§ 3863 — Remedies of bondholders

§ 3863. Remedies of bondholders. Subject to any resolution or\nresolutions adopted pursuant to paragraph (f) of subdivision six of\nsection thirty-eight hundred sixty-two 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, notes or other\nobligations after the same shall become due, whether at maturity or upon\ncall for redemption, and such default shall continue for a period of\nthirty days, or shall default in any agreement made with the holders of\nany issue of bonds, notes, or other obligations, the holders of at least\ntwenty-five per centum in aggregate principal amount of the bonds, notes\nor other obligations of such issue then outstanding, by instrument or\ninstruments filed in the office of the clerk of the county 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\nin this section.\n 2. Such trustee may, and upon written request of the holders of at\nleast twenty-five per centum in principal amount of such bonds, notes or\nother obligations outstanding shall, in his or her or its own name: (a)\nby action or proceeding in accordance with the civil practice law and\nrules, enforce all rights of the bondholders and require the authority\nto carry out any other agreements with the holders of such bonds, notes\nor other obligations and to perform its duties under this title; (b)\nbring an action or proceeding upon such bonds, notes or other\nobligations; (c) by action or proceeding, require the authority to\naccount as if it were the trustee of an express trust for the holder of\nsuch bonds, notes or other obligations; and (d) by action or proceeding,\nenjoin any acts or things which may be unlawful or in violation of the\nrights of the holders of such bonds, notes or other obligations.\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 of the county shall have jurisdiction of any\naction or proceeding by the trustee on behalf of such bondholders.\n