N.Y. Public Authorities Law § 2799-oo: Remedies of bondholders

§ 2799-oo. Remedies of bondholders. Subject to any resolution or

resolutions adopted pursuant to paragraph (g) of subdivision six of

section twenty-seven hundred ninety-nine-gg of this title:

1. In the event that the authority shall default in the payment of

principal of or interest on any issue of 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 bonds, the holders of twenty-five percent 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 city

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

purpose 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 outstanding

shall, in his or her or its 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 provisions of subdivisions

one and two of this section, have and possess all of the powers

necessary or appropriate for the exercise of any functions specifically

set forth in this section or incident to the general representation of

bondholders in the enforcement and protection of their rights.

4. The supreme court shall have jurisdiction of any action or

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

any such action or proceeding shall be laid in the county of New York.

5. Before declaring the principal of bonds due and payable, the

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

authority.