2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 21 - Saratoga Springs City Center Authority › 2490-J - Remedies of Bondholders.

§  2490-j.  Remedies  of  bondholders.  Subject  to  any resolution or
resolutions adopted pursuant to paragraph (j) of  subdivision  three  of
section twenty-four hundred ninety-i of this title. 1. In the event that
the  authority  shall default in the payment of 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  county  of  Saratoga  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 per centum in principal amount of  such  bonds  outstanding,
shall in his 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 per
centum of the principal amount of such bonds 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 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.
5. Before declaring the  principal  of  bonds  due  and  payable,  the
trustee shall first give thirty days notice in writing to the authority.
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
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
holders of such bonds shall take possession  of  all  moneys  and  other
property derived from such part or parts of the project 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 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 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 project.
7. The 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.