N.Y. Real Property Law § 130-f: Actions for accounting by minority groups; expenses thereof

§ 130-f. Actions for accounting by minority groups; expenses thereof.

In any special proceeding or action brought by or on behalf of any

minority bondholder or group of minority bondholders, or any person or

group of persons not holding at least fifty-one per centum of the stock

or bonds of the mortgage issue, but claiming an interest in the trust

property, for a judicial accounting, the court may take into

consideration the information as to income and disbursements theretofore

furnished to bondholders, the merits and good faith of the proceeding or

action, and whether the accounting will be of value to the bondholders,

as well as the cost of such accounting, and the court may require that

the petitioner or plaintiff furnish a surety company bond to indemnify

the estate against the expenses of the accounting, including fees of the

referee to take the accounting, stenographic fees, and the expenses of

the trustee, and may direct that, if it should appear that the

accounting result in any practical benefit to all the bondholders, the

court should then, in its discretion, release the indemnity, and that if

no such benefit accrue, the petitioner or plaintiff and his attorney

should receive no compensation, and the trust fund should be reimbursed

for the expenses saddled upon it by reason thereof.