NY Priv Hous Fin L § 50 (2021)
2021 New York Laws PVH - Private Housing Finance Article 3 - New York State Housing Finance Agency 50 - Remedies of Noteholders and Bondholders.

§  50.  Remedies  of noteholders and bondholders. 1. In the event that the agency shall default in the payment of principal of or  interest  on any  issue of notes or 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 agency shall fail or refuse to comply with  the  provisions  of  this  article,  or  shall default  in any agreement made with the holders of any issue of notes or bonds, the holders of twenty-five  per  centum  in  aggregate  principal amount  of  the  notes  or  bonds  of  such  issue  then outstanding, by instrument or instruments filed in the office of the clerk of the county of Albany and approved or acknowledged in the same manner as a  deed  to be  recorded,  may  appoint  a  trustee to represent the holders of such notes or 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 notes or bonds then outstanding shall, in his or its own name:  (a) by action or special  proceeding  in  accordance  with  the  civil practice  law  and  rules,  enforce  all  rights  of  the noteholders or bondholders, including the right to require the agency to  collect  fees and  charges  and  interest  and amortization payments on mortgage loans made by it adequate to carry out any agreement as to, or pledge of, such fees  and  charges  and  interest  and  amortization  payments  on  such mortgages,  and  other properties and to require the agency to carry out any other agreements with the holders of such  notes  or  bonds  and  to perform its duties under this title;  (b) bring suit upon such notes or bonds;  (c)  by  action or special proceeding require the agency to account as if it were the trustee of an express trust for the holders of such notes or bonds;  (d) by action or special proceeding enjoin any acts  or  things  which may  be  unlawful  or  in violation of the rights of the holders of such notes or bonds;  (e) declare all such notes or  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  notes  or  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 or  noteholders  in  the  enforcement  and protection of their rights.   4.  The  supreme  court shall have jurisdiction of any suit, action or proceeding by the trustee on behalf of such noteholders or  bondholders. The  venue  of  any such suit, action or proceeding shall be laid in the county of Albany.   5. Before declaring due and payable the principal of  notes  or  bonds issued  in  connection  with any mortgage or other obligation securing a mortgage loan made by the agency, the trustee shall  first  give  thirty days'  notice  in  writing  to  the  governor,  to  the  agency,  to the commissioner of housing and community renewal, the state commissioner of health,  the  state  commissioner  of  mental  hygiene  or   the   state commissioner of social services, as the case may be, and to the attorney general of the state.