§ 3963 — Remedies of bondholders

New York § 3963

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 3: Erie County Fiscal Stability Authority
• Art. 10-D: Miscellaneous Authorities

Text

§ 3963. Remedies of bondholders. Subject to any resolution or\nresolutions adopted pursuant to paragraph (f) of subdivision six of\nsection thirty-nine hundred sixty-two of this title: 1. In the event\nthat the authority shall default in the payment of principal of or\ninterest on any issue of bonds, notes or other obligations after the\nsame shall become due, whether at maturity or upon call for redemption,\nand such default shall continue for a period of thirty days, or shall\ndefault in any agreement made with the holders of any issue of bonds,\nnotes, or other obligations, the holders of at least twenty-five per\ncentum in aggregate principal amount of the bonds, notes or other\nobligations of such issue then outstanding, by instrument or instruments\nfiled 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, notes or other\nobligations for the purpose provided in 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 holders of such bonds, notes or other\nobligations and require the authority to carry out any other agreements\nwith the holders of such bonds, notes or other obligations and to\nperform its duties under this title; (b) bring an action or proceeding\nupon such bonds, notes or other obligations; (c) by action or\nproceeding, require the authority to account as if it were the trustee\nof an express trust for the holder of such bonds, notes or other\nobligations; and (d) by action or proceeding, enjoin any acts or things\nwhich may be unlawful or in violation of the rights of the holders of\nsuch 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\nholders of bonds, notes or other obligations in the enforcement and\nprotection 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 holders of bonds,\nnotes or other obligations.\n