NY Pub Auth L § 1120-I (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 6-B - Clifton Park Water Authority 1120-I - Remedies of Bondholders.

§  1120-i.  Remedies  of  bondholders.  Subject  to  any resolution or resolutions adopted pursuant to paragraph (j)  of  subdivision  four  of section one thousand one hundred twenty-h of this title:   1.  In  the event that the authority shall default in the principal of or 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 aggregate principal  amount of   the  bonds  of  such  issue  then  outstanding,  by  instrument  or instruments filed in the office of the clerk of the town 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 holders of twenty-five percent in principal amount of such bonds outstanding, shall in his, her 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 percent  of  the  principal amount of such bonds then outstanding, 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 of Saratoga, New York.   5. 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 properties  the  revenues  of  which are pledged for the security of the bonds of such issue, and subject to any pledge or agreement with holders of such bonds, such receiver may enter and take possession of such  part or parts of such properties 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  properties  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 properties.