NY Pub Auth L § 3561 (2021)
2021 New York Laws PBA - Public Authorities Article 10-C - New York Health Care Corporations Title 4 - Roswell Park Cancer Institute Corporation Act 3561 - Remedies of Bondholders.

§  3561.  Remedies  of  bondholders.  Subject  to  any  resolution  or resolutions adopted pursuant to this title:   1. In the event that the corporation 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  corporation  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 in  which  the principal office of the corporation is located 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 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 corporation  to  collect  rents,  rates,  fees  and  charges adequate  to  carry  out  any agreement as to, or pledge of, such rents, rates, fees and charges and to require the corporation 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 corporation 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 the twenty-five per centum of the principal amount of such 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 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 the bondholders. The venue of any such suit, action or proceeding shall be laid in Erie county.   5.  Before  declaring  the  principal  of  bonds  due and payable, the trustee  shall  first  give  thirty  days  notice  in  writing  to   the corporation.   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 any receiver of any part or parts of the project, 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 project and, subject to any pledge or agreement with the holders of such bonds, shall take possession of all moneys  and other  property  derived  from  such  part  or  parts of the project and proceed  with  any  construction  thereon  or  the  acquisition  of  any property, real or personal, in connection therewith that the corporation is under obligation to do, and to operate, maintain and reconstruct such part  or  parts  of  the  project  and  collect and receive all revenues thereafter arising therefrom subject to any  pledge  or  agreement  with  bondholders relating thereto and perform the public duties and carry out the agreements and obligations of the corporation 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.