N.Y. Public Authorities Law § 3963: Remedies of bondholders

§ 3963. Remedies of bondholders. Subject to any resolution or

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

section thirty-nine hundred sixty-two 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, notes or other obligations 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,

notes, or other obligations, the holders of at least twenty-five per

centum in aggregate principal amount of the bonds, notes or other

obligations 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, notes or other

obligations 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, notes or

other obligations 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 holders of such bonds, notes or other

obligations and require the authority to carry out any other agreements

with the holders of such bonds, notes or other obligations and to

perform its duties under this title; (b) bring an action or proceeding

upon such bonds, notes or other obligations; (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, notes or other

obligations; 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, notes or other obligations.

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

holders of bonds, notes or other obligations in the enforcement and

protection of their rights.

4. The supreme court of the county shall have jurisdiction of any

action or proceeding by the trustee on behalf of such holders of bonds,

notes or other obligations.