2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 8 - Buffalo Sewer Authority › 1192 - Remedies of Bondholders.

§  1192.  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 after the said principal or interest 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 Erie 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 rights to require the authority and the board
to collect rates, rentals and other charges adequate to  carry  out  any
agreement  as  to,  or  pledge of, the revenues of the authority, and to
require the authority and the board to carry out  any  other  agreements
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  be
made  good,  then  with  the  consent  of the holders of twenty-five per
centum of the principal amount of the 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 the bondholders. The venue of any
such suit, action or proceeding shall be laid in the county of Erie.
4. Before declaring the principal of all bonds due  and  payable,  the
trustee  shall  first  give  thirty  days'  notice  in  writing  to  the
authority.
5. Any such trustee, whether or not all bonds have been  declared  due
and  payable,  shall  be  entitled  as  of right to the appointment of a
receiver who may enter and take possession  of  the  facilities  of  the
authority  or  any  part  or  parts thereof and operate and maintain the
same, and collect and receive all rentals and other revenues  thereafter
arising  therefrom  in  the  same  manner as the authority and the board
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 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 rentals and other revenues derived from the
facilities of the authority.
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.