NY Pub Auth L § 537 (2021)
2021 New York Laws PBA - Public Authorities Article 3 - Bridge and Tunnel Authorities Title 2 - New York State Bridge Authority 537 - Remedies of Bondholders.

§  537.  Remedies  of  bondholders. 1. In the event that the authority shall default in the payment of principal of or interest on any  of  the bonds as 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 the bonds, the holders of twenty-five per centum in aggregate principal amount of the bonds then outstanding, by  instrument or  instruments  filed  in  the  office  of  the  clerk of the county of Dutchess, Ulster, Greene or Columbia and proved or acknowledged  in  the same  manner  as  a  deed  to  be  recorded,  may  appoint a trustee, to represent the bondholders 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 the bonds then outstanding shall, in his or its own name  (a)  By  suit, action or special proceeding, enforce all rights of the bondholders, including the right to require the authority and the  board to  collect tolls and rentals adequate to carry out any agreement as to, or pledge of, such tolls and rentals, and to require the  authority  and the  board  to carry out any other agreement with the bondholders and to perform its and their duties under this title;  (b) Bring suit upon the 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 bondholders;  (d)  By  action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the bondholders;  (e) Declare all bonds due and payable and if all defaults  shall  have been  made  good, then upon written request of twenty-five per centum in principal amount  of  the  bonds  then  outstanding,  shall  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 the bondholders. The venue of any such suit, action or proceeding  shall  be  laid  in  Dutchess,  Ulster, Greene or Columbia county.   4.  Before  declaring  the  principal of all bonds due and payable the trustee shall first give notice in writing to the authority and  to  the attorney-general  of  the  state of New York and if, when such notice is given to the attorney-general the legislature shall be in  session,  the trustee  shall  not  declare  the  principal of the bonds due before the legislature adjourns sine die, or if the  legislature  be  not  then  in session  the  trustee  shall  not declare the principal of the bonds due until such an adjournment of  the  next  regular  session.  If  at  such session  the legislature shall take any action as a result of which past due principal and interest with interest on past due interest,  together with  the  fees,  counsel  fees  and  expenses of the trustee and of the receiver, if any, as fixed by the court, shall be paid within sixty days of its adjournment, default in the  payment  thereof  shall  thereby  be cured.   5. Any such trustee shall, whether or not all bonds have been declared due  and  payable,  be  entitled  as  of  right  to the appointment of a receiver who may enter and take possession of the bridges or any part or parts thereof and operate and maintain the same and collect and  receive all  tolls,  rentals  and other revenues thereafter arising therefrom in the same manner as the authority itself might do and shall  deposit  all such  moneys  in a separate account and apply the same in such manner as the court shall direct. In  any  suit,  action  or  proceedings  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 tolls, rentals and other revenues derived from the bridges.   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 the bondholders in the enforcement and  protection  of their rights.   7. Whenever the word "bonds" or the word "bondholders" shall have been used  in  this  section five hundred and thirty-seven said word shall be deemed to apply only to the bonds or the holders of  the  bonds  of  the particular  series  affected by the default or failure, and the remedies conferred by this section shall be available only to the holders of  the bonds  of  the  series,  and  shall  apply only to the bridge or bridges affected by such default or failure.