2023 New York Laws › PBA - Public Authorities › Article 2 - Park, Parkway and Highway Authorities › Title 3 - Jones Beach State Parkway Authority › 162 - Remedies of Bondholders.

*  §  162. 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 such issue
then outstanding by instrument or instruments filed in the office of the
clerk of the county of Nassau or of Suffolk 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 such issue of bonds then
outstanding shall upon being  furnished  security  satisfactory  to  the
trustee  for  the  recovery  of  his or its expense and against loss and
liability 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 revenues adequate to carry out any agreement as to, or pledge
of, such revenues and to require the authority and the  board  to  carry
out  any  other  agreements  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  of  such  issue 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 issue 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 the bondholders. The venue of any
such  suit,  action  or  proceeding  shall  be  laid in Nassau county or
Suffolk county.
4. 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  said
part or parts of the project and subject to any pledge or agreement with
bondholders  shall  take  possession  of  all  moneys and other property
derived from or applicable to the construction,  operation,  maintenance
and reconstruction of said part or parts of the project and proceed with
any  construction  thereon which the authority is under obligation to do
and to operate, maintain and reconstruct the said 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.
5. 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.
6.  All  bonds issued pursuant to the same resolution, although issued
at different times and with different terms and provisions and  although
supplemental  resolutions  may be required prior to the issuance of part
of such bonds, shall constitute one  issue  for  the  purposes  of  this
section,  but  any resolution may provide that the bonds issued pursuant
thereto shall constitute one or more separate issues for the purposes of
this section.
* NB (Authority abolished June 30, 1978)