§ 1174-I — Remedies of bondholders

New York § 1174-I

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 7-A: Water Authority of Southeastern Nassau County
• Art. 5: Public Utility Authorities

Text

§ 1174-i. Remedies of bondholders. 1. In the event that the authority\nshall default in the payment of principal of or interest on any issue of\nthe bonds after the same shall become due, whether at maturity or upon\ncall for redemption, and such default shall continue for a period of\nthirty days, or in the event that the authority shall fail or refuse to\ncomply with the provisions of this title, or shall default in any\nagreement made with the holders of any issue of the bonds, the holders\nof twenty-five per centum in aggregate principal amount of the bonds of\nsuch issue then outstanding, by instrument or instruments filed in the\noffice of the clerk of the applicable county and proved or acknowledged\nin the same manner as a deed to be recorded, may appoint a trustee to\nrepresent the holders of such bonds 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 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 shall have jurisdiction of any action or\nproceeding by the trustee on behalf of such 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