§ 17 — Remedies of holders of bonds and notes

New York § 17

• Jurisdiction: New York
• Law HHC: New York City health and hospitals corporation act 1016/69

Text

§ 17. Remedies of holders of bonds and notes. 1. In the event that the\ncorporation shall default in the payment of the principal of or interest\non any issue of bonds or notes after the same shall become due, whether\nat maturity or upon call for redemption, and such default shall continue\nfor a period of thirty days, or in the event that the corporation shall\nfail or refuse to comply with the provisions of this title, or shall\ndefault in any agreement made with the holders of any issue of the bonds\nor notes, the holders of twenty-five per centum in aggregate principal\namount of the bonds or notes of such issue then outstanding, by\ninstrument or instruments filed in the office of the city clerk of the\ncity and approved or acknowledged in the same manner as a deed to be\nrecorded, may appoint a trustee to represent the holders of such bonds\nor notes for the purposes herein provided.\n 2. Such trustee may, and upon written request of the holders of\ntwenty-five per centum in principal amount of such bonds or notes then\noutstanding shall, in his or its own name:\n (a) by suit, action or special proceedings enforce all rights of the\nholders of the bonds or notes, including the right to require the\ncorporation to carry out any agreements with such holders and to perform\nits duties under this title;\n (b) bring suit upon such bonds or notes;\n (c) by action or suit, require the corporation to account as if it\nwere the trustee of an express trust for the holders of such bonds or\nnotes;\n (d) by action or suit, enjoin any acts or things which may be unlawful\nor in violation of the rights of the holders of such bonds or notes;\n (e) declare all such bonds or notes due and payable, and if all\ndefaults shall be made good, then, with the consent of the holders of\ntwenty-five per centum of the principal amount of such bonds or notes\nthen outstanding, annul such declaration and its consequences.\n 3. The supreme court shall have jurisdiction of any suit, action or\nproceedings by the trustee on behalf of such holders of bonds or notes.\nThe venue of any such suit, action or proceeding shall be laid in the\ncounty of New York.\n 4. Before declaring the principal of bonds or notes due and payable,\nthe trustee shall first give thirty days' notice in writing to the\ncorporation.\n 5. Any such trustee, whether or not all bonds or notes have been\ndeclared due and payable, shall be entitled as of right to the\nappointment of a receiver who may enter and take possession of a health\nfacility or any part or parts thereof and maintain and repair the same\nand collect and receive all fees, rentals and charges or other revenues\nthereafter arising therefrom in the same manner as the corporation\nitself might do and shall deposit all such moneys in a separate account\nand apply the same in such manner as the court shall direct. In any\nsuit, action or proceeding by the trustee, the fees, including counsel\nfees, and expenses of the trustee and of the receiver, if any, shall\nconstitute taxable disbursements and all costs and disbursements allowed\nby the court shall be a first charge on any rentals, charges or other\nrevenues derived from a health facility.\n 6. Such trustee shall in addition to the foregoing have and possess\nall the powers necessary or appropriate for the exercise of any function\nspecifically set forth herein or incident to the general representation\nof the holders of such bonds or notes in the enforcement and protection\nof their rights.\n