§ 1818 — Pollution control bonds and notes

§ 1818. Pollution control bonds and notes. 1. The authority shall have\nthe power and is hereby authorized to issue at one time or in series\nfrom time to time (a) pollution control bonds in the aggregate principal\namount of not exceeding seventy-five million dollars, excluding\npollution control bonds issued to refund outstanding pollution control\nbonds, and (b) pollution control notes in anticipation of the issuance\nof such pollution control bonds.\n 2. The authority shall have power from time to time to renew pollution\ncontrol notes or to issue pollution control renewal notes for such\npurpose, to issue pollution control bonds to pay pollution control\nnotes, and whenever it deems refunding expedient, to refund any\npollution control bonds by the issuance of new pollution control bonds,\nwhether the bonds to be refunded have or have not matured, and may issue\npollution control bonds partly to refund pollution control bonds then\noutstanding and partly for the purposes specified in this subtitle. The\nbonds issued for refunding purposes shall be sold and the proceeds\napplied to the purchase, redemption or payment of the bonds to be\nrefunded.\n 3. The holders of pollution control bonds and notes shall have the\nfollowing rights and remedies, subject to the terms of the resolution\nauthorizing such bonds and notes or any trust indenture, secured loan\nagreement or other instrument related thereto.\n a. In the event that the authority shall default in the payment of\nprincipal of or interest on any issue of pollution control bonds or\nnotes after the same shall become due, whether at maturity or upon call\nfor redemption, and such default shall continue for a period of thirty\ndays, or in the event that the authority shall fail or refuse to comply\nwith the provisions of this title, or shall default in any contract made\nwith the holders of any issue of pollution control bonds or notes, the\nholders of twenty-five per cent in aggregate principal amount of the\nbonds or notes of such issue then outstanding, by instrument or\ninstruments filed in the office of the clerk in the county of Albany and\napproved or acknowledged in the same manner as a deed to be recorded,\nmay appoint a trustee to represent the holders of such bonds or notes\nfor the purposes herein provided.\n b. Such trustee may, and upon written request of the holders of\ntwenty-five per cent in principal amount of such bonds or notes then\noutstanding shall, in his or its own name:\n (i) by mandamus or other suit, action or proceeding at law or in\nequity enforce all rights of the pollution control bondholders or\nnoteholders, including any right to require the authority to collect\nrevenues adequate to carry out the provisions of any agreement with the\nholders of such bonds or notes and to perform its duties under this\ntitle;\n (ii) bring suit upon such bonds or notes;\n (iii) 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 bonds\nor notes;\n (iv) 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\nor notes;\n (v) subject to the provisions of subdivision four of section eighteen\nhundred five of this title, declare all such bonds or notes due and\npayable, and if all defaults shall be made good, then, with the consent\nof the holders of twenty-five per cent of the principal amount of such\nbonds or notes then outstanding, to annul such declaration and its\nconsequences.\n c. 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 pollution control bondholders or noteholders in\nthe enforcement and protection of their rights.\n d. The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of such bondholders or noteholders.\nThe venue of any such suit, action or proceeding shall be laid in the\ncounty of Albany.\n