2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 9 - New York City Transit Authority › 1207-H - Remedies of Bondholders and Noteholders.

§  1207-h.  Remedies  of  bondholders and noteholders. 1. In the event
that the authority shall default in  the  payment  of  principal  of  or
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
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  of New York, or Queens or the Bronx or Kings 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) by a proceeding under article seventy-eight of the civil  practice
act  or other suit, action or proceeding at law or in equity enforce all
rights of the bondholders or noteholders, including the right to require
the authority and the board to collect fares and  revenues  adequate  to
carry  out  any  agreement as to, or pledge of, such fares and revenues,
and to require the authority and  the  board  to  carry  out  any  other
agreements  with  the  holders of such bonds or notes and to perform its
and their duties under this title;
(b) bring suit upon such bonds or notes;
(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
or notes;
(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
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
of New York, Queens, the Bronx, or Kings.
4. Before declaring the principal of all such bonds or notes  due  and
payable  the  trustee shall first give thirty days' notice in writing to
the authority and the city.
5. Any such trustee, whether or  not  the  issue  of  bonds  or  notes
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 fares or other revenues which are pledged for the security
of the bonds or notes of such issue, and such  receiver  may  enter  and
take  possession  of such part or parts of the transit facilities of the
authority 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  maintenance  and  operation  of  the
transit  facilities  operated by the authority and operate, maintain and
reconstruct such part or parts of said transit  facilities  and  collect
and  receive  all fares and other 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 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 fares and other
revenues derived from such transit facilities.
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.