2006 New York Code - Remedies Of Noteholders And Bondholders.

 
    §  368.  Remedies of noteholders and bondholders. 1. In the event that
  the authority shall default in the payment of principal of  or  interest
  on  any issue of notes or 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 notes  or
  bonds,  the  holders  of  twenty-five  per centum in aggregate principal
  amount of the  notes  or  bonds  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  notes
  or bonds for the purposes herein provided.
    2.  Such  trustee  may,  and  upon  written  request of the holders of
  twenty-five per centum in principal amount of such notes or  bonds  then
  outstanding shall, in his or its own name
    (a)  by  mandamus  or  other  suit,  action or proceeding at law or in
  equity enforce all rights of the noteholders or  bondholders,  including
  the  right to require the authority to collect fees, rentals and charges
  adequate to carry out any agreements with the holders of such  notes  or
  bonds and to perform its duties under this title;
    (b) bring suit upon such notes or bonds;
    (c)  by  action or suit in equity, require the authority to account as
  if it were the trustee of an express trust for the holders of such notes
  or bonds;
    (d) 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 notes
  or bonds;
    (e) declare all such notes or  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  notes  or  bonds
  then  outstanding,  to  annul  such  declaration  and  its consequences;
  provided, however, that this clause (e) shall not be applicable  in  the
  case of notes or bonds guaranteed by the state.
    3.  Such  trustee,  whether  or  not  the  issue  of  bonds  or  notes
  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 thruway, the fees, rentals, charges or  other  revenues  of
  which  are  pledged for the security of the bonds or notes of such issue
  and such receiver may enter and take possession of such part or parts of
  the thruway 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 thruway and proceed with any
  construction  thereon  which the authority is under obligation to do and
  shall operate, maintain and  reconstruct  such  part  or  parts  of  the
  thruway,  and  collect  and receive all fees, rentals, charges and other
  revenues thereafter arising therefrom subject to any pledge  thereof  or
  agreement  with  bondholders or noteholders 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 tolls, rentals and other revenues derived  from
  such part or parts of the thruway.
    4.  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 or  noteholders  in  the  enforcement  and
  protection of their rights.
    5.  The  supreme  court shall have jurisdiction of any suit, action or
  proceeding by the trustee on behalf of such noteholders or  bondholders.
  The  venue  of  any such suit, action or proceeding shall be laid in the
  county of Albany.
    6. Before declaring the principal of notes or bonds not guaranteed  by
  the  state  due  and  payable, the trustee shall first give thirty days'
  notice in writing to the authority.