2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 12 - New York State Environmental Facilities Corporation › 1294 - Remedies of Noteholders and Bondholders.

§  1294. Remedies of noteholders and bondholders. 1. In the event that
the corporation shall default in the payment of principal of or interest
on any issue of notes or bonds after the same shall become due,  whether
on  any  sinking  fund  payment  date,  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 notes or bonds, the holders  of  twenty-five
per  centum  in aggregate principal amount of the notes or bonds of such
issue then outstanding, by instrument or instruments filed in the office
of the clerk of the county of Albany and proved or acknowledged  in  the
same manner as a deed to be recorded, may appoint a trustee to represent
the holders of such notes or 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 notes or  bonds  then
outstanding shall, in his or its own name;
(a)  by  suit,  action  or  proceeding  in  accordance  with the civil
practice law and  rules,  enforce  all  rights  of  the  noteholders  or
bondholders,  including  the right to require the corporation to collect
rentals, rates, charges and other  fees  and  to  collect  interest  and
amortization  payments  on municipal bonds and notes and bonds and notes
of any state agency held by it adequate to carry out  any  agreement  as
to,  or  pledge  of,  such rentals, rates, charges and other fees and of
such interest and amortization payments, and to require the  corporation
to  carry  out  any  other  agreements with the holders of such notes or
bonds and to perform its duties under this title;
(b) bring suit upon such notes or bonds;
(c) by action or suit, require the corporation to  account  as  if  it
were  the  trustee  of an express trust for the holders of such notes or
bonds;
(d) by action or suit, enjoin any acts or things which may be unlawful
or in violation of the rights of the holders of such notes or bonds;
(e) declare all such notes or  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  notes  or  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 or  noteholders  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 such noteholders or  bondholders.
The  venue  of  any such suit, action or proceeding shall be laid in the
county of Albany.
5. Before declaring the principal of notes or bonds due  and  payable,
the  trustee  shall  first  give  thirty  days' notice in writing to the
governor, to the corporation, to the comptroller  and  to  the  attorney
general of the state.