2023 New York Laws › PBA - Public Authorities › Article 7 - Parking Authorities › Title 21 - Middletown Parking Authority › 1621-P - Remedies of Bondholders.

* §  1621-p.  Remedies  of  bondholders.  1.  In  the  event  that the
authority shall default in the payment of principal of  or  interest  on
any  issue  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 any issue of the
bonds, 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 of Orange 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 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  then
outstanding shall, in the trustee's own name:
(a) by mandamus or other suit, action or  proceeding,  at  law  or  in
equity,  enforce  all  rights of the bondholders, including the right to
require the authority to collect revenues adequate to carry out  by  any
agreement  as  to,  or  pledge  of,  such  revenues,  and to require the
authority to carry out any other agreements with  the  holders  of  such
bonds and to perform its duties under this title;
(b) bring suit upon such 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  holders  of  such
bonds;
(d)  by  action or suit in equity, enjoin any acts or things which may
be unlawful or in violation of the rights of the holders of such bonds;
(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.  The  supreme  court shall have jurisdiction of any suit, action or
proceeding by the trustee on behalf of bondholders.  The  venue  of  any
such suit, action or proceeding shall be laid in the county of Orange.
4.  Before  declaring the principal of all such bonds due and payable,
the trustee shall first give thirty  days'  notice  in  writing  to  the
authority.
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 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 bondholders, 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  real  property  necessary  or
convenient in  connection  with  the  project  that  the  authority  has
covenanted  to  construct, and with any construction which 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 thereof 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 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  in  this section or incident to the
general representation of bondholders in the enforcement and  protection
of their rights.
* NB Repealed per § 1621-r (see chapter 597 of 2023 § 2 for specifics)