2021 New York Laws
PVH - Private Housing Finance
Article 3 - New York State Housing Finance Agency
50 - Remedies of Noteholders and Bondholders.

§  50.  Remedies  of noteholders and bondholders. 1. In the event that
the agency shall default in the payment of principal of or  interest  on
any  issue of notes or 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 agency shall fail
or refuse to comply with  the  provisions  of  this  article,  or  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
of Albany and approved 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  per  centum in principal amount of such notes or bonds then
outstanding shall, in his or its own name:
  (a) by action or special  proceeding  in  accordance  with  the  civil
practice  law  and  rules,  enforce  all  rights  of  the noteholders or
bondholders, including the right to require the agency to  collect  fees
and  charges  and  interest  and amortization payments on mortgage loans
made by it adequate to carry out any agreement as to, or pledge of, such
fees  and  charges  and  interest  and  amortization  payments  on  such
mortgages,  and  other properties and to require the agency to carry out
any other agreements with the holders of such  notes  or  bonds  and  to
perform its duties under this title;
  (b) bring suit upon such notes or bonds;
  (c)  by  action or special proceeding require the agency to account as
if it were the trustee of an express trust for the holders of such notes
or bonds;
  (d) by action or special proceeding 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, to 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  incident to the general
representation of bondholders or  noteholders  in  the  enforcement  and
protection of their rights.
  4.  The  supreme  court shall have jurisdiction of any suit, action or
proceeding by the trustee on behalf of such noteholders or  bondholders.
The  venue  of  any such suit, action or proceeding shall be laid in the
county of Albany.
  5. Before declaring due and payable the principal of  notes  or  bonds
issued  in  connection  with any mortgage or other obligation securing a
mortgage loan made by the agency, the trustee shall  first  give  thirty
days'  notice  in  writing  to  the  governor,  to  the  agency,  to the
commissioner of housing and community renewal, the state commissioner of
health,  the  state  commissioner  of  mental  hygiene  or   the   state
commissioner of social services, as the case may be, and to the attorney
general of the state.