N.Y. Public Authorities Law § 210: Rights and remedies of creditors

* § 210. Rights and remedies of creditors. 1. All real and personal

property, including fees and revenues of the authority and debts owing

to it are exempt from levy and sale by virtue of an execution and no

execution or other judicial process shall issue against the same. No

judgment against the authority shall be a charge upon real property or

chattels real of the authority. This clause shall not limit the rights

of mortgagees and pledgees to enforce their lien or other rights by any

appropriate suit, action or proceeding.

2. Any purchaser at a sale of property of the authority pursuant to a

judgment in an action to foreclose a mortgage thereon shall obtain title

free from any trust or other obligation to operate or maintain such

property as a public park or public recreation center and free from any

obligation to the public or the state as to its use or disposition.

3. Any creditor of the authority, including a trustee for bondholders,

shall have the right, subject to any contractual limitations binding

upon such creditor or trustee, and subject to the prior or superior

rights of others,

(a) by suit, action or special proceeding, to enforce his rights

against the authority and the board, including the right to require the

authority and the board to collect fees and revenues adequate to carry

out any agreement as to, or pledge of, such fees and revenues and to

require the authority and the board to carry out any other covenants and

agreements and to perform its and their duties under this title;

(b) by action or suit in equity to require the authority to account as

if it were the trustee of an express trust;

(c) by action or suit in equity to enjoin any acts or things which may

be unlawful or in violation of the rights of such creditor;

(d) in the discretion of the court to the appointment of a receiver of

the property of the authority or any part or parts thereof, who may

enter and take possession of the property of the authority or any part

or parts thereof, and operate and maintain the same and collect and

receive all fees, rentals and other revenues thereafter arising

therefrom in the same manner as the authority itself might do, and shall

deposit all such moneys in a separate account and apply the same in

accordance with the obligations of the authority as the court shall

direct. The authority may give the holders of its bonds or any trustee

for their benefit by agreement the right to the appointment of a

receiver.

* NB (Abolished in 1975)