N.Y. Public Authorities Law § 707: Remedies of bondholders

§ 707. Remedies of bondholders. 1. In the event that the authority

shall default in the payment of principal of or interest on any of the

bonds after the same shall have 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 the bonds, the holders of twenty-five

per centum in aggregate principal amount of the bonds then outstanding,

by an instrument or instruments in writing filed in the office of the

clerk of the county of Saint Lawrence 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.

2. Such trustee may, and upon written request of the holders of

twenty-five per centum in principal amount of the bonds then outstanding

shall, in his or its own name

(a) by suit, action or special proceeding enforce all rights of the

bondholders, including the right to require the authority to collect

tolls and revenues adequate to carry out any agreement as to, or pledge

of, such tolls and revenues, and to require the authority to carry out

any other agreements with the bondholders and to perform its duties

under this title;

(b) bring suit upon the bonds;

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

if it were the trustee of an express trust for the bondholders;

(d) by action or suit in equity, enjoin any acts or things which may

be unlawful or in violation of the rights of the bondholders;

(e) declare all of the outstanding bonds due and payable, and if all

defaults shall be made good to annul such declaration and its

consequences.

3. 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 Saint

Lawrence.

4. Before declaring the principal of all bonds due and payable the

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

authority.

5. Any such trustee, whether or not all bonds have been declared due

and payable, shall be entitled as of right to the appointment of a

receiver who may enter and take possession of the bridge and any

approach roads and the ferry or ferries then under the jurisdiction of

the authority or any part or parts thereof and operate and maintain the

same and collect and receive all tolls and other revenues thereafter

arising from the operation thereof 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 such manner as the court shall direct. 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 tolls and other revenues derived

from the operation of the bridge and the ferry or ferries.

6. Such 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 the bondholders in the enforcement and protection of

their rights.