NY Pub Auth L § 1168 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 7 - Onondaga County Water Authority 1168 - Remedies of Bondholders.

§  1168.  Remedies  of bondholders. 1. In the event that the authority shall default in the payment of principal of or interest on any issue of the 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 the bonds,  the  holders of  twenty-five per centum 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 of Onondaga 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 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  then outstanding shall, in his or its own name  (a) by suit, action or special proceeding enforce all  rights  of  the bondholders,  including  the  rights to require the authority to collect revenues, rates, rentals, fees and other charges adequate to  carry  out any  agreement  as  to, or pledge of such revenues, rates, rentals, fees and other charges and to require the authority to carry  out  any  other agreements  with  the  holders  of  such bonds and to perform its duties under this title;  (b) bring suit upon such 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 holders of such bonds;  (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;  (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  per centum  of the principal amount of such bonds 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.   4.  Before  declaring  the principal of all such bonds due and payable the trustee shall first give thirty  days'  notice  in  writing  to  the authority.   5.  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 such receiver may enter and take possession of such part or parts of the  properties  and  subject  to  any  pledge  or agreement  with  bonders  shall  take possession of all moneys and other property derived from such part or parts of the 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.    6.  Such  trustees 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.