2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 13-C - Town of Islip Resource Recovery Agency › 2046-H - Remedies of Bondholders and Noteholders.

§   2046-h.  Remedies  of  bondholders  and  noteholders.  Subject  to
resolutions adopted pursuant to paragraph (j) of  subdivision  three  of
section two thousand forty-six-g of this title:
1.  In  the  event  that  the  agency  shall default in the payment of
principal of or 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 agency 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  cent  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 Suffolk 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 purpose herein provided.
2.  Such  trustee  may,  and  upon  written  request of the holders of
twenty-five per centum in aggregate principal amount of  such  bonds  or
notes outstanding, shall in his or its own name:
(a)  by  suit,  action  or  proceeding  in  accordance  with the civil
practice law and  rules,  enforce  all  rights  of  the  bondholders  or
noteholders,  including  the  right  to  require  the  agency to collect
rentals, rates, fees and charges adequate to carry out any agreement  as
to,  or  pledge  of  such  rentals, rates, charges and other fees and to
require the agency to carry out any other agreements with the holders of
such bonds or notes to perform its duties under this title;
(b) bring suit upon such bonds or notes;
(c) by action or suit, require the agency 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 in aggregate 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 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.
4.  The  supreme court shall have jurisdiction of any suit, action, or
proceeding by the trustee on behalf of such bondholders or  noteholders.
The  venue  of  any such suit, action or proceeding shall be laid in the
county of Suffolk.
5. Before declaring the principal of bonds or notes due  and  payable,
the  trustee  shall  first  give  thirty  days  notice in writing to the
governing body and president of the agency.
6. 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 or notes of such issue  and  such  receiver  may  enter  and  take
possession  of  such  part or parts of the properties and subject to any
pledge or agreement with holders of bonds or notes shall take possession
of all moneys and other property derived from such part or parts of  the
properties  and proceed with any construction thereon or the acquisition
of any property, real or personal  in  connection  therewith  which  the
agency  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 bond or note holders relating thereto and perform the
public duties and carry out the agreements and obligations of the agency
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.