NY Pub Auth L § 1207-H (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 9 - New York City Transit Authority 1207-H - Remedies of Bondholders and Noteholders.

§  1207-h.  Remedies  of  bondholders and noteholders. 1. In the event that the authority shall default in  the  payment  of  principal  of  or interest  on any issue of the bonds or notes 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 or notes,  the  holders  of  twenty-five  per  centum  in aggregate  principal  amount  of  the  bonds or notes of such issue then outstanding, by instrument or instruments filed in  the  office  of  the clerk  of  the  county  of New York, or Queens or the Bronx or Kings 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 or notes 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 or notes then outstanding shall, in his or its own name  (a) by a proceeding under article seventy-eight of the civil  practice act  or other suit, action or proceeding at law or in equity enforce all rights of the bondholders or noteholders, including the right to require the authority and the board to collect fares and  revenues  adequate  to carry  out  any  agreement as to, or pledge of, such fares and revenues, and to require the authority and  the  board  to  carry  out  any  other agreements  with  the  holders of such bonds or notes and to perform its and their duties under this title;  (b) bring suit upon such bonds or notes;  (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 or notes;  (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 or notes;  (e)  declare  all  such  bonds  or  notes  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 or notes 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 or noteholders.  The venue of any such suit, action or proceeding shall be laid in the county of New York, Queens, the Bronx, or Kings.   4. Before declaring the principal of all such bonds or notes  due  and payable  the  trustee shall first give thirty days' notice in writing to the authority and the city.   5. Any such trustee, whether or  not  the  issue  of  bonds  or  notes 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 fares or other revenues which are pledged for the security of the bonds or notes of such issue, and such  receiver  may  enter  and take  possession  of such part or parts of the transit facilities of the authority and, subject to any pledge or agreement  with  bondholders  or noteholders,  shall  take  possession  of  all moneys and other property derived from or applicable to  the  maintenance  and  operation  of  the transit  facilities  operated by the authority and operate, maintain and reconstruct such part or parts of said transit  facilities  and  collect and  receive  all fares and other revenues thereafter arising therefrom, subject  to  any  pledge  thereof  or  agreement  with  bondholders   or noteholders  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 fares and other revenues derived from such transit facilities.   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  or  noteholders  in the enforcement and protection of their rights.