NY Pub Auth L § 1965 (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 11 - Troy Industrial Development Authority 1965 - Remedies of Bondholders.

§  1965.  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  Rensselaer  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  right  to require the authority to collect revenues adequate to carry out any agreement as to, or pledge  of,  such revenues, 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 special 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 special proceeding, 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 bond-holders. The  venue  of  any such  suit,  action  or  proceeding  shall  be  laid  in  the  county of Rensselaer.   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 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 bondholders, shall take possession of all moneys and other property derived from or applicable to the acquisition, construction,  operation, maintenance  and reconstruction of such part or parts of the project and proceed  with  the  acquisition  of  any  necessary  real  property   in connection  with  the  project  that  the  authority  has  covenanted to construct, and with  any  construction  which  the  authority  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  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 fee,  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 such project.   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 bondholders in the enforcement and protection of their rights.