2012 New York Consolidated Laws
PBA - Public Authorities
Article 5 - PUBLIC UTILITY AUTHORITIES
Title 8-F - (1199-AAA - 1199-XXX) SARATOGA COUNTY WATER AUTHORITY
1199-III - Remedies of bondholders.

 
    §  1199-iii.  Remedies  of  bondholders.  Subject to any resolution or
  resolutions adopted pursuant to paragraph (j)  of  subdivision  four  of
  section one thousand one hundred ninety-nine-hhh of this title:
    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 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 its own name:
    (a)  by action or proceeding in accordance with the civil practice law
  and rules, enforce all rights of the bondholders including the right  to
  require  the  authority  to collect rents, rates and charges adequate to
  carry out any agreement as to, or  pledge  of,  such  rents,  rates  and
  charges,  and to 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. Venue of any
  such action or proceeding shall be laid in the county.
    5. Any such trustee, whether or not the issue of bonds 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
  properties  the  revenues  of  which are pledged for the security of the
  bonds of such issue, and,  subject  to  any  pledge  or  agreement  with
  holders  of  such  bonds, such receiver may enter and take possession of
  such part or parts of the properties and shall take  possession  of  all
  moneys  and  other  property  derived  from  such  part or parts of such
  properties and proceed with any construction thereon or the  acquisition
  of  any  property,  real  or personal, in connection therewith which the
  authority is under obligation  to  do,  and  to  operate,  maintain  and
  reconstruct such part or parts of the properties and collect and receive
  all  revenues thereafter arising therefrom subject to any pledge thereof
  or agreement with bondholders 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 revenues derived from the properties.
    6.  Before  declaring  the  principal  of  bonds  due and payable, the
  trustee  shall  first  give  thirty  days'  notice  in  writing  to  the
  authority.