N.Y. Public Authorities Law § 1020-i*2: Remedies of bondholders

* § 1020-i. Remedies of bondholders. 1. In the event that the

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

any issue 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 authority 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, the holders of twenty-five per centum in aggregate principal

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

instruments filed in the office of the clerk of the county of Albany and

proved or acknowledged in the same manner as a deed to be recorded, may

appoint a trustee to represent the holders of such 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 bonds then

outstanding shall, in his or its own name:

(a) by action or proceeding in accordance with the civil practice law

and rules, enforce all rights of the bondholders and require the

authority to carry out any agreements with the holders of such bonds and

to perform its duties under this title;

(b) bring an action or proceeding upon such bonds;

(c) by action or proceeding, require the authority to account as if it

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

(d) by action or proceeding in equity, enjoin any acts or things which

may be unlawful or in violation of the rights of the holders of such

bonds;

(e) declare all such 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 bonds then outstanding, annul

such declaration and its consequences.

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

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

such action or proceeding shall be laid in the county of Albany.

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

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

authority.

5. Any such trustee whether or not the issue of bonds represented by

such trustee has been declared due and payable, shall be entitled as of

right to the appointment of a receiver of any part or parts of the

properties the revenues of which are pledged for the security of the

bonds of such issue and such receiver may enter and take possession of

such part or parts of the properties and subject to any pledge or

agreement with bondholders shall take possession of such part or parts

of such properties and proceed with any construction thereon or the

acquisition of any property, real or personal in connection therewith

which the authority is under obligation to do, and to operate, maintain

and reconstruct such part or parts of the properties and collect and

receive all revenues thereafter arising therefrom subject to any pledge

thereof or agreement with bondholders relating thereto and perform the

public duties and carry out the agreements and obligations of the

authority under the direction of the court. 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 revenues derived from the properties.

6. Such trustees 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 in the enforcement and protection of their

rights.

* NB There are 2 § 1020-i's