2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 19 - New York State Sports Authority › 2475 - Remedies of Bondholders and Noteholders.

*  §  2475.  Remedies  of bondholders and noteholders. 1. In the event
that the authority shall default in  the  payment  of  principal  or  of
interest on any issue of 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 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 or notes, the holders  of  twenty-five  per  centum  in  aggregate
principal  amount  of the bonds or notes 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 or notes 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) enforce all rights of the bondholders  or  noteholders,  including
the  right  to  require  the authority to collect interest and principal
payments on the bonds held by it adequate to carry out any agreement  as
to,  or  pledge of, such interest and principal payments, and to require
the authority 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 suit, 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 suit, 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. Such trustee shall in addition to the foregoing  have  and  possess
all  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.  Before  declaring the principal of bonds or notes due and payable,
the trustee shall first give thirty  days'  notice  in  writing  to  the
governor, to the authority and to the attorney general of the state.
5.  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 principal office of the authority is located.
* NB (Disbanded March, 1980)