2023 New York Laws › PBA - Public Authorities › Article 6 - Port Authorities › Title 2 - Port of Oswego Authority › 1365 - Remedies of Bondholders.

§  1365.  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 Oswego 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 herein provided.
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 his or its own name,
(a)  by  suit,  action or special proceeding 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 Oswego.
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  of  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  necessary  real  property   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  exercising  of  any
functions  specifically  set  forth  herein  or  incident to the general
representation of bondholders in the enforcement and protection of their
rights.