NY Pub Auth L § 1115-O (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 6 - Albany Municipal Water Finance Authority 1115-O - Remedies of Bondholders.

§  1115-o.  Remedies  of  bondholders.  Subject  to  any resolution or resolutions adopted pursuant to paragraph (i)  of  subdivision  four  of section one thousand one hundred fifteen-n 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 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 city 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  per  centum  in  principal amount of such bonds outstanding shall, in his or its own name:  (a) by action or proceeding in accordance with the civil practice  law and  rules,  enforce  all  rights  of  the  bondholders  and 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 per centum 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 shall be laid in the county of Albany.   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 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.