N.Y. Public Authorities Law § 1197-h: Remedies of bondholders

§ 1197-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 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.