2023 New York Laws › PBA - Public Authorities › Article 3 - Bridge and Tunnel Authorities › Title 2 - New York State Bridge Authority › 537 - Remedies of Bondholders.

§  537.  Remedies  of  bondholders. 1. In the event that the authority
shall default in the payment of principal of or interest on any  of  the
bonds as 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 the bonds, the holders of twenty-five per centum in
aggregate principal amount of the bonds then outstanding, by  instrument
or  instruments  filed  in  the  office  of  the  clerk of the county of
Dutchess, Ulster, Greene or Columbia and proved or acknowledged  in  the
same  manner  as  a  deed  to  be  recorded,  may  appoint a trustee, to
represent the bondholders 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 the bonds then outstanding
shall, in his or its own name
(a)  By  suit, action or special proceeding, enforce all rights of the
bondholders, including the right to require the authority and the  board
to  collect tolls and rentals adequate to carry out any agreement as to,
or pledge of, such tolls and rentals, and to require the  authority  and
the  board  to carry out any other agreement with the bondholders and to
perform its and their duties under this title;
(b) Bring suit upon the 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 bondholders;
(d)  By  action or suit in equity, enjoin any acts or things which may
be unlawful or in violation of the rights of the bondholders;
(e) Declare all bonds due and payable and if all defaults  shall  have
been  made  good, then upon written request of twenty-five per centum in
principal amount  of  the  bonds  then  outstanding,  shall  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 the bondholders. The venue of any
such suit, action or proceeding  shall  be  laid  in  Dutchess,  Ulster,
Greene or Columbia county.
4.  Before  declaring  the  principal of all bonds due and payable the
trustee shall first give notice in writing to the authority and  to  the
attorney-general  of  the  state of New York and if, when such notice is
given to the attorney-general the legislature shall be in  session,  the
trustee  shall  not  declare  the  principal of the bonds due before the
legislature adjourns sine die, or if the  legislature  be  not  then  in
session  the  trustee  shall  not declare the principal of the bonds due
until such an adjournment of  the  next  regular  session.  If  at  such
session  the legislature shall take any action as a result of which past
due principal and interest with interest on past due interest,  together
with  the  fees,  counsel  fees  and  expenses of the trustee and of the
receiver, if any, as fixed by the court, shall be paid within sixty days
of its adjournment, default in the  payment  thereof  shall  thereby  be
cured.
5. Any such trustee shall, whether or not all bonds have been declared
due  and  payable,  be  entitled  as  of  right  to the appointment of a
receiver who may enter and take possession of the bridges or any part or
parts thereof and operate and maintain the same and collect and  receive
all  tolls,  rentals  and other revenues thereafter arising therefrom in
the same manner as the authority itself might do and shall  deposit  all
such  moneys  in a separate account and apply the same in such manner as
the court shall direct. In  any  suit,  action  or  proceedings  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
tolls, rentals and other revenues derived from the bridges.
6.  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 the bondholders in the enforcement and  protection  of
their rights.
7. Whenever the word "bonds" or the word "bondholders" shall have been
used  in  this  section five hundred and thirty-seven said word shall be
deemed to apply only to the bonds or the holders of  the  bonds  of  the
particular  series  affected by the default or failure, and the remedies
conferred by this section shall be available only to the holders of  the
bonds  of  the  series,  and  shall  apply only to the bridge or bridges
affected by such default or failure.