N.Y. Public Authorities Law § 1114-h*2: Remedies of bondholders

* § 1114-h. 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 applicable county

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 outstanding

shall, in his or her 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 other 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, enjoin any acts or things which may be

unlawful or in violation of the rights of the holders of such bonds; and

(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. 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 incidental to the general

representation of bondholders in the enforcement and protection of their

rights.

4. The state supreme court, county of Nassau and the state shall have

jurisdiction of any action or proceeding by the trustee on behalf of

such bondholders.

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

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

authority.

* NB There are 2 § 1114-h's