§ 1439 — Remedies of bondholders

New York § 1439

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 2: White Plains Parking Authority
• Art. 7: Parking Authorities

Text

§ 1439. 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 county of Westchester 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 purposes herein\nprovided.\n 2. Such trustee may, and upon written request of the holders of\ntwenty-five per centum in principal amount of such bonds then\noutstanding shall, in his or its own name\n (a) by suit, action or special proceeding enforce all rights of the\nbondholders, including the right to require the authority to collect\nrevenues adequate to carry out by any agreement as to, or pledge of,\nsuch revenues, and to require the authority to carry out any other\nagreements with the holders of such bonds and to perform its duties\nunder this title;\n (b) bring suit upon such 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 holders of such\nbonds;\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 holders of such bonds;\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, 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 bondholders. The venue of any\nsuch suit, action or proceeding shall be laid in the county of\nWestchester.\n 4. Before declaring the principal of all such bonds due and payable,\nthe trustee shall first give thirty days' notice in writing to the\nauthority.\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\nproject the revenues of which are pledged for the security of the bonds\nof such issue, and such receiver may enter and take possession of such\npart or parts of the project and, subject to any pledge or agreement\nwith bondholders, shall take possession of all revenues or other moneys\nand other property derived from or applicable to the construction,\noperation and maintenance of such part or parts of the project and\nproceed with the acquisition of any real property necessary or\nconvenient in connection with the project that the authority has\ncovenanted to construct, and with any construction which the authority\nis under obligation to do and to operate and maintain such part or parts\nof the project and collect and receive all revenues thereafter arising\ntherefrom subject to any pledge thereof or agreement with bondholders\nrelating thereto and perform the public duties and carry out the\nagreements and obligations of the authority under the direction of the\ncourt. In any suit, action or proceeding by the trustee, the fee,\ncounsel fees and expenses of the trustee and of the receiver, if any,\nshall constitute taxable disbursements and all costs and disbursements\nallowed by the court shall be a first charge on any revenues derived\nfrom such project.\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 bondholders in the enforcement and protection of their\nrights.\n