2023 New York Laws › PBA - Public Authorities › Article 3 - Bridge and Tunnel Authorities › Title 4 - Thousand Islands Bridge Authority › 586 - Remedies of Bondholders.

§  586.  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 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  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 Jefferson 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 right to require the authority and the  board
to  collect tolls and rentals adequate to carry out any agreement as to,
or pledge of, such tolls and rentals, 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 any default shall be made
good 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 proceedings shall be laid in Jefferson county.
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 bridges and road then
under the jurisdiction of the authority or any part or parts thereof and
operate and maintain the same and collect and receive all tolls, rentals
and other revenues thereafter arising from the American  channel  bridge
in  the  same  manner as the authority itself 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
tolls,  rentals  and  other  revenues  derived from the American channel
bridge.
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.