§ 40A:67-14 — Bond resolution, holders of series, entitled to benefits, event of default, appointing a representing trustee.

14. a. If the bond resolution of an authority authorizing or providing for the issuance of a series of its bonds provides that the bond holders of the series are entitled to the benefits of this section, then, in the event that there is a default in the payment of the principal of, or interest on, any bonds of the series after the bonds become due, whether at maturity or upon call for redemption, and the default shall continue for a period of 30 days, or in the event that the authority fails or refuses to comply with the provisions of P.L.2023, c.346 (C.40A:67-1 et seq.) or fails or refuses to carry out and perform the terms of any contract with the holders of those bonds, and that failure or refusal shall continue for a period of 30 days after written notice to the authority of its existence and nature, the holders of 25 percent in aggregate principal amount of the bonds and the series then outstanding by instrument or instruments filed in the office of the Secretary of State and proved or acknowledged in the same manner as a deed to be recorded, the bond holders may appoint a trustee to represent the bond holders of the series for the purposes provided in this section. b. The trustee, appointed pursuant to subsection a. of this section, may and upon written request of the holders of 25 percent in aggregate principal amount of the bonds of the series then outstanding shall, in the trustee's or its own name: (1) by any action, writ, proceeding in lieu of prerogative writ, or other proceeding, enforce all rights of the holders of the bonds, including to require an authority to carry out and perform the terms of a contract with the holders of the bonds or its duties pursuant to P.L.2023, c.346 (C.40A:67-1 et seq.); (2) bring an action upon all or any part of the bonds or appurtenant interest coupons or claims; (3) by action, require authority to account as if it were the trustee of an express trust for the holders of the bonds; (4) by action, enjoin any acts that may be unlawful or in violation of the rights of the holders of the bonds; and (5) declare all the bonds due and payable, whether or not in advance of maturity, upon 30 days' prior notice in writing to the authority and, if all defaults shall be made good, then with the consent of the holders of 25 percent of the principal amount of the bonds then outstanding, annul the declaration and its consequences. c. The trustee shall, in addition to the powers provided in subsections a. and b. of this section, possess all of the powers necessary for the exercise of the functions specifically set forth herein or incident to the general representation of the holders of bonds of the series in the enforcement and protection of their rights. d. In any action or proceeding by the trustee, the fees, counsel fees and expenses of the trustee and of the receiver, if any, appointed pursuant to P.L.2023, c.346 (C.40A:67-1 et seq.), shall constitute taxable costs and disbursements, and all costs and disbursements, allowed by the court, shall be a first charge upon any service charges and system revenues of the authority pledged for the payment or security of bonds of the series. L.2023, c.346, s.14.