§ 162 — Remedies of bondholders

New York § 162

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 3: Jones Beach State Parkway Authority
• Art. 2: Park, Parkway and Highway Authorities

Text

* § 162. 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 such issue\nthen outstanding by instrument or instruments filed in the office of the\nclerk of the county of Nassau or of Suffolk and proved or acknowledged\nin the same manner as a deed to be recorded may appoint a trustee, to\nrepresent the bondholders 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 issue of bonds then\noutstanding shall upon being furnished security satisfactory to the\ntrustee for the recovery of his or its expense and against loss and\nliability 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 and the board\nto collect revenues adequate to carry out any agreement as to, or pledge\nof, such revenues and to require the authority and the board to carry\nout any other agreements with the bondholders and to perform its and\ntheir duties under this title;\n (b) bring suit upon the 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 bondholders;\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 bondholders; (e)\ndeclare all bonds of such issue due and payable and if all defaults\nshall be made good, then with the consent of the holders of twenty-five\nper centum of the principal amount of such issue then outstanding, to\nannul such declaration and its consequences.\n 3. The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of the bondholders. The venue of any\nsuch suit, action or proceeding shall be laid in Nassau county or\nSuffolk county.\n 4. 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 said\npart or parts of the project and subject to any pledge or agreement with\nbondholders shall take possession of all moneys and other property\nderived from or applicable to the construction, operation, maintenance\nand reconstruction of said part or parts of the project and proceed with\nany construction thereon which the authority is under obligation to do\nand to operate, maintain and reconstruct the said part or parts of the\nproject 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 fees,\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.\n 5. 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 the bondholders in the enforcement and protection of\ntheir rights.\n 6. All bonds issued pursuant to the same resolution, although issued\nat different times and with different terms and provisions and although\nsupplemental resolutions may be required prior to the issuance of part\nof such bonds, shall constitute one issue for the purposes of this\nsection, but any resolution may provide that the bonds issued pursuant\nthereto shall constitute one or more separate issues for the purposes of\nthis section.\n * NB (Authority abolished June 30, 1978)\n