2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 8-G - Cayuga County Water and Sewer Authority › 1199-IIII - Remedies of Bondholders.

* §  1199-iiii.  Remedies of bondholders. Subject to any resolution or
resolutions adopted pursuant to paragraph (j)  of  subdivision  four  of
section one thousand one hundred ninety-nine-hhhh of this title:
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
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  outstanding
shall, in 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, fees 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 and 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, 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  incidental  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.  Venue  of  any
such action or proceeding shall be laid in the county.
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 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.
6.  Before  declaring  the  principal  of  bonds  due and payable, the
trustee  shall  first  give  thirty  days'  notice  in  writing  to  the
authority.
* NB There are 2 § 1199-iiii's