This text of New York § 2799-OO (Remedies of bondholders) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§ 2799-oo. Remedies of bondholders. Subject to any resolution or\nresolutions adopted pursuant to paragraph (g) of subdivision six of\nsection twenty-seven hundred ninety-nine-gg of this title:\n 1. In the event that the authority shall default in the payment of\nprincipal of or 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 percent in aggregate\nprincipal amount of the bonds of such issue then outstanding, by\ninstrument or instruments filed in the offic
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§ 2799-oo. Remedies of bondholders. Subject to any resolution or\nresolutions adopted pursuant to paragraph (g) of subdivision six of\nsection twenty-seven hundred ninety-nine-gg of this title:\n 1. In the event that the authority shall default in the payment of\nprincipal of or 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 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 city\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 provided in 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 his or her 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 and require the\nauthority to carry out any other agreements with the holders of such\nbonds and 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, annul\nsuch 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 in this section or incident to the general representation of\nbondholders 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 bondholders. The venue of\nany such action or proceeding shall be laid in the county of New York.\n 5. Before declaring the principal of bonds due and payable, the\ntrustee shall first give thirty days' notice in writing to the\nauthority.\n