondholders and noteholders. 1. Subject to the
  provisions of section three thousand  two  hundred  thirty-six  of  this
  title, in the event that the corporation shall default in the payment of
  principal  of  or  interest  on  or sinking fund payment on any issue of
  bonds or notes after the same shall become due, whether at  maturity  or
  upon  call  for  redemption, or in the event that the corporation or the
  state shall default in any agreement made with the holders of any  issue
  of  bonds  or  notes, the holders of twenty-five per centum in aggregate
  principal amount of the bonds or notes of such issue  then  outstanding,
  by  instrument  or  instruments  filed in the office of the clerk of the
  county of Albany 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 or notes for the purposes herein provided.
    2. Such trustee, or any trustee appointed under section three thousand
  two  hundred  thirty-six of this title, may, and upon written request of
  the holders of twenty-five per centum in principal amount of such  bonds
  or notes then outstanding shall, in his or its own name:
    (a)  by  suit,  action  or  proceeding  in  accordance  with the civil
  practice law and  rules,  enforce  all  rights  of  the  bondholders  or
  noteholders, including the right to require the corporation to carry out
  any  agreement  with  such  holders and to perform its duties under this
  title;
    (b) bring suit upon such bonds and notes;
    (c) by action or suit, require the corporation to  account  as  if  it
  were  the  trustee  of an express trust for the holders of such bonds or
  notes;
    (d) by action or suit, enjoin any acts or things which may be unlawful
  or in violation of the rights of the holders of such bonds or notes; and
    (e) declare all such bonds or  notes  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  or  notes
  then  outstanding  annul such declaration and its consequences provided,
  however,  that  nothing  herein  shall  preclude  the  corporation  from
  agreeing  that  consent  of  the  provider of a bond or note facility is
  required for an acceleration of related bonds or notes in the event of a
  default other than a failure to pay principal  of  or  interest  on  the
  bonds or notes when due.
    3.  The  supreme  court shall have jurisdiction of any suit, action or
  proceeding by the trustee on behalf of such bondholders or  noteholders.
  The  venue  of  any such suit, action or proceeding shall be laid in the
  county of Albany.
    4. Before declaring the principal of bonds or notes due  and  payable,
  the  trustee  shall  first  give  thirty  days' notice in writing to the
  corporation, the governor, the comptroller, the temporary  president  of
  the  senate,  the speaker of the assembly and to the attorney general of
  the state.