§ 1299-OO — Remedies of noteholders and bondholders

§ 1299-oo. Remedies of noteholders and bondholders. 1. In the event\nthat the authority shall default in the payment of principal of or\ninterest on any issue of notes or 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\nnotes or bonds, the holders of twenty-five per centum in aggregate\nprincipal amount of the notes or bonds of such issue then outstanding,\nby instrument or instruments filed in the office of the clerk of any\ncounty in which the authority operates and has an office and proved or\nacknowledged in the same manner as a deed to be recorded, may appoint a\ntrustee to represent the holders of such notes or bonds for the purposes\nherein provided.\n 2. Such trustee may, and upon written request of the holders of\ntwenty-five per centum in principal amount of such notes or bonds then\noutstanding shall, in his or its own name:\n (a) by suit, action or proceeding in accordance with the civil\npractice law and rules, enforce all rights of the noteholders or\nbondholders, including the right to require the authority to collect\nfares, tolls, rentals, rates, charges and other fees adequate to carry\nout any agreement as to, or pledge of, such fares, tolls, rentals,\nrates, charges and other fees and to require the authority to carry out\nany other agreements with the holders of such notes or bonds and to\nperform its duties under this title;\n (b) bring suit upon such notes or bonds;\n (c) by action or suit, require the authority to account as if it were\nthe trustee of an express trust for the holders of such notes or bonds;\n (d) by action or suit, enjoin any acts or things which may be unlawful\nor in violation of the rights of the holders of such notes or bonds;\n (e) declare all such notes or bonds due and payable, and if all\ndefaults shall be made good, then, with the consent of the holders of\ntwenty-five per centum of the principal amount of such notes or bonds\nthen outstanding, to annul such 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 or noteholders in the enforcement and\nprotection of their rights.\n 4. The supreme court shall have jurisdiction of any suit, action or\nproceedings by the trustee on behalf of such noteholders or bondholders.\nThe venue of any such suit, action or proceeding shall be laid in the\ncounty in which the instrument or instruments are filed in accordance\nwith subdivision one of this section.\n 5. Before declaring the principal of notes or bonds due and payable,\nthe trustee shall first give thirty days' notice in writing to the\ngovernor, to the authority, to the comptroller and to the attorney\ngeneral of the state.\n