2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 6-B - Clifton Park Water Authority › 1120-I - Remedies of Bondholders.

§  1120-i.  Remedies  of  bondholders.  Subject  to  any resolution or
resolutions adopted pursuant to paragraph (j)  of  subdivision  four  of
section one thousand one hundred twenty-h of this title:
1.  In  the event that the authority shall default in the principal of
or interest on any issue of 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
bonds, the holders of twenty-five percent 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 town 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  purpose  herein
provided.
2.  Such  trustee  may  and,  upon  written  request of the holders of
twenty-five percent in principal amount of such bonds outstanding, shall
in his, her or its own name:
(a) by action or proceeding in accordance with the civil practice  law
and rules, enforce all rights of the bondholders, including the right to
require  the  authority  to collect rents, rates and charges adequate to
carry out any agreement as to, or  pledge  of,  such  rents,  rates  and
charges  and  to require the authority to carry out any other agreements
with the holders of such bonds to perform its duties under this title;
(b) bring an action or proceeding upon such bonds;
(c) by action or proceeding, 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 proceeding, enjoin any acts or things  which  may  be
unlawful or in violation of the rights of the holders of such bonds; and
(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
percent  of  the  principal amount of such bonds then outstanding, annul
such declaration and its consequences.
3. 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 in the enforcement and protection of their
rights.
4.  The  supreme  court  shall  have  jurisdiction  of  any  action or
proceeding by the trustee on behalf of such bondholders.  The  venue  of
any  such  action or proceeding shall be laid in the county of Saratoga,
New York.
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
properties  the  revenues  of  which are pledged for the security of the
bonds of such issue, and subject to any pledge or agreement with holders
of such bonds, such receiver may enter and take possession of such  part
or parts of such properties and proceed with any construction thereon or
the  acquisition  of  any  property,  real  or  personal,  in connection
therewith which the authority is under obligation to do, and to operate,
maintain and reconstruct such  part  or  parts  of  the  properties  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 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 revenues derived from the properties.