§ 2490-J — Remedies of bondholders

§ 2490-j. Remedies of bondholders. Subject to any resolution or\nresolutions adopted pursuant to paragraph (j) of subdivision three of\nsection twenty-four hundred ninety-i of this title. 1. In the event that\nthe authority shall default in the payment of principal of or interest\non any issue of 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 bonds,\nthe holders of twenty-five percent in aggregate principal amount of the\nbonds of such issue then outstanding, by instrument or instruments filed\nin the office of the clerk of the county of Saratoga and proved or\nacknowledged in the same manner as a deed to be recorded, may appoint a\ntrustee to represent the holders of such bonds for the purpose herein\nprovided.\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 authority to collect rents, rates and charges adequate to\ncarry out any agreement as to, or pledge of such rents, rates and\ncharges and to require the authority to carry out any other agreements\nwith the holders of 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 authority 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 of Saratoga.\n 5. Before declaring the principal of bonds due and payable, the\ntrustee shall first give thirty days notice in writing to the authority.\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 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 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 7. The 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