§ 1130 — Remedies of bondholders

New York § 1130

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 6-C: Town of Wilton Water and Sewer Authority
• Art. 5: Public Utility Authorities

Text

* § 1130. Remedies of bondholders. Subject to any resolution or\nresolutions adopted pursuant to paragraph (j) of subdivision four of\nsection one thousand one hundred twenty-nine of this title:\n 1. In the event that the authority shall default in the principal of\nor interest on any issue of bonds after the same shall become due,\nwhether at maturity or upon call for redemption, and such default shall\ncontinue for a period of thirty days, or in the event that the authority\nshall fail or refuse to comply with the provisions of this title or\nshall default in any agreement made with the holders of any issue of\nbonds, the holders of twenty-five percent in aggregate principal amount\nof the bonds of such issue then outstanding, by instrument or\ninstruments filed in the office of the clerk of the town and proved or\nacknowledged in the same manner as a deed to be recorded, may appoint a\ntrustee to represent the holders of such bonds for the purpose herein\nprovided.\n 2. Such trustee may and, upon written request of the holders of\ntwenty-five percent in principal amount of such bonds outstanding, shall\nin his, her 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, including the right to\nrequire the authority to collect rents, rates and charges adequate to\ncarry out any agreement as to, or pledge of, such rents, rates and\ncharges and to require the authority to carry out any other agreements\nwith the holders of such bonds 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\npercent 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 incident to the general\nrepresentation of bondholders in the enforcement and protection of their\nrights.\n 4. The supreme court shall have jurisdiction of any action or\nproceeding by the trustee on behalf of such bondholders. The venue of\nany such action or proceeding shall be laid in the county of Saratoga,\nNew York.\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 subject to any pledge or agreement with holders\nof such bonds, such receiver may enter and take possession of such part\nor parts of such properties and proceed with any construction thereon or\nthe acquisition of any property, real or personal, in connection\ntherewith which the authority is under obligation to do, and to operate,\nmaintain and reconstruct such part or parts of the properties and\ncollect and receive all revenues thereafter arising therefrom subject to\nany pledge thereof or agreement with bondholders relating thereto and\nperform the public duties and carry out the agreements and obligations\nof the authority under the direction of the court. In any suit, action\nor proceeding 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 * NB There are 2 § 1130's\n