NY Pub Auth L § 1147-L (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 6-D - Alfred, Almond, Hornellsville Sewer Authority 1147-L - Remedies of Bondholders.

§  1147-l.  Remedies  of  bondholders.  Subject  to  any resolution or resolutions adopted pursuant  to  subdivision  five  of  section  eleven hundred forty-seven-k of this title:   1.  In  the  event  that the authority shall default in the payment of 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 county of  Allegany and proved or acknowledged in the same manner as 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 per centum in principal amount of  such  bonds  outstanding, shall in 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, fees and charges adequate to carry out any agreement as to, or pledge of, such rents, rates,  fees 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 any 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 state 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 Allegany.   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 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 the properties and shall take  possession  of  all moneys  and  other  property  derived  from  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.