2012 New York Consolidated Laws
PBA - Public Authorities
Article 5 - PUBLIC UTILITY AUTHORITIES
Title 8-C - (1198-A - 1198-T) WATER AUTHORITY OF WESTERN NASSAU COUNTY
1198-I - Remedies of bondholders.

 
    §  1198-i. Remedies of bondholders. 1. In the event that the authority
  shall default in the payment of principal of or interest on any issue 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 any issue of the bonds,  the  holders
  of  twenty-five per centum in aggregate principal amount of the bonds of
  such issue then outstanding, by instrument or instruments filed  in  the
  office  of the clerk of the applicable county 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 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  bonds  outstanding
  shall, in his or her own name:
    (a)  by action or proceeding in accordance with the civil practice law
  and rules, enforce  all  rights  of  the  bondholders  and  require  the
  authority  to  carry  out  any other agreements with the holders of such
  bonds and to perform its duties under this title;
    (b) bring an action or proceeding upon such bonds;
    (c) by action or proceeding, require the authority to account as if it
  were the trustee of an express trust for the holders of such bonds;
    (d) by action or proceeding, enjoin any acts or things  which  may  be
  unlawful or in violation of the rights of the holders of such bonds; and
    (e)  declare all such 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 bonds then outstanding, annul
  such declaration and its consequences.
    3. 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  incidental  to  the  general
  representation of bondholders in the enforcement and protection of their
  rights.
    4.  The  state  supreme court shall have jurisdiction of any action or
  proceeding by the trustee on behalf of such bondholders.
    5. Before declaring the  principal  of  bonds  due  and  payable,  the
  trustee  shall  first  give  thirty  days'  notice  in  writing  to  the
  authority.