2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 13-AA - Montgomery, Otsego, Schoharie Solid Waste Management Authority › 2041-H - Remedies of Bondholders.

§  2041-h.  Remedies  of  bondholders.  Subject  to  any resolution or
resolutions  adopted  pursuant  to  subdivision  three  of  section  two
thousand forty-one-g of 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 clerk of the county
in  which the principal office of the authority is located 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 and charges adequate to
carry out any agreement as to, or  pledge  of,  such  rents,  rates  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 laid in the county where the
principal office of the authority is located.
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.