N.Y. Public Authorities Law § 1475-p: Remedies of bondholders

§ 1475-p. Remedies of bondholders. Subject to any resolution or

resolutions adopted pursuant to this title:

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 Onondaga 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 provided in this section.

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, 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 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;

(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 Onondaga.

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 necessary real property 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 aforegoing, 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.