2023 New York Laws › PBA - Public Authorities › Article 4 - Market Authorities › Title 5 - Long Island Market Authority › 907 - Remedies of Bondholders.

§   907.  Remedies  of  bondholders.  Subject  to  any  resolution  or
resolutions adopted pursuant to this title:
1. In the event that the authority shall default  in  the  payment  of
principal  of  or  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 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  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
in which the principal office of the authority is located 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  provided
in this section.
2.  Such  trustee  may,  and  upon  written  request of the holders of
twenty-five per centum in principal amount  of  such  bonds  outstanding
shall, in 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 authority to collect rents, rates, fees and charges adequate
to carry out any agreement as to, or pledge of, such rents, rates,  fees
and  charges  and  to  require  the  authority  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 authority 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 the 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  in  this section 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 in the county of Suffolk.
5.  Before  declaring  the  principal  of  bonds  due and payable, the
trustee shall first give thirty days notice in writing to the authority.
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 any 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  the holders of such bonds, shall take possession of all monies 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  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  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.