NY Pub Auth L § 1232-H (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 10-D - Nassau County Sewer and Storm Water Finance Authority 1232-H - Remedies of Bondholders.

§  1232-h.  Remedies  of  bondholders.  Subject  to  any resolution or resolutions adopted pursuant to paragraph (i)  of  subdivision  four  of section twelve hundred thirty-two-g of this title:   1.  In  the  event  that the authority shall default in the payment of principal or of 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 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 percent in principal amount of such bonds outstanding shall, in his, her or 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 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 percent of the principal amount of such bonds  then  outstanding,  annul such declaration and its consequences.   3. Such trustee shall, in addition to the foregoing provisions of this section, have and possess all of the powers necessary or appropriate for the  exercise of any functions specifically set forth in this section 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.   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.