2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 13-G - Ulster County Resource Recovery Agency › 2050-I - Remedies of Bondholders.

§  2050-i.  Remedies  of  bondholders.  Subject  to  any resolution or
resolutions adopted pursuant to paragraph (j) of  subdivision  three  of
section two thousand fifty-h of this title:
1.  In  the  event  that  the  agency  shall default in the payment of
principal or of 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 agency 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
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  holder  of
twenty-five  per  centum  in principal amount of such bonds outstanding,
shall in his or 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 agency to collect rents, rates and charges adequate to carry
out  any agreement as to, or pledge of such rents, rates and charges and
to require the agency 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 agency 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 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  action  or
proceeding  by  the  trustee on behalf of such bondholders. The venue of
any such action or proceeding shall be laid in the county.
5. Before declaring the  principal  of  bonds  due  and  payable,  the
trustee shall first give thirty days notice in writing to the agency.
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  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
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 agency 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 agency  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 project.