NY Pub Auth L § 2050-I (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 13-G - Ulster County Resource Recovery Agency 2050-I - Remedies of Bondholders.

§  2050-i.  Remedies  of  bondholders.  Subject  to  any resolution or resolutions adopted pursuant to paragraph (j) of  subdivision  three  of section two thousand fifty-h of this title:   1.  In  the  event  that  the  agency  shall default in the payment of principal or of interest on any issue of  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 agency 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  bonds,  the  holders  of  twenty-five  percent  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 purpose herein provided.   2. Such trustee may,  and  upon  written  request  of  the  holder  of twenty-five  per  centum  in principal amount of such bonds outstanding, shall in his or 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 agency to collect rents, rates and charges adequate to carry out  any agreement as to, or pledge of such rents, rates and charges and to require the agency to carry out any other agreements with the holders of such bonds to perform its duties under this title;  (b) Bring an action or proceeding upon such bonds;  (c) By action or proceeding, require the agency 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, to  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  incident to the general representation of bondholders in the enforcement and protection of their rights.   4. The  supreme  court  shall  have  jurisdiction  of  any  action  or proceeding  by  the  trustee on behalf of such bondholders. The venue of any such action or proceeding shall be laid in the county.   5. Before declaring the  principal  of  bonds  due  and  payable,  the trustee shall first give thirty days notice in writing to the agency.   6.  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 project the revenues of which are pledged for the security of the  bonds of  such  issue  and such receiver may enter and take possession of such part or parts of the project and subject to any pledge or agreement with holders of such bonds, shall take possession of  all  moneys  and  other property derived from such part or parts of the project and proceed with any  construction  thereon  or  the acquisition of any property, real or personal, in connection therewith that the agency is under obligation to do, and to operate, maintain and reconstruct such part or parts  of  the project   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 agency  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 project.