§ 2716 — Remedies of holders of bonds

§ 2716. Remedies of holders of bonds. 1. In the event that the\nauthority shall default in the payment of principal of or interest on\nany issue of bonds after the same shall become due, whether at maturity\nor upon call for redemption, and such default shall continue for a\nperiod of thirty days, or in the event that the authority shall fail or\nrefuse to comply with the provisions of this title, or shall default in\nany agreement made with the holders of any issue of bonds, the holders\nof twenty-five per centum in aggregate principal amount of the bonds of\nsuch issue then outstanding, by instrument or instruments filed in the\noffice of the clerk of the county in which the principal office of the\nauthority is located, and proved or acknowledged in the same manner as a\ndeed to be recorded, may appoint a trustee to represent the holders of\nsuch bonds for the 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 then\noutstanding shall, in his or its own name:\n (a) by suit, action or proceeding in accordance with the civil\npractice law and rules, enforce all rights of the holders of the\nauthority's bonds, including the right to require the authority to\ncollect fees and charges and interest adequate to carry out any\nagreement as to, or pledge or assignment of or lien upon, such fees and\ncharges and interest, on properties and to require the authority to\ncarry out any other agreements with the holders of such bonds and to\nperform its duties under this title;\n (b) bring suit upon such bonds;\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;\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;\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 the holders of the authority's bonds in the\nenforcement and protection of their rights.\n 4. The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of such holders of the authority's\nbonds. The venue of any such suit, action or proceeding shall be laid in\nthe county in which the principal office of the authority is located.\n