N.Y. TRA Law § 62 — New York Code / Act TRA / Article 2-D / Section 62
Remedies against the Utica transit authority
Status: in_force

§ 62. Remedies against the Utica transit authority. 1.  In an action\nor proceeding to foreclose a mortgage on property of the Utica transit\nauthority, the authority and all other necessary parties, shall be made\nparties defendant and shall take such steps in said action as may be\nnecessary to protect the public interest therein and no costs shall be\nawarded against them. Wherever under the instrument creating a lien a\nnotice of default in writing is required to be served upon the Utica\ntransit authority before the institution of a foreclosure action or\nproceeding, a copy of such notice shall be served upon the chairman of\nthe authority at least five days before the institution of such\nproceedings. At such a sale of the property of the mass transportation\nauthority pursuant to foreclosure or other proceedings, the municipality\nor municipalities within whose territorial jurisdiction the property\nexists may purchase the property affected; or such municipality or\nmunicipalities may, prior to the institution of a foreclosure action or\nproceeding, or during such action or proceeding make such payment or\ntake such other steps as may be necessary to cure any defaults that may\nhave occurred and such steps as may be necessary to protect the property\nof the Utica transit authority and the public interest.\n  2. In the event that the Utica transit authority shall default in the\npayment of principal of or interest on an issue of bonds after the same\nshall become due, whether at maturity or upon call for redemption, and\nsuch default shall continue for a period of thirty days, or, in the\nevent the authority shall fail or refuse to comply with the provisions\nof this article or shall default in an agreement with the holders of an\nissue of bonds then outstanding, the holders of twenty-five per cent of\nthe aggregate principal amount of the bonds of the issue then\noutstanding by instrument or instruments filed in the office of the\nclerk of the county in which the principal office of the Utica transit\nauthority is situated and proved or acknowledged in the same manner as a\ndeed to be recorded, may appoint a trustee to represent the holders of\nthe bonds for the purposes herein provided. Such trustee may declare all\nthe bonds due and payable, but before declaring the principal of the\nbonds due and payable, he shall first give thirty days' notice in\nwriting to the authority, and, if all defaults shall be made good, then\nwith the consent of the holders of twenty-five per cent of the aggregate\nprincipal amount of the bonds then outstanding, he shall annul the\ndeclaration and its consequences. He shall, in addition to any powers\ngranted by this section, have and possess all of the powers necessary or\nappropriate for the exercise of functions specifically set forth herein\nor incident to the general representation of bondholders in the\nenforcement and protection of their rights.\n  3. In addition to any other rights and remedies, but subject to such\nlimitations as may be made by contract, any obligee, lessor or\nmortgagee, or any trustee or agent designated in the bonds of the Utica\ntransit authority or appointed as provided in paragraph two of this\nsection, or under a resolution, mortgage or indenture executed by the\nUtica transit authority as security for its bonds may:\n  (a) bring suit upon the bonds of the Utica transit authority;\n  (b) by suit, action or special proceeding at law or in equity enforce\nall rights of the bondholders, including the right to require the Utica\ntransit authority to collect revenues, rates, fares, fees, rentals and\nother charges adequate to carry out any agreement as to, or pledge of,\nsuch revenues, rates, fares, fees, rentals and other charges, and to\nrequire the authority to carry out any other agreement with the\nbondholders and to perform its duties under this article;\n  (c) by suit, action or special proceeding at law or in equity compel\nthe authority to perform each and every term, provision and covenant\ncontained in any agreement of the authority with an obligee, trustee,\nmortgagee or lessor and require the performance of any or all such\ncovenants and agreements of the Utica transit authority and of the\nduties imposed upon such authority by this article;\n  (d) by action or suit, enjoin any acts or things which may be unlawful\nor in violation of the rights of such obligee, trustee, mortgagee, or\nlessor;\n  (e) by suit, action or proceeding in any court of competent\njurisdiction compel possession of any project or any part thereof to be\nsurrendered to such obligee, trustee, mortgagee, or lessor having the\nright to such possession under any agreement with the authority;\n  (f) by suit, action or proceeding in any court of competent\njurisdiction obtain the appointment of a receiver of any municipal\nproject of the mass transportation authority or any part thereof and of\nthe rents and profits therefrom. If such receiver be appointed, he may\nenter and take possession of such project or any part or parts thereof\nand operate and maintain the same, and collect and receive all fees,\nrates, fares, rents, revenues, or other charges thereafter arising\ntherefrom in the same manner as the Utica transit authority itself might\ndo, and shall keep such moneys in a separate account or accounts and\napply the same in accordance with the obligations of the authority as\nthe court shall direct;\n  (g) by action or suit require the Utica transit authority to account\nas if it were the trustee of an express trust.\n  4. The supreme court of the state shall have jurisdiction of a suit,\naction or proceeding by a trustee on behalf of the bondholders.  The\nvenue of the suit, action or proceeding shall be laid in the county in\nwhich the principal office of the Utica transit authority is situated.\n  5. In a suit, action or proceeding by a trustee for the bond holders,\nthe fees, counsel fees and expenses of the trustee and of the receiver,\nif any, shall constitute taxable disbursements and all costs and\ndisbursements allowed by the courts shall be a first charge on revenues,\nrates, fares, fees, rentals and other charges derived from the municipal\nproject.\n