§ 59.21 — Remedies of bondholders

New York § 59.21

• Jurisdiction: New York
• Law ACA: Arts and Cultural Affairs
• Title V: American Museum of Natural History Planetarium Authority

Text

§ 59.21. Remedies of bondholders. 1. In the event that the Planetarium\nAuthority shall default in the payment of principal of or interest on\nany of the bonds after the same shall become due, whether at maturity or\nupon call for redemption, and such default shall continue for a period\nof thirty days, or in the event that the Planetarium Authority shall\nfail or refuse to comply with the provisions of this title, or shall\ndefault in any agreement made with the holders of the bonds, the holders\nof twenty-five percentum in aggregate principal amount of the bonds then\noutstanding by instrument or instruments filed in the office of the\nclerk of the county of New York and proved or acknowledged in the same\nmanner as a deed to be recorded may appoint a trustee to represent the\nbondholders for the purposes herein provided;\n 2. Such trustee may, and upon written request of the holders of\ntwenty-five percentum in the principal amount of the bonds then\noutstanding shall, in his or its own name:\n (a) By suit, action or special proceeding enforce all rights of the\nbondholders, including the right to require the Planetarium Authority\nand the board to collect admission fees adequate to carry out any\nagreement as to, or pledge of, such admission fees, and to require the\nPlanetarium Authority and the board to carry out any other agreements\nwith the bondholders and to perform its and their duties under this\ntitle;\n (b) Bring suit upon the bonds;\n (c) By action or suit in equity, require the authority to account as\nif it were the trustee of an express trust for the bondholders;\n (d) By action or suit in equity, enjoin any acts or things which may\nbe unlawful or in violation of the rights of the bondholders;\n (e) Declare all bonds due and payable, and if all defaults shall be\nmade good annul, upon the written consent of the holders of twenty-five\npercentum in principal amount of the bonds then outstanding, such\ndeclaration and its consequences.\n 3. The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of the bondholders. The venue of any\nsuch suit, action or proceeding shall be laid in New York county.\n 4. Before declaring the principal of all bonds due and payable the\ntrustee shall first give thirty days' notice in writing to the\nPlanetarium Authority.\n 5. Any such trustee, whether or not all bonds have been declared due\nand payable, shall be entitled as of right to the appointment of a\nreceiver who may enter and take possession of the planetarium or any\npart or parts thereof and operate and maintain the same and collect and\nreceive all admission fees and other revenues thereafter arising\ntherefrom in the same manner as the Planetarium Authority itself might\ndo and shall deposit all such moneys in a separate account and apply the\nsame in such manner as the court shall direct. In any suit, action or\nproceeding by the trustee the fees, counsel fees and expenses of the\ntrustee and of the receiver, if any, shall constitute taxable\ndisbursements and all costs and disbursements allowed by the court shall\nbe a first charge on any admission fees and other revenues derived from\nthe planetarium.\n 6. Such trustee shall in addition to the foregoing have and possess\nall of the powers necessary or appropriate for the exercise of any\nfunctions specifically set forth herein or incident to the general\nrepresentation of the bondholders in the enforcement and protection of\ntheir rights.\n