§ 2475 — Remedies of bondholders and noteholders

* § 2475. Remedies of bondholders and noteholders. 1. In the event\nthat the authority shall default in the payment of principal or of\ninterest on any issue of bonds or notes after the same shall become due,\nwhether at maturity or upon call for redemption, and such default shall\ncontinue for a period of thirty days, or in the event that the authority\nshall fail or refuse to comply with the provisions of this title, or\nshall default in any agreement made with the holders of any issue of\nbonds or notes, the holders of twenty-five per centum in aggregate\nprincipal amount of the bonds or notes of such issue then outstanding,\nby instrument or instruments filed in the office of the clerk of the\ncounty in which the principal office of the authority is located, and\nproved or acknowledged in the same manner as a deed to be recorded, may\nappoint a trustee to represent the holders of such bonds or notes for\nthe 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 bonds or notes then\noutstanding shall, in his or its own name:\n (a) enforce all rights of the bondholders or noteholders, including\nthe right to require the authority to collect interest and principal\npayments on the bonds held by it adequate to carry out any agreement as\nto, or pledge of, such interest and principal payments, and to require\nthe authority to carry out any other agreements with the holders of such\nbonds or notes and to perform its duties under this title.\n (b) bring suit upon such bonds or notes.\n (c) by action or suit, require the authority to account as if it were\nthe trustee of an express trust for the holders of such bonds or notes.\n (d) by action or suit, enjoin any acts or things which may be unlawful\nor in violation of the rights of the holders of such bonds or notes.\n (e) declare all such bonds or notes due and payable and if all\ndefaults shall be made good then with the consent of the holders of\ntwenty-five per centum of the principal amount of such bonds or notes\nthen outstanding, to annul such declaration and its consequences.\n 3. Such trustee shall in addition to the foregoing have and possess\nall 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. Before declaring the principal of bonds or notes due and payable,\nthe trustee shall first give thirty days' notice in writing to the\ngovernor, to the authority and to the attorney general of the state.\n 5. The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of bondholders or noteholders. The\nvenue of any such suit, action, or proceeding shall be laid in the\ncounty in which the principal office of the authority is located.\n * NB (Disbanded March, 1980)\n