N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 512: Remedies of holders of bonds and notes

§ 512. Remedies of holders of bonds and notes. 1. In the event that a

corporation defaults in the payment of the principal of or interest on

any issue of bonds or notes after the same becomes due, whether at

maturity or upon call for redemption, and such default continues for a

period of thirty days, or in the provisions of this article, or defaults

in any agreement made with the holders of any issue of the bonds or

notes, the holders of twenty-five percent in aggregate principal amount

of the bonds or notes of such issue then outstanding, by instrument or

instruments filed in the office of the clerk of any county in which the

corporation operates and approved or acknowledged in the same manner as

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

such bonds or notes for the purposes herein provided.

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

twenty-five percent in principal amount of such bonds or notes then

outstanding shall, in his, her or its own name:

a. by suit, action or special proceedings enforce all rights of the

holders of the bonds or notes, including the right to require the

corporation to carry out any agreements with such holders and to perform

its duties under this title;

b. bring suit upon such bonds or notes;

c. by action or suit, require the corporation to account as if it were

the trustee of an express trust for the holders of such bonds or notes;

d. by action or suit, enjoin any acts or things that may be unlawful

or in violation of the rights of the holders of such bonds or notes; and

e. declare all such bonds or notes due and payable, and if all

defaults shall be made good, then, with the consent of the holders of

twenty-five percent of the principal amount of such bonds or notes then

outstanding, annul such declaration and its consequences.

3. The supreme court shall have jurisdiction of any suit, action or

proceedings by the trustee on behalf of such holders of bonds or notes.

The venue of any such suit, action or proceeding shall be in the

judicial district in which the principal office of the corporation is

located.

4. Before declaring the principal of bonds or notes due and payable,

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

corporation, the governor, the comptroller and the attorney general of

the state.

5. Any such trustee, whether or not the issue of bonds represented by

such trustee has been declared due and payable, shall be entitled as of

right to the appointment of a receiver of the revenues which are pledged

for the security of the bonds of such issue, and such receiver may enter

and take possession of the premises, equipment and property which the

corporation is operating or is entitled to use or occupy, and shall take

possession of all revenues of the corporation and other moneys to which

the corporation is entitled, and shall proceed to conduct pari-mutuel,

off-track betting pursuant to the provisions of this article in the

place and stead of the corporations from which otherwise, under such

article, would constitute revenues of the corporation and shall perform

the public duties and carry out the agreements and obligations of the

corporation under the direction of the court. In any 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 allowed by the court and shall be a first charge on any

revenues of the corporation.

6. Such trustee shall in addition to the foregoing have and possess

all the powers necessary or appropriate for the exercise of any function

specifically set forth herein or incident to the general representation

of the holders of such bonds or notes in the enforcement and protection

of their rights.