§ 1020-I*2 — Remedies of bondholders

New York § 1020-I*2

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 1-A*: Green Island Power Authority
• Art. 5: Public Utility Authorities

Text

* § 1020-i. Remedies of bondholders. 1. In the event that the\nauthority shall default in the payment of principal of or interest on\nany issue of the bonds after the same shall become due, whether at\nmaturity or upon call for redemption, and such default shall continue\nfor a period of thirty days, or in the event that the authority 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\nbonds, the holders of twenty-five per centum in aggregate principal\namount of the bonds of such issue then outstanding, by instrument or\ninstruments filed in the office of the clerk of the county of Albany and\nproved or acknowledged in the same manner as a deed to be recorded, may\nappoint a trustee to represent the holders of such bonds for the\npurposes 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 then\noutstanding shall, in his or its own name:\n (a) by action or proceeding in accordance with the civil practice law\nand rules, enforce all rights of the bondholders and require the\nauthority to carry out any agreements with the holders of such bonds and\nto perform its duties under this title;\n (b) bring an action or proceeding upon such bonds;\n (c) by action or proceeding, require the authority to account as if it\nwere the trustee of an express trust for the holders of such bonds;\n (d) by action or proceeding in equity, enjoin any acts or things which\nmay be unlawful or in violation of the rights of the holders of such\nbonds;\n (e) declare all such bonds due and payable, and if all defaults shall\nbe made good then with the consent of the holders of twenty-five per\ncentum of the principal amount of such bonds then outstanding, annul\nsuch declaration and its consequences.\n 3. The supreme court shall have jurisdiction of any action or\nproceeding by the trustee on behalf of bondholders. The venue of any\nsuch action or proceeding shall be laid in the county of Albany.\n 4. Before declaring the principal of bonds due and payable, the\ntrustee shall first give thirty days' notice in writing to the\nauthority.\n 5. Any such trustee whether or not the issue of bonds represented by\nsuch trustee has been declared due and payable, shall be entitled as of\nright to the appointment of a receiver of any part or parts of the\nproperties the revenues of which are pledged for the security of the\nbonds of such issue and such receiver may enter and take possession of\nsuch part or parts of the properties and subject to any pledge or\nagreement with bondholders shall take possession of such part or parts\nof such properties and proceed with any construction thereon or the\nacquisition of any property, real or personal in connection therewith\nwhich the authority is under obligation to do, and to operate, maintain\nand reconstruct such part or parts of the properties and collect and\nreceive all revenues thereafter arising therefrom subject to any pledge\nthereof or agreement with bondholders relating thereto and perform the\npublic duties and carry out the agreements and obligations of the\nauthority under the direction of the court. 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 revenues derived from the properties.\n 6. Such trustees 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 bondholders in the enforcement and protection of their\nrights.\n * NB There are 2 § 1020-i's\n