2012 New York Consolidated Laws
PBA - Public Authorities
Article 10 - NEW YORK STATE MUNICIPAL ASSISTANCE CORPORATION ACT
Title 2 - (3010 - 3021) GENERAL PROVISIONS RELATING TO MUNICIPAL ASSISTANCE CORPORATIONS
3017 - Remedies of noteholders and bondholders.

 
    §  3017. Remedies of noteholders and bondholders. 1. In the event that
  a corporation shall default in the payment of principal of  or  interest
  on  or  sinking  fund  payment on, any issue of notes or bonds after the
  same shall become due, whether at maturity or otherwise or in the  event
  that  a corporation 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 in which the principal office of such corporation 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 notes
  or bonds for the purposes herein provided.
    2. Such trustee may, and  upon  written  request  of  the  holders  of
  twenty-five  percentum  in  principal amount of such notes or bonds 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 noteholders or
  bondholders, including the right to require the corporation to carry out
  any agreement with such holders and to perform  its  duties  under  this
  act;
    (b) bring suit upon such notes or bonds;
    (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  notes  or
  bonds;
    (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 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, annul such declaration and its consequences.
    3. The supreme court shall have jurisdiction of any  suit,  action  or
  proceeding  by  the  noteholder  or bondholder trustee on behalf of such
  noteholders or bondholders. The  venue  of  any  such  suit,  action  or
  proceeding  shall be laid in the county in which the principal office of
  the corporation is located.
    4. Before declaring the principal of notes or bonds due  and  payable,
  the  trustee  shall  first  give  thirty  days' notice in writing to the
  governor, the corporation and to the attorney general of the state.