§ 1192 — Remedies of bondholders

§ 1192. Remedies of bondholders. 1. In the event that the authority\nshall default in the payment of principal of, or interest on, any of the\nbonds after the said principal or interest 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 the bonds, the holders\nof twenty-five per centum in aggregate principal amount of the bonds\nthen outstanding, by instrument or instruments filed in the office of\nthe clerk of the county of Erie and proved or acknowledged in the same\nmanner as a deed to be recorded, may appoint a trustee to represent the\nbondholders 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 the bonds then outstanding\nshall, in his or its own name:\n (a) by suit, action or special proceeding enforce all rights of the\nbondholders, including the rights to require the authority and the board\nto collect rates, rentals and other charges adequate to carry out any\nagreement as to, or pledge of, the revenues of the authority, and to\nrequire the authority and the board to carry out any other agreements\nwith the bondholders and to perform its and their duties under this\ntitle;\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) declare all bonds due and payable, and if all defaults shall be\nmade good, then with the consent of the holders of twenty-five per\ncentum of the principal amount of the bonds then outstanding, to annul\nsuch declaration and its consequences.\n 3. The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of the bondholders. The venue of any\nsuch suit, action or proceeding shall be laid in the county of Erie.\n 4. Before declaring the principal of all 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 all bonds have been declared due\nand payable, shall be entitled as of right to the appointment of a\nreceiver who may enter and take possession of the facilities of the\nauthority or any part or parts thereof and operate and maintain the\nsame, and collect and receive all rentals and other revenues thereafter\narising therefrom in the same manner as the authority and the board\nmight do and shall deposit all such moneys in a separate account and\napply the same in such manner as the court shall direct. In any suit,\naction or proceeding by the trustee, the fees, counsel fees and expenses\nof the trustee 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 rentals and other revenues derived from the\nfacilities of the authority.\n 6. 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 the bondholders in the enforcement and protection of\ntheir rights.\n