2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 6 - Albany Municipal Water Finance Authority › 1115-O - Remedies of Bondholders.

§  1115-o.  Remedies  of  bondholders.  Subject  to  any resolution or
resolutions adopted pursuant to paragraph (i)  of  subdivision  four  of
section one thousand one hundred fifteen-n 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 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 city
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 his or its own name:
(a) by action or proceeding in accordance with the civil practice  law
and  rules,  enforce  all  rights  of  the  bondholders  and 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,  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 shall be laid in the county of Albany.
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 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.