N.Y. Public Authorities Law § 887: Remedies of bondholders

§ 887. Remedies of bondholders. 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 Monroe and proved or acknowledged in the same manner as a deed

to be recorded, may appoint a trustee to represent the bondholders 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 and the board

to collect rentals, and other charges adequate to carry out any

agreement as to, or pledge of, such rentals, fees and other charges and

to require the authority and the board 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 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 bondholders. The venue of any

such suit, action or proceedings shall be laid in Monroe 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 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

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 bondholders in the enforcement and protection of

their rights.