NY Pub Auth L § 1983 (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 12 1983 - Remedies of Bondholders.

§  1983.  Remedies  of bondholders. 1. In the event that the authority shall default in the payment of principal of or interest on any issue of the 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 the bonds,  the  holders of  twenty-five per centum in aggregate principal amount of the bonds of such issue then outstanding, by instrument or instruments filed  in  the office of the Register of the city of New York in the county of New York 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 purposes herein provided.   2.  Such  trustee  may,  and  upon  written  request of the holders of twenty-five  per  centum  in  principal  amount  of  such   bonds   then outstanding shall, in his or its own name  (a)  by  mandamus  or  other  suit,  action or proceeding at law or in equity enforce all rights of the bondholders,  including  the  right  to require  the  authority  to  collect  revenues, rates, rentals, fees and other charges adequate to carry out any agreement as to,  or  pledge  of such revenues, rates, rentals, fees and other charges and to require the authority  to  carry  out  any other agreements with the holders of such bonds and to perform its duties under this title;  (b) bring suit upon such 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 holders of such bonds;  (d) by action or suit in equity, enjoin any acts or things  which  may be unlawful or in violation of the rights of the holders of such bonds;  (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. The supreme court shall have jurisdiction of any  suit,  action  or proceeding by the trustee on behalf of bondholders.   4.  Before  declaring  the principal of all such bonds due and payable the trustee shall first give thirty  days'  notice  in  writing  to  the authority.   5.  Any  such trustee whether or not the issue of bonds represented by such trustee be 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  such  project,  and,  subject to any pledge or agreement with bondholders, shall take possession of  all  moneys  and  other  property derived  from  such  part  or parts of such project and proceed with any construction thereon  or  the  acquisition  of  any  property,  real  or personal,   in   connection  therewith  which  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.    6. Such trustees 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.