N.Y. Public Authorities Law § 2066: Remedies of bondholders

* § 2066. Remedies of bondholders. a. 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 Broome 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.

b. 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

(1) by 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;

(2) bring suit upon such bonds;

(3) by action in suit in equity, require the authority to account as

if it were the trustee of an express trust for the holders of such

bonds;

(4) 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;

(5) 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.

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

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

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

d. Before declaring the principal of all such bonds due and payable,

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

authority.

e. 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 the 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 construction, operation, maintenance

and reconstruction of such part or parts of the project and proceed with

any construction thereon 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 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 such project.

f. The 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 Authority dissolved September 1, 1977