N.Y. Public Authorities Law § 3664: Remedies of bondholders

§ 3664. Remedies of bondholders. Subject to any resolution or

resolutions adopted pursuant to paragraph (f) of subdivision seven of

section thirty-six hundred fifty-six 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 shall default in

any agreement made with the holders of any issue of bonds, the holders

of at least 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 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 at

least 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 holder of such bonds; and

(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.

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.