NY Pub Auth L § 2049-II (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 13-FF - Oneida-Herkimer Solid Waste Management Authority 2049-II - Remedies of Bondholders.

§  2049-ii.  Remedies  of  bondholders.  Subject  to any resolution or resolutions  adopted  pursuant  to  subdivision  three  of  section  two thousand forty-nine-hh of this title:   1.  In  the  event  that the authority 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 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  bonds,  the  holders  of twenty-five percent in the 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 in  which the principal office of the authority is located 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  authority  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 authority 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 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, 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 where the principal office of the authority is located.   5. Before declaring the  principal  of  bonds  due  and  payable,  the trustee shall first give thirty days notice in writing to the authority.   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 authority 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  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 project.