2009 Rhode Island Code
Title 46 - Waters and Navigation
CHAPTER 46-25 - Narragansett Bay Commission
§ 46-25-66 - Remedies of bondholders and noteholders.

SECTION 46-25-66

   § 46-25-66  Remedies of bondholders and noteholders. – (a) In the event that the commission shall default in the payment of principal of or interest on any revenue bonds or revenue notes, issued pursuant to the provisions of §§ 46-25-58 – 46-25-66, after the bonds or notes shall become due, whether at maturity or upon call for redemption, and the default shall continue for a period of thirty (30) days, or in the event that the commission shall fail or refuse to comply with the provisions of this chapter, or shall default in any agreement made with the holders of an issue of revenue bonds or revenue notes of the commission, the holders of twenty-five percent (25%) of the aggregate principal amount of the revenue bonds or revenue notes of the issue then outstanding, by instrument or instruments filed in the office of the secretary of state and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of the revenue bonds or revenue notes for the purposes herein provided.

   (b) The trust may, and upon written request of the holders of twenty-five percent (25%) of the aggregate principal amount of the revenue bonds or revenue notes then outstanding shall, in his or her or its own name:

   (1) Enforce all rights of the bondholders or noteholders, including the right to require the commission to collect rent, interest, repayments, and payments on the leases, mortgages, loan agreements, and sales agreements held by it to carry out any agreement as to, or pledge of, the rent, interest repayments, and payments, and to require the commission to carry out any other agreements with the holders of the revenue bonds or revenue notes and to perform its duties under this chapter;

   (2) Enforce all rights of the bondholders or noteholders so as to carry out any contract as to, or pledge of, revenues, and to require the commission to carry out and perform the terms of any contract with the holders of its revenue bonds or revenue notes or its duties under this chapter;

   (3) Bring suit upon all or any part of the revenue bonds or revenue notes;

   (4) By action or suit, require the commission to account as if it were the trustee of an express trust for the holders of the revenue bonds or revenue notes;

   (5) By action or suit, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of the revenue bonds or revenue notes;

   (6) Declare all the revenue bonds or revenue notes due and payable and, if all defaults shall be made good, then, with the consent of the holders of twenty-five percent (25%) of the aggregate principal amount of the revenue bonds or revenue notes then outstanding, to annul the declaration and its consequences.

   (c) The trustees shall, in addition to the foregoing have and possess all 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.

   (d) The superior court of Providence County shall have jurisdiction of any suit, action, or proceeding by the trustee on behalf of bondholders or noteholders.