N.Y. Arts and Cultural Affairs Law § 59.21: Remedies of bondholders

§ 59.21. Remedies of bondholders. 1. In the event that the Planetarium

Authority shall default in the payment of principal of or interest on

any 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 Planetarium Authority shall

fail or refuse to comply with the provisions of this title, or shall

default in any agreement made with the holders of the bonds, the holders

of twenty-five percentum in aggregate principal amount of the bonds then

outstanding by instrument or instruments filed in the office of the

clerk of the county of New York and proved or acknowledged in the same

manner as a deed to be recorded may appoint a trustee to represent the

bondholders for the purposes herein provided;

2. Such trustee may, and upon written request of the holders of

twenty-five percentum in the principal amount of the bonds then

outstanding shall, in his or its own name:

(a) By suit, action or special proceeding enforce all rights of the

bondholders, including the right to require the Planetarium Authority

and the board to collect admission fees adequate to carry out any

agreement as to, or pledge of, such admission fees, and to require the

Planetarium Authority and the board to carry out any other agreements

with the bondholders and to perform its and their duties under this

title;

(b) Bring suit upon the 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 bondholders;

(d) By action or suit in equity, enjoin any acts or things which may

be unlawful or in violation of the rights of the bondholders;

(e) Declare all bonds due and payable, and if all defaults shall be

made good annul, upon the written consent of the holders of twenty-five

percentum in principal amount of the bonds then outstanding, such

declaration and its consequences.

3. The supreme court shall have jurisdiction of any suit, action or

proceeding by the trustee on behalf of the bondholders. The venue of any

such suit, action or proceeding shall be laid in New York county.

4. Before declaring the principal of all bonds due and payable the

trustee shall first give thirty days' notice in writing to the

Planetarium Authority.

5. Any such trustee, whether or not all bonds have been declared due

and payable, shall be entitled as of right to the appointment of a

receiver who may enter and take possession of the planetarium or any

part or parts thereof and operate and maintain the same and collect and

receive all admission fees and other revenues thereafter arising

therefrom in the same manner as the Planetarium Authority itself might

do and shall deposit all such moneys in a separate account and apply the

same in such manner as the court shall direct. 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 admission fees and other revenues derived from

the planetarium.

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 the bondholders in the enforcement and protection of

their rights.