2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 11-A - Niagara Frontier Transportation Authority › 1299-M - Remedies of Noteholders and Bondholders.

§  1299-m.  Remedies  of  noteholders and bondholders. 1. In the event
that the authority shall default in  the  payment  of  principal  of  or
interest on any issue of notes or 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
notes or bonds, the holders  of  twenty-five  per  centum  in  aggregate
principal  amount  of the notes or bonds of such issue than outstanding,
by instrument or instruments filed in the office of  the  clerk  of  any
county  in  which the authority operates and has an office and proved or
acknowledged in the same manner as a deed to be recorded, may appoint  a
trustee to represent the holders of such notes or 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 notes or  bonds  then
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  noteholders  or
bondholders,  including  the  right  to require the authority to collect
fares, tolls, rentals, rates, charges and other fees adequate  to  carry
out  any  agreement  as  to,  or  pledge of, such fares, tolls, rentals,
rates, charges and other fees and to require the authority to carry  out
any  other  agreements  with  the  holders of such notes or bonds and to
perform its duties under this title;
(b) bring suit upon such notes or bonds;
(c) by action or suit, require the authority to account as if it  were
the trustee of an express trust for the holders of such notes or bonds;
(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 notes or bonds;
(e)  declare  all  such  notes  or  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 notes or 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  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 noteholders or bondholders.
The venue of any such suit, action or proceeding shall be  laid  in  the
county  in  which  the instrument or instruments are filed in accordance
with subdivision one of this section.
5. Before declaring the principal of notes or bonds due  and  payable,
the  trustee  shall  first  give  thirty  days' notice in writing to the
governor, to the authority, to  the  comptroller  and  to  the  attorney
general of the state.