2023 New York Laws › GMU - General Municipal › Article 18-A - Industrial Development › Title 1 - Agencies, Organization and Powers › 878 - Remedies of Bondholders and Noteholders.

§  878. Remedies of bondholders and noteholders. (1) In the event that
the agency shall default in the payment of principal or of  interest  on
any issue of the bonds or notes 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 the bonds or
notes, 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 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 or notes, then
outstanding shall, in his or its own name:
(a) by suit, action or special proceeding enforce all  rights  of  the
bondholders or noteholders, including the right to require the agency to
collect  revenues  adequate  to carry out any agreement as to, or pledge
of, such revenues, and to require the agency  to  carry  out  any  other
agreements  with  the  holders of such bonds or notes and to perform its
duties under this title;
(b) bring suit upon such bonds or notes;
(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 or notes;
(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 or notes;
(e) declare all such bonds or  notes  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  or  notes
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 bondholders or noteholders.   The
venue of any such suit, action or proceeding shall be laid in the county
in which the project or projects are located.
(4)  Before declaring the principal of all such bonds due and payable,
the trustee shall first give thirty  days'  notice  in  writing  to  the
agency.
(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  a
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 or noteholders, 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  agency  has
covenanted  to  construct, and with any construction which 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 or noteholders 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 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  or  noteholders  in the enforcement and
protection of their rights.