NY Pub Auth L § 1621-P (2021)
2021 New York Laws PBA - Public Authorities Article 7 - Parking Authorities Title 21 - Middletown Parking Authority 1621-P - Remedies of Bondholders.

§  1621-p. 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 clerk of the county of Orange 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 the trustee's 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 adequate to carry out by any agreement as to, or  pledge  of,  such  revenues,  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. The venue of any such suit, action or proceeding shall be laid in the county of Orange.   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 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 bondholders, shall take possession of all moneys and other property derived from or applicable to the acquisition, construction,  operation, maintenance  and reconstruction of such part or parts of the project and proceed  with  the  acquisition  of  any  real  property  necessary   or convenient  in  connection  with  the  project  that  the  authority has covenanted to construct, and with any construction 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  fee,  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 such project.   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 bondholders in the enforcement and protection of their rights.