2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 13-F - Town of North Hempstead Solid Waste Management Authority › 2049-I - Remedies of Bondholders.

§  2049-i.  Remedies  of  bondholders.  Subject  to  any resolution or
resolutions adopted pursuant to paragraph (j) of  subdivision  three  of
section two thousand forty-nine-h of this title:
1.  In  the  event  that the authority shall default in the payment of
principal of or 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
of  Nassau 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 per centum in principal amount of  such  bonds  outstanding,
shall in his 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 collect rents, rates 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 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  incident to the general
representation of bondholders in the enforcement and protection of their
rights.
4. The  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 of Nassau.
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
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 holders of such bonds, shall take  possession  of  all  moneys  and
other  property  derived  from  such  part  or  parts of the project and
proceed  with  any  construction  thereon  or  the  acquisition  of  any
property,  real  or personal, in connection therewith that 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.