N.Y. New York City health and hospitals corporation act 1016/69 § 17: Remedies of holders of bonds and notes

§ 17. Remedies of holders of bonds and notes. 1. In the event that the

corporation shall default in the payment of the principal of or interest

on any issue of bonds or notes 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 corporation 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

or notes, the holders of twenty-five per centum in aggregate principal

amount of the bonds or notes of such issue then outstanding, by

instrument or instruments filed in the office of the city clerk of the

city and approved or acknowledged in the same manner as a deed to be

recorded, may appoint a trustee to represent the holders of such bonds

or notes 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 or notes then

outstanding shall, in his or its own name:

(a) by suit, action or special proceedings enforce all rights of the

holders of the bonds or notes, including the right to require the

corporation to carry out any agreements with such holders and to perform

its duties under this title;

(b) bring suit upon such bonds or notes;

(c) by action or suit, require the corporation to account as if it

were the trustee of an express trust for the holders of such bonds or

notes;

(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 bonds or notes;

(e) declare all such bonds or notes 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 or notes

then outstanding, annul such declaration and its consequences.

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

proceedings by the trustee on behalf of such holders of bonds or notes.

The venue of any such suit, action or proceeding shall be laid in the

county of New York.

4. Before declaring the principal of bonds or notes due and payable,

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

corporation.

5. Any such trustee, whether or not all bonds or notes 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 a health

facility or any part or parts thereof and maintain and repair the same

and collect and receive all fees, rentals and charges or other revenues

thereafter arising therefrom in the same manner as the corporation

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, including 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 rentals, charges or other

revenues derived from a health facility.

6. Such trustee shall in addition to the foregoing have and possess

all the powers necessary or appropriate for the exercise of any function

specifically set forth herein or incident to the general representation

of the holders of such bonds or notes in the enforcement and protection

of their rights.