N.Y. Medical Care Facilities Finance Agency 392/73 § 15: Remedies of noteholders and bondholders

§ 15. 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 act, 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 suit, action or 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 and

project 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, project loans 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 act;

(b) bring suit upon such notes or bonds;

(c) by action or suit, 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 suit, 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 obligations 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 state

commissioner of health and to the attorney general of the state.