2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 10-D - Nassau County Sewer and Storm Water Finance Authority › 1232-H - Remedies of Bondholders.

§  1232-h.  Remedies  of  bondholders.  Subject  to  any resolution or
resolutions adopted pursuant to paragraph (i)  of  subdivision  four  of
section twelve hundred thirty-two-g of this title:
1.  In  the  event  that the authority shall default in the payment of
principal or of 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
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 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 provisions of this
section, have and possess all of the powers necessary or appropriate for
the  exercise of any functions specifically set forth in this section or
incident to the general representation of bondholders in the enforcement
and protection of their rights.
4. The state 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.
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
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 the properties and shall take possession of all
moneys and other property derived  from  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.