2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 10-B - Niagara Falls Public Water Authority › 1230-N - Remedies of Bondholders.

§  1230-n.  Remedies  of  bondholders.  Subject  to  any resolution or
resolutions adopted pursuant to this title:
1. In the event that the authority shall default  in  the  payment  of
principal  of  or  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 offices of the clerk of the city,
secretary  of  the  water  board  and  the  authority  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 percent in principal amount of such bonds outstanding, shall
in his, her or 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 require the water board to collect fees, rates
and charges adequate to carry out any agreement as  to,  or  pledge  of,
such  fees,  rates and charges and to require the authority to carry out
any  other  agreements  with  the  water  board,  the  city  and/or  any
municipality  and/or  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
percent  of  the  principal amount of such bonds then outstanding, 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 Niagara county.
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
properties  the  revenues  of  which are pledged for the security of the
bonds of such issue, and,  subject  to  any  pledge  or  agreement  with
holders  of  such  bonds, such receiver may enter and take possession of
such part or parts of the properties and shall take  possession  of  all
moneys  and  other  property  derived  from  such  part or parts of such
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 revenue derived from the properties.