2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 27-A - Greater Rochester Sports Authority › 2583 - Remedies of Bondholders.

§  2583.  Remedies  of  bondholders.  Subject  to  any  resolution  or
resolutions adopted pursuant to 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 Monroe county clerk
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 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, fees
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, 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 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 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
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  the 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 operate, maintain and reconstruct such
part or parts of the  project  and  collect  and  receive  all  revenues
thereafter  arising  therefrom  subject  to any pledge 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.