§ 2676-I — Remedies of bondholders

New York § 2676-I

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 28-C: Albany County Pine Hills Land Authority
• Art. 8: Miscellaneous Authorities

Text

§ 2676-i. Remedies of bondholders. Subject to any resolution or\nresolutions adopted pursuant to this title:\n 1. In the event that the authority 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 authority 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 per centum 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\nin which the principal office of the authority is located 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 provided\nunder this section.\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 such trustee's 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, fees, and charges\nadequate to carry out any agreement as to, or pledge of, such rents,\nrates, fees, and charges and to require the authority to carry out any\nother agreements with the holders of such bonds to perform its duties\nunder 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 the twenty-five\nper centum of the principal amount of such bonds then outstanding, to\nannul such declaration and its consequences.\n 3. Such trustee shall in addition to the provisions of subdivisions\none and two of this section, have and possess all of the powers\nnecessary or appropriate for the exercise of any functions specifically\nset forth under this section or incident to the general representation\nof bond holders in the enforcement and protection of their rights.\n 4. The supreme court shall have jurisdiction of any action or\nproceeding by the trustee on behalf of such bond holders. 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 trustee\nshall first give thirty days notice in writing to the authority.\n 6. (a) Any such trustee, whether or not the issue of bonds represented\nby such trustee has been declared due and payable, shall be entitled as\nof right to the appointment of any receiver of any part or parts of the\nproject, the revenues of which are pledged for the security of bonds of\nsuch issue, and such receiver may enter and take possession of such part\nor parts of the project and, subject to any pledge or agreement with the\nholders of such bonds, shall take possession of all monies 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 authority is under obligation\nto do, and operate, maintain, and reconstruct such part or parts of the\nproject and collect and receive all revenues thereafter arising there\nfrom subject to any pledge or agreement with bond holders relating\nthereto and perform the public duties and carry out the agreements and\nobligations of the authority under the direction of the court.\n (b) In any suit, action or proceeding by the trustee, the fees,\ncouncil 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