2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 7 - Onondaga County Water Authority › 1168 - Remedies of Bondholders.

§  1168.  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 clerk of the county of Onondaga 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 suit, action or special proceeding enforce all  rights  of  the
bondholders,  including  the  rights 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 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
properties 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  properties  and  subject  to  any  pledge  or
agreement  with  bonders  shall  take possession of all moneys and other
property derived from such part or parts of the properties  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 properties 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 properties.
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.