NY Pub Auth L § 1199-IIII (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 8-G - Cayuga County Water and Sewer Authority 1199-IIII - Remedies of Bondholders.

* §  1199-iiii.  Remedies of bondholders. Subject to any resolution or resolutions adopted pursuant to paragraph (j)  of  subdivision  four  of section one thousand one hundred ninety-nine-hhhh of this title:   1.  In  the  event  that the authority shall default in the payment of principal of or interest on any issue 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  any issue  of  the bonds, the holders of twenty-five per centum in aggregate principal amount of  the  bonds  of  such  issue  then  outstanding,  by instrument or instruments filed in the office of the clerk of the county and  proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of  such  bonds  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  such  bonds  outstanding shall, in its own name:  (a)  by action or proceeding in accordance with the civil practice law and rules, enforce all rights of the bondholders including the right  to require the authority to collect rents, rates, fees and charges adequate to  carry  out  any agreement as to, or pledge of, such rents, rates and charges, and to require the authority to carry out any other  agreements with  the  holders  of  such  bonds and to perform its duties under this title;  (b) bring an action or proceeding upon such bonds;  (c) by action or proceeding, require the authority to account as if it were the trustee of an express trust for the holders of such bonds;  (d) by action or proceeding, enjoin any acts or things  which  may  be unlawful or in violation of the rights of the holders of such bonds; and  (e)  declare all such bonds due and payable, and if all defaults shall be made good, then with the consent of the holders  of  twenty-five  per centum  of  the  principal  amount of such bonds then outstanding, annul such declaration and its consequences.   3. 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  incidental  to  the  general representation of bondholders in the enforcement and protection of their rights.   4.  The  state  supreme court shall have jurisdiction of any action or proceeding by the trustee on behalf of such bondholders.  Venue  of  any such action or proceeding shall be laid in the county.   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 any part or parts of the properties the revenues of which are pledged for  the  security  of  the bonds  of  such  issue,  and,  subject  to  any pledge or agreement with holders of such bonds, such receiver may enter and  take  possession  of such  part  or  parts of the properties and shall take possession of all moneys and other property derived  from  such  part  or  parts  of  such properties  and proceed with any construction thereon or the acquisition of any property, real or personal, in  connection  therewith  which  the authority  is  under  obligation  to  do,  and  to operate, maintain and reconstruct such part or parts of the properties and collect and receive all revenues thereafter arising therefrom subject to any pledge  thereof or  agreement  with  bondholders relating thereto and perform the public duties and carry out the agreements and  obligations  of  the  authority under  the  direction of the court. 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 properties.   6.  Before  declaring  the  principal  of  bonds  due and payable, the trustee  shall  first  give  thirty  days'  notice  in  writing  to  the authority.   * NB There are 2 § 1199-iiii's