2012 New York Consolidated Laws
PBA - Public Authorities
Article 3 - BRIDGE AND TUNNEL AUTHORITIES
Title 4 - (575 - 592) THOUSAND ISLANDS BRIDGE AUTHORITY
586 - Remedies of bondholders.

 
    §  586.  Remedies  of  bondholders. 1. In the event that the authority
  shall default in the payment of principal of or interest on any  of  the
  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  the  bonds, the holders of twenty-five per
  centum in aggregate principal amount of the bonds  then  outstanding  by
  instrument  or  instruments,  filed  in  the  office of the clerk of the
  county of Jefferson and proved or acknowledged in the same manner  as  a
  deed  to be recorded, may appoint a trustee to represent the bondholders
  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 the bonds then outstanding
  shall, in his or its own name:
    (a)  by  suit, action or special proceeding, enforce all rights of the
  bondholders, including the right to require the authority and the  board
  to  collect tolls and rentals adequate to carry out any agreement as to,
  or pledge of, such tolls and rentals, and to require the  authority  and
  the  board to carry out any other agreements with the bondholders and to
  perform its and their duties under this title;
    (b) bring suit upon the 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 bondholders;
    (d)  by  action or suit in equity, enjoin any acts or things which may
  be unlawful or in violation of the rights of the bondholders;
    (e) declare all bonds due and payable and if any default shall be made
  good to annul such declaration and its consequences.
    3. The supreme court shall have jurisdiction of any  suit,  action  or
  proceeding by the trustee on behalf of the bondholders. The venue of any
  such suit, action or proceedings shall be laid in Jefferson county.
    4.  Before  declaring  the  principal of all bonds due and payable the
  trustee  shall  first  give  thirty  days'  notice  in  writing  to  the
  authority.
    5.  Any  such trustee, whether or not all bonds have been declared due
  and payable, shall be entitled as of  right  to  the  appointment  of  a
  receiver  who may enter and take possession of the bridges and road then
  under the jurisdiction of the authority or any part or parts thereof and
  operate and maintain the same and collect and receive all tolls, rentals
  and other revenues thereafter arising from the American  channel  bridge
  in  the  same  manner as the authority itself might do and shall deposit
  all such moneys in a separate account and apply the same in such  manner
  as  the  court  shall  direct.  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 the American channel
  bridge.
    6. 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  the bondholders in the enforcement and protection of
  their rights.