§ 1570-O — Remedies of bondholders

New York § 1570-O

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 8-A: Harrison Parking Authority
• Art. 7: Parking Authorities

Text

§ 1570-o. Remedies of bondholders. Subject to any resolution or\nresolutions adopted pursuant to this title:\n 1. In the event that the authority shall default in the payment of\nprincipal of or interest on any issue of bonds after the same shall\nbecome due, whether at maturity or upon call for redemption, and such\ndefault shall continue for a period of thirty days, or in the event that\nthe authority shall fail or refuse to comply with the provisions of this\ntitle, or shall default in any agreement made with the holders of any\nissue of the bonds, the holders of twenty-five per centum in aggregate\nprincipal amount of the bonds of such issue then outstanding, by\ninstrument or instruments filed in the office of the clerk of the county\nof Westchester and proved or acknowledged in the same manner as a deed\nto be recorded, may appoint a trustee to represent the holders of such\nbonds for the purposes provided in this section.\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 action or proceeding in accordance with the civil practice law\nand rules, enforce all rights of the bondholders, including the right to\nrequire the authority to collect revenues adequate to carry out by any\nagreement as to, or pledge of, such revenues, and to 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 suit 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, 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 moneys and other property\nderived from or applicable to the acquisition, construction, operation,\nmaintenance and reconstruction of such part or parts of the project and\nproceed with the acquisition of any necessary real property in\nconnection with the project that the authority has covenanted to\nconstruct, and with any construction which the authority is under\nobligation to do and to operate, maintain and reconstruct such part or\nparts of the project and collect and receive all revenues thereafter\narising therefrom subject to any pledge thereof or agreement with\nbondholders relating thereto and perform the public duties and carry out\nthe agreements and obligations of the authority under the direction of\nthe court. 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 powers specified in this\nsection, have and possess all of the powers necessary or appropriate for\nthe exercise of any functions specifically set forth in this section or\nincident to the general representation of bondholders in the enforcement\nand protection of their rights.\n