2012 New York Consolidated Laws
PBA - Public Authorities
Article 7 - PARKING AUTHORITIES
Title 21 - (1621-A - 1621-T) MIDDLETOWN PARKING AUTHORITY
1621-P - Remedies of bondholders.

 
    §  1621-p. 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 county of Orange 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   then
  outstanding shall, in the trustee's own name:
    (a)  by  mandamus  or  other  suit, action or proceeding, at law or in
  equity, enforce all rights of the bondholders, including  the  right  to
  require  the  authority to collect revenues adequate to carry out by any
  agreement as to, or  pledge  of,  such  revenues,  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 suit upon such 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 holders of such
  bonds;
    (d) by action or suit in equity, enjoin any acts or things  which  may
  be unlawful or in violation of the rights of the holders of such bonds;
    (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, 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 bondholders. The venue of any
  such suit, action or proceeding shall be laid in the county of Orange.
    4. Before declaring the principal of all such bonds due  and  payable,
  the  trustee  shall  first  give  thirty  days' notice in writing to the
  authority.
    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
  project  the revenues of which are pledged for the security of the bonds
  of such issue, and such receiver may enter and take possession  of  such
  part  or  parts  of  the project and, subject to any pledge or agreement
  with bondholders, shall take possession of all moneys and other property
  derived from or applicable to the acquisition, construction,  operation,
  maintenance  and reconstruction of such part or parts of the project and
  proceed  with  the  acquisition  of  any  real  property  necessary   or
  convenient  in  connection  with  the  project  that  the  authority has
  covenanted to construct, and with any construction which  the  authority
  is  under obligation to do and to operate, maintain and reconstruct such
  part or parts of the  project  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  fee,  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 such project.
    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 bondholders in the enforcement and protection of their
  rights.