§ 2047-I — Remedies of bondholders

New York § 2047-I

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 13-D: Dutchess County Resource Recovery Agency
• Art. 8: Miscellaneous Authorities

Text

§ 2047-i. Remedies of bondholders. Subject to any resolution or\nresolutions adopted pursuant to paragraph (j) of subdivision three of\nsection two thousand forty-six-h of this title:\n 1. In the event that the agency shall default in the payment of\nprincipal or of 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 agency 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 bonds, the holders of twenty-five percent 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\nand proved or acknowledged in the same manner as a deed to be recorded,\nmay appoint a trustee to represent the holders of such bonds for the\npurpose 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 outstanding,\nshall 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 agency to collect rents, rates and charges adequate to carry\nout any agreement as to, or pledge of such rents, rates and charges and\nto require the agency to carry out any other agreements with the holders\nof such bonds to perform its duties under this title;\n (b) Bring an action or proceeding upon such bonds;\n (c) By action or proceeding, require the agency 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. 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 4. The supreme court shall have jurisdiction of any action or\nproceeding by the trustee on behalf of such bondholders. The venue of\nany such action or proceeding shall be laid in the county.\n 5. Before declaring the principal of bonds due and payable, the\ntrustee shall first give thirty days notice in writing to the agency.\n 6. 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 with\nholders of such bonds, shall take possession of all moneys and other\nproperty derived from such part or parts of the project and proceed with\nany construction thereon or the acquisition of any property, real or\npersonal, in connection therewith that the agency is under obligation to\ndo, and to operate, maintain and reconstruct such 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 agency 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 derived\nfrom the project.\n