§ 1040 — Remedies of bondholders

* § 1040. Remedies of bondholders. 1. If, and to the extent, and in\nthe events, provided in the resolution authorizing the bonds, the\nholders of not less than twenty-five per centum in the aggregate\nprincipal amount of bonds at any time outstanding, may 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,\nappoint a trustee to represent all the bondholders for the purposes\nhereafter provided, which trustee or successor trustee may, however, be\nremoved or a new trustee appointed at any time by the holders of not\nless than fifty-one per centum of such bonds by similar instrument or\ninstruments so filed, and so proved or acknowledged. Subject to such\nauthorizing resolution, such trustee may, and upon written request of\nthe holders of not less than twenty-five per centum in principal amount\nof the bonds then outstanding shall, in his or its name:\n (a) by suit, action or special proceeding enforce all rights of the\nbondholders, including the right to require the authority and the\nmembers or officers thereof to collect rates and other revenue adequate\nto carry out any agreements as to, or pledge of, such rates and revenue,\nand to require the authority and members or officers thereof to carry\nout any other agreements with the bondholders and to perform its and\ntheir duties under this title;\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) after thirty days' notice in writing to the authority and if, and\nin the events, specified in the resolution, declare all bonds due and\npayable, and thereafter if, and in the events, specified in the\nresolution, annul such declaration and its consequences.\n 2. The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of the bondholders and the venue\nthereof shall be laid in Albany county.\n 3. Subject to the authorizing resolution, any such trustee, whether or\nnot all bonds have been declared due and payable, shall be entitled as\nof right to the appointment of a receiver who may enter and take\npossession of the properties of the authority or any part or parts\nthereof and operate and maintain the same and collect and receive all\nrates, charges and other revenues thereafter arising therefrom and\nexercise such other powers of the authority as the court may deem\nadvisable in the same manner as the authority itself might do and shall\ndeposit all such moneys in a separate account and apply the same in such\nmanner as the court shall direct. In any suit, action or proceeding by\nthe trustee the fees, counsel fees and expenses of the trustee and of\nthe receiver, if any, shall constitute taxable disbursements and all\ncosts and disbursements allowed by the court shall be a first charge on\nany rates, charges and other revenues derived from such properties.\n * NB Terminated July 1, 1963\n