NY Pub Auth L § 1294 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 12 - New York State Environmental Facilities Corporation 1294 - Remedies of Noteholders and Bondholders.

§  1294. Remedies of noteholders and bondholders. 1. In the event that the corporation shall default in the payment of principal of or interest on any issue of notes or bonds after the same shall become due,  whether on  any  sinking  fund  payment  date,  at  maturity  or  upon  call for redemption, and such default shall continue for a period of thirty days, or in the event that the corporation 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 notes or bonds, the holders  of  twenty-five per  centum  in aggregate principal amount of the notes or bonds of such issue then outstanding, by instrument or instruments filed in the office of the clerk of the county of Albany and proved or acknowledged  in  the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such notes or 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 notes or  bonds  then outstanding shall, in his or its own name;  (a)  by  suit,  action  or  proceeding  in  accordance  with the civil practice law and  rules,  enforce  all  rights  of  the  noteholders  or bondholders,  including  the right to require the corporation to collect rentals, rates, charges and other  fees  and  to  collect  interest  and amortization  payments  on municipal bonds and notes and bonds and notes of any state agency held by it adequate to carry out  any  agreement  as to,  or  pledge  of,  such rentals, rates, charges and other fees and of such interest and amortization payments, and to require the  corporation to  carry  out  any  other  agreements with the holders of such notes or bonds and to perform its duties under this title;  (b) bring suit upon such notes or bonds;  (c) by action or suit, require the corporation to  account  as  if  it were  the  trustee  of an express trust for the holders of such notes or bonds;  (d) by action or suit, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such notes or bonds;  (e) declare all such notes or  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  notes  or  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 or  noteholders  in  the  enforcement  and protection of their rights.   4.  The  supreme  court shall have jurisdiction of any suit, action or proceeding by the trustee on behalf of such noteholders or  bondholders. The  venue  of  any such suit, action or proceeding shall be laid in the county of Albany.   5. Before declaring the principal of notes or bonds due  and  payable, the  trustee  shall  first  give  thirty  days' notice in writing to the governor, to the corporation, to the comptroller  and  to  the  attorney general of the state.