N.Y. Public Authorities Law § 836: Remedies of bond holders

§ 836. Remedies of bond holders. 1. In the event that the authority

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

the 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 the bonds, the holders of twenty-five

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

by instrument or instruments filed in the office of the clerk of the

county of Onondaga and proved or acknowledged in the same manner as a

deed to be recorded, may appoint a trustee to represent the bond holders

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

bond holders, including the right to require the authority and the board

to collect rentals, license fees, and other revenues adequate to carry

out any agreement as to, or pledge of, such rentals and to require the

authority and the board to carry out any other agreements with the bond

holders and to perform its and their 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 bond holders;

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

be unlawful or in violation of the rights of the bond holders;

(e) declare all bonds due and payable and if any default 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 bond holders. The venue of

any such suit, action or proceeding shall be laid in Onondaga county.

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 properties of the

authority then under the jurisdiction of the authority or any part or

parts thereof and operate and maintain the same and collect and receive

all rentals, license fees and other revenues thereafter arising

therefrom and exercise such other powers of the authority as the court

may deem advisable in the same manner as the authority itself might do

and shall deposit all such moneys in a separate account or accounts 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 rentals and other revenues derived from the

marketing facilities.

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 bond holders in the enforcement and protection of

their rights.