§ 1599-PPP — Remedies of bondholders

New York § 1599-PPP

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 16: Village of Mount Kisco Parking Authority
• Art. 7: Parking Authorities

Text

* § 1599-ppp. Remedies of bondholders. (a) In the event that the\nauthority shall default in the payment of principal of or interest on\nany issue of the bonds after the same 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 any issue of the\nbonds, the holders of twenty-five per centum in aggregate principal\namount of the bonds of such issue then outstanding, by instrument or\ninstruments filed in the office of the clerk of the county of\nWestchester and proved or acknowledged in the same manner as a deed to\nbe recorded, may appoint a trustee to represent the holders of such\nbonds for the purposes herein provided.\n (b) 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 (1) by suit, action or special proceedings 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 (2) bring suit upon such bonds;\n (3) 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 (4) 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 (5) 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 (c) 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 (d) 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 (e) 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 (f) 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 * NB Authority ceased to exist 06/01/1976\n * NB There are 2 § 1599-ppp's\n