2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 12 › 1983 - Remedies of Bondholders.

§  1983.  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 Register of the city of New York in the county of New York
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  mandamus  or  other  suit,  action or proceeding at law or in
equity enforce all rights of the bondholders,  including  the  right  to
require  the  authority  to  collect  revenues, rates, rentals, fees and
other charges adequate to carry out any agreement as to,  or  pledge  of
such revenues, rates, rentals, fees and other 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 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.
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 be 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  such  project,  and,  subject to any pledge or agreement with
bondholders, shall take possession of  all  moneys  and  other  property
derived  from  such  part  or parts of such 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.
6. Such trustees 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.