N.Y. Public Authorities Law § 1130: Remedies of bondholders

* § 1130. Remedies of bondholders. Subject to any resolution or

resolutions adopted pursuant to paragraph (j) of subdivision four of

section one thousand one hundred twenty-nine of this title:

1. In the event that the authority shall default in the principal of

or interest on any issue of 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

bonds, the holders of twenty-five percent 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 town 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 purpose herein

provided.

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

twenty-five percent in principal amount of such bonds outstanding, shall

in his, her or its own name:

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

and rules, enforce all rights of the bondholders, including the right to

require the authority to collect rents, rates and charges adequate to

carry out any agreement as to, or pledge of, such rents, rates and

charges and to require the authority to carry out any other agreements

with the holders of such bonds 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

percent 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 incident to the general

representation of bondholders in the enforcement and protection of their

rights.

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

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

any such action or proceeding shall be laid in the county of Saratoga,

New York.

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 subject to any pledge or agreement with holders

of such bonds, such receiver may enter and 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.

* NB There are 2 § 1130's