N.Y. Public Authorities Law § 1470-o: Remedies of bondholders

* § 1470-o. 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 Oneida 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 mandamus or other suit, action or proceeding at law or in

equity enforce all rights of the bondholders, including the right to

require the authority to collect revenues adequate to carry out by any

agreement as to, or pledge of, such revenues, and to 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 suit upon such bonds;

(c) by action or suit in equity, 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 suit 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, to annul

such declaration and its consequences.

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

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

such suit, action or proceeding shall be laid in the county of Oneida.

4. Before declaring the principal of all such 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

project 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 project and, subject to any pledge or agreement

with bondholders, shall take possession of all moneys and other property

derived from or applicable to the acquisition, construction, operation,

maintenance and reconstruction of such part or parts of the project and

proceed with the acquisition of any real property necessary or

convenient in connection with the project that the authority has

covenanted to construct, and with any construction which the authority

is under obligation to do and to operate, maintain and reconstruct such

part or parts of the project 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 fee, 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 such project.

6. 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.

* NB City of Rome Parking Authority ceased to exist 12/31/2000 per §

1470-b, and thereafter until all liabilities have been met/discharged,

and all bonds paid/discharged