§ 1114-H*2 — Remedies of bondholders

New York § 1114-H*2

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 5-A*2: North Shore Water Authority
• Art. 5: Public Utility Authorities

Text

* § 1114-h. 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 applicable county\nand proved or acknowledged in the same manner as a deed to be recorded,\nmay appoint 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 outstanding\nshall, in his or her 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 other agreements with the holders of such\nbonds and to 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, enjoin any acts or things which may be\nunlawful or in violation of the rights of the holders of such bonds; and\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. 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 incidental to the general\nrepresentation of bondholders in the enforcement and protection of their\nrights.\n 4. The state supreme court, county of Nassau and the state shall have\njurisdiction of any action or proceeding by the trustee on behalf of\nsuch bondholders.\n 5. Before declaring the principal of bonds due and payable, the\ntrustee shall first give thirty days' notice in writing to the\nauthority.\n * NB There are 2 § 1114-h's\n