2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 17 - State of New York Mortgage Agency Act › Part 1 › 2409 - Remedies of Bondholders and Noteholders.

§ 2409. Remedies of bondholders and noteholders. (1) In the event that
the  agency  shall default in the payment of principal or of interest on
any issue of bonds or notes 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 agency 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  or  notes,
the  holders  of twenty-five per centum in aggregate principal amount of
the bonds or notes 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 agency 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 or notes 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 bonds or notes then
outstanding shall, in his or its own name,
(a) enforce all rights of the bondholders  or  noteholders,  including
the  right  to  require  the agency to collect interest and amortization
payments on the mortgages held by it adequate to carry out any agreement
as to, or pledge of, such interest and  amortization  payments,  and  to
require the agency to carry out any other agreements with the holders of
such bonds or notes and to perform its duties under this title;
(b) bring suit upon such bonds or notes;
(c) by action or suit, require the agency to account as if it were the
trustee of an express trust for the holders of such bonds or notes;
(d) by action or suit, enjoin any acts or things which may be unlawful
or in violation of the rights of the holders of such bonds or notes;
(e)  declare  all  such  bonds  or  notes  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 or notes
then outstanding, to annul such declaration and its consequences.
(3) Such trustee shall in addition to the foregoing have  and  possess
all  the  powers  necessary  or  appropriate  for  the  exercise  of any
functions specifically set forth  herein  or  incident  to  the  general
representation  of  bondholders  or  noteholders  in the enforcement and
protection of their rights.
(4) Before declaring the principal of bonds or notes due and  payable,
the  trustee  shall  first  give  thirty  days' notice in writing to the
governor, to the agency and to the attorney general of the state.
(5) The supreme court shall have jurisdiction of any suit,  action  or
proceeding  by the trustee on behalf of bondholders or noteholders.  The
venue of any such suit, action, or  proceeding  shall  be  laid  in  the
county in which the principal office of the agency is located.