2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 6-D - Alfred, Almond, Hornellsville Sewer Authority › 1147-L - Remedies of Bondholders.

§  1147-l.  Remedies  of  bondholders.  Subject  to  any resolution or
resolutions adopted pursuant  to  subdivision  five  of  section  eleven
hundred forty-seven-k of 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 office of the clerk of the county
of  Allegany and proved or acknowledged in the same manner as 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, fees and charges adequate
to carry out any agreement as to, or pledge of, such rents, rates,  fees
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 any 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 state 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 of Allegany.
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 revenues derived from the properties.