NY Transp L § 62 (2021)
2021 New York Laws TRA - Transportation Article 2-D - Utica Transit Authority 62 - Remedies Against the Utica Transit Authority.

§ 62. Remedies  against  the Utica transit authority. 1.  In an action or proceeding to foreclose a mortgage on property of the  Utica  transit authority,  the authority and all other necessary parties, shall be made parties defendant and shall take such steps in said  action  as  may  be necessary  to  protect the public interest therein and no costs shall be awarded against them. Wherever under the instrument creating  a  lien  a notice  of  default  in  writing is required to be served upon the Utica transit authority before the institution  of  a  foreclosure  action  or proceeding,  a  copy of such notice shall be served upon the chairman of the authority  at  least  five  days  before  the  institution  of  such proceedings.  At  such a sale of the property of the mass transportation authority pursuant to foreclosure or other proceedings, the municipality or municipalities within whose  territorial  jurisdiction  the  property exists  may  purchase  the  property  affected;  or such municipality or municipalities may, prior to the institution of a foreclosure action  or proceeding,  or  during  such  action or proceeding make such payment or take such other steps as may be necessary to cure any defaults that  may have occurred and such steps as may be necessary to protect the property of the Utica transit authority and the public interest.   2.  In the event that the Utica transit authority shall default in the payment of principal of or interest on an 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  the  authority shall fail or refuse to comply with the provisions of this article or shall default in an agreement with the holders of  an issue  of bonds then outstanding, the holders of twenty-five per cent of the  aggregate  principal  amount  of  the  bonds  of  the  issue   then outstanding  by  instrument  or  instruments  filed in the office of the clerk of the county in which the principal office of the  Utica  transit authority is situated and proved or acknowledged in the same manner as a deed  to  be recorded, may appoint a trustee to represent the holders of the bonds for the purposes herein provided. Such trustee may declare all the bonds due and payable, but before declaring  the  principal  of  the bonds  due  and  payable,  he  shall  first  give thirty days' notice in writing to the authority, and, if all defaults shall be made good,  then with the consent of the holders of twenty-five per cent of the aggregate principal  amount  of  the  bonds  then  outstanding, he shall annul the declaration and its consequences. He shall, in addition  to  any  powers granted by this section, have and possess all of the powers necessary or appropriate  for the exercise of functions specifically set forth herein or  incident  to  the  general  representation  of  bondholders  in  the enforcement and protection of their rights.   3.  In  addition to any other rights and remedies, but subject to such limitations  as  may  be  made  by  contract,  any  obligee,  lessor  or mortgagee,  or any trustee or agent designated in the bonds of the Utica transit authority or appointed as provided  in  paragraph  two  of  this section,  or  under  a resolution, mortgage or indenture executed by the Utica transit authority as security for its bonds may:  (a) bring suit upon the bonds of the Utica transit authority;  (b) by suit, action or special proceeding at law or in equity  enforce all  rights of the bondholders, including the right to require the Utica transit authority to collect revenues, rates, fares, fees,  rentals  and other  charges  adequate to carry out any agreement as to, or pledge of, such revenues, rates, fares, fees, rentals and  other  charges,  and  to require  the  authority  to  carry  out  any  other  agreement  with the bondholders and to perform its duties under this article;  (c) by suit, action or special proceeding at law or in  equity  compel the  authority  to  perform  each and every term, provision and covenant  contained in any agreement of the authority with  an  obligee,  trustee, mortgagee  or  lessor  and  require  the  performance of any or all such covenants and agreements of the  Utica  transit  authority  and  of  the duties imposed upon such authority by this article;  (d) by action or suit, enjoin any acts or things which may be unlawful or  in  violation  of the rights of such obligee, trustee, mortgagee, or lessor;  (e)  by  suit,  action  or  proceeding  in  any  court  of   competent jurisdiction  compel possession of any project or any part thereof to be surrendered to such obligee, trustee, mortgagee, or  lessor  having  the right to such possession under any agreement with the authority;  (f)   by  suit,  action  or  proceeding  in  any  court  of  competent jurisdiction obtain the appointment  of  a  receiver  of  any  municipal project  of the mass transportation authority or any part thereof and of the rents and profits therefrom. If such receiver be appointed,  he  may enter  and  take possession of such project or any part or parts thereof and operate and maintain the same, and collect  and  receive  all  fees, rates,  fares,  rents,  revenues,  or  other  charges thereafter arising therefrom in the same manner as the Utica transit authority itself might do, and shall keep such moneys in a separate  account  or  accounts  and apply  the  same  in accordance with the obligations of the authority as the court shall direct;  (g) by action or suit require the Utica transit authority  to  account as if it were the trustee of an express trust.   4.  The  supreme court of the state shall have jurisdiction of a suit, action or proceeding by a trustee on behalf of  the  bondholders.    The venue  of  the suit, action or proceeding shall be laid in the county in which the principal office of the Utica transit authority is situated.   5. In a suit, action or proceeding by a trustee for the bond  holders, 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 courts shall be a first charge on revenues, rates, fares, fees, rentals and other charges derived from the municipal project.