§ 1500-P — Remedies of bondholders

New York § 1500-P

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 5: City of Buffalo Parking Authority
• Art. 7: Parking Authorities

Text

§ 1500-p. 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 Erie and proved or acknowledged in\nthe 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 then\noutstanding shall, in such trustee's own name:\n (a) by 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 special proceeding, require the authority to account\nas if it were the trustee of an express trust for the holders of such\nbonds;\n (d) by action or special proceeding, enjoin any acts or things which\nmay be unlawful or in violation of the rights of the holders of such\nbonds;\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 Erie.\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\ncovered project the revenues of which are pledged for the security of\nthe bonds of such issue, and such receiver may enter and take possession\nof such part or parts of the covered project and, subject to any pledge\nor agreement with bondholders, shall take possession of all moneys and\nother property derived from or applicable to the acquisition,\nconstruction, operation, maintenance and reconstruction of such part or\nparts of the covered project and proceed with the acquisition of any\nnecessary real property in connection with the covered project that the\nauthority has covenanted to construct, and with any construction which\nthe authority is under obligation to do and to operate, maintain and\nreconstruct such part or parts of the covered project and collect and\nreceive all revenues thereafter arising therefrom subject to any pledge\nthereof or agreement with bondholders relating thereto and perform the\npublic duties and carry out the agreements and obligations of the\nauthority under the direction of the court. In any suit, action or\nproceeding by the trustee, the fee, 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 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