2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 5 - Regional Off-Track Betting Corporations › 512 - Remedies of Holders of Bonds and Notes.

§  512. Remedies of holders of bonds and notes. 1. In the event that a
  corporation defaults in the payment of the principal of or  interest  on
  any  issue  of  bonds  or  notes  after the same becomes due, whether at
  maturity or upon call for redemption, and such default continues  for  a
  period of thirty days, or in the provisions of this article, or defaults
  in  any  agreement  made  with  the holders of any issue of the bonds or
  notes, the holders of twenty-five percent in aggregate principal  amount
  of  the  bonds or notes of such issue then outstanding, by instrument or
  instruments filed in the office of the clerk of any county in which  the
  corporation  operates and approved or acknowledged in the same manner as
  a deed to be recorded, may appoint a trustee to represent the holders of
  such bonds or notes for the purposes herein provided.
2. Such trustee may, and  upon  written  request  of  the  holders  of
  twenty-five  percent  in  principal  amount  of such bonds or notes then
  outstanding shall, in his, her or its own name:
a. by suit, action or special proceedings enforce all  rights  of  the
  holders  of  the  bonds  or  notes,  including  the right to require the
  corporation to carry out any agreements with such holders and to perform
  its duties under this title;
b. bring suit upon such bonds or notes;
c. by action or suit, require the corporation to account as if it were
  the trustee of an express trust for the holders of such bonds or notes;
d. by action or suit, enjoin any acts or things that may  be  unlawful
  or in violation of the rights of the holders of such bonds or notes; and
e.  declare  all  such  bonds  or  notes  due  and payable, and if all
  defaults shall be made good, then, with the consent of  the  holders  of
  twenty-five  percent of the principal amount of such bonds or notes then
  outstanding, annul such declaration and its consequences.
3. The supreme court shall have jurisdiction of any  suit,  action  or
  proceedings  by the trustee on behalf of such holders of bonds or notes.
  The venue of any such  suit,  action  or  proceeding  shall  be  in  the
  judicial  district  in  which the principal office of the corporation is
  located.
4. Before declaring the principal of bonds or notes due  and  payable,
  the  trustee  shall  first  give  thirty  days' notice in writing to the
  corporation, the governor, the comptroller and the attorney  general  of
  the state.
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 the revenues which are pledged
  for the security of the bonds of such issue, and such receiver may enter
  and  take  possession  of the premises, equipment and property which the
  corporation is operating or is entitled to use or occupy, and shall take
  possession of all revenues of the corporation and other moneys to  which
  the  corporation  is entitled, and shall proceed to conduct pari-mutuel,
  off-track betting pursuant to the provisions  of  this  article  in  the
  place  and  stead  of  the corporations from which otherwise, under such
  article, would constitute revenues of the corporation and shall  perform
  the  public  duties  and carry out the agreements and obligations of the
  corporation  under  the  direction  of  the  court.  In  any  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  allowed  by  the court and shall be a first charge on any
  revenues of the corporation.
6. Such trustee shall in addition to the foregoing  have  and  possess
  all the powers necessary or appropriate for the exercise of any function
  specifically  set forth herein or incident to the general representation

  of the holders of such bonds or notes in the enforcement and  protection
  of their rights.