2006 New York Code - Remedies Against The Utica Transit Authority.

 
    § 62. Remedies  against  the Utica transit authority. 1.  In an action
  or proceeding to foreclose a mortgage on property of the  Utica  transit
  authority,  the authority and all other necessary parties, shall be made
  parties defendant and shall take such steps in said  action  as  may  be
  necessary  to  protect the public interest therein and no costs shall be
  awarded against them. Wherever under the instrument creating  a  lien  a
  notice  of  default  in  writing is required to be served upon the Utica
  transit authority before the institution  of  a  foreclosure  action  or
  proceeding,  a  copy of such notice shall be served upon the chairman of
  the authority  at  least  five  days  before  the  institution  of  such
  proceedings.  At  such a sale of the property of the mass transportation
  authority pursuant to foreclosure or other proceedings, the municipality
  or municipalities within whose  territorial  jurisdiction  the  property
  exists  may  purchase  the  property  affected;  or such municipality or
  municipalities may, prior to the institution of a foreclosure action  or
  proceeding,  or  during  such  action or proceeding make such payment or
  take such other steps as may be necessary to cure any defaults that  may
  have occurred and such steps as may be necessary to protect the property
  of the Utica transit authority and the public interest.
    2.  In the event that the Utica transit authority shall default in the
  payment of principal of or interest on an 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  the  authority shall fail or refuse to comply with the provisions
  of this article or shall default in an agreement with the holders of  an
  issue  of bonds then outstanding, the holders of twenty-five per cent of
  the  aggregate  principal  amount  of  the  bonds  of  the  issue   then
  outstanding  by  instrument  or  instruments  filed in the office of the
  clerk of the county in which the principal office of the  Utica  transit
  authority is situated and proved or acknowledged in the same manner as a
  deed  to  be recorded, may appoint a trustee to represent the holders of
  the bonds for the purposes herein provided. Such trustee may declare all
  the bonds due and payable, but before declaring  the  principal  of  the
  bonds  due  and  payable,  he  shall  first  give thirty days' notice in
  writing to the authority, and, if all defaults shall be made good,  then
  with the consent of the holders of twenty-five per cent of the aggregate
  principal  amount  of  the  bonds  then  outstanding, he shall annul the
  declaration and its consequences. He shall, in addition  to  any  powers
  granted by this section, have and possess all of the powers necessary or
  appropriate  for the exercise of functions specifically set forth herein
  or  incident  to  the  general  representation  of  bondholders  in  the
  enforcement and protection of their rights.
    3.  In  addition to any other rights and remedies, but subject to such
  limitations  as  may  be  made  by  contract,  any  obligee,  lessor  or
  mortgagee,  or any trustee or agent designated in the bonds of the Utica
  transit authority or appointed as provided  in  paragraph  two  of  this
  section,  or  under  a resolution, mortgage or indenture executed by the
  Utica transit authority as security for its bonds may:
    (a) bring suit upon the bonds of the Utica transit authority;
    (b) by suit, action or special proceeding at law or in equity  enforce
  all  rights of the bondholders, including the right to require the Utica
  transit authority to collect revenues, rates, fares, fees,  rentals  and
  other  charges  adequate to carry out any agreement as to, or pledge of,
  such revenues, rates, fares, fees, rentals and  other  charges,  and  to
  require  the  authority  to  carry  out  any  other  agreement  with the
  bondholders and to perform its duties under this article;
    (c) by suit, action or special proceeding at law or in  equity  compel
  the  authority  to  perform  each and every term, provision and covenant
  contained in any agreement of the authority with  an  obligee,  trustee,
  mortgagee  or  lessor  and  require  the  performance of any or all such
  covenants and agreements of the  Utica  transit  authority  and  of  the
  duties imposed upon such authority by this article;
    (d) by action or suit, enjoin any acts or things which may be unlawful
  or  in  violation  of the rights of such obligee, trustee, mortgagee, or
  lessor;
    (e)  by  suit,  action  or  proceeding  in  any  court  of   competent
  jurisdiction  compel possession of any project or any part thereof to be
  surrendered to such obligee, trustee, mortgagee, or  lessor  having  the
  right to such possession under any agreement with the authority;
    (f)   by  suit,  action  or  proceeding  in  any  court  of  competent
  jurisdiction obtain the appointment  of  a  receiver  of  any  municipal
  project  of the mass transportation authority or any part thereof and of
  the rents and profits therefrom. If such receiver be appointed,  he  may
  enter  and  take possession of such project or any part or parts thereof
  and operate and maintain the same, and collect  and  receive  all  fees,
  rates,  fares,  rents,  revenues,  or  other  charges thereafter arising
  therefrom in the same manner as the Utica transit authority itself might
  do, and shall keep such moneys in a separate  account  or  accounts  and
  apply  the  same  in accordance with the obligations of the authority as
  the court shall direct;
    (g) by action or suit require the Utica transit authority  to  account
  as if it were the trustee of an express trust.
    4.  The  supreme court of the state shall have jurisdiction of a suit,
  action or proceeding by a trustee on behalf of  the  bondholders.    The
  venue  of  the suit, action or proceeding shall be laid in the county in
  which the principal office of the Utica transit authority is situated.
    5. In a suit, action or proceeding by a trustee for the bond  holders,
  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 courts shall be a first charge on revenues,
  rates, fares, fees, rentals and other charges derived from the municipal
  project.