NY Pub Auth L § 1192 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 8 - Buffalo Sewer Authority 1192 - Remedies of Bondholders.

§  1192.  Remedies  of bondholders. 1. In the event that the authority shall default in the payment of principal of, or interest on, any of the bonds after the said principal or interest 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 the bonds, the holders of twenty-five per centum in aggregate principal  amount  of  the  bonds then  outstanding,  by  instrument or instruments filed in the office of the clerk of the county of Erie and proved or acknowledged in  the  same manner  as a deed to be recorded, may appoint a trustee to represent the bondholders 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 the bonds then outstanding shall, in his or its own name:  (a)  by  suit,  action or special proceeding enforce all rights of the bondholders, including the rights to require the authority and the board to collect rates, rentals and other charges adequate to  carry  out  any agreement  as  to,  or  pledge of, the revenues of the authority, and to require the authority and the board to carry out  any  other  agreements with  the  bondholders  and  to  perform its and their duties under this title;  (b) bring suit upon the bonds;  (c) by action or suit in equity, require the authority to  account  as if it were the trustee of an express trust for the bondholders;  (d)  by  action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the bondholders;  (e) declare all 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 the bonds then outstanding,  to  annul such declaration and its consequences.   3.  The  supreme  court shall have jurisdiction of any suit, action or proceeding by the trustee on behalf of the bondholders. The venue of any such suit, action or proceeding shall be laid in the county of Erie.   4. Before declaring the principal of all bonds due  and  payable,  the trustee  shall  first  give  thirty  days'  notice  in  writing  to  the authority.   5. Any such trustee, whether or not all bonds have been  declared  due and  payable,  shall  be  entitled  as  of right to the appointment of a receiver who may enter and take possession  of  the  facilities  of  the authority  or  any  part  or  parts thereof and operate and maintain the same, and collect and receive all rentals and other revenues  thereafter arising  therefrom  in  the  same  manner as the authority and the board might do and shall deposit all such moneys in  a  separate  account  and apply  the  same  in such manner as the court shall direct. 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 rentals and other revenues derived from the facilities of the authority.   6. 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  the bondholders in the enforcement and protection of their rights.