§ 567 — Remedies of bondholders

New York § 567

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 3: Triborough Bridge Authority
• Art. 3: Bridge and Tunnel Authorities

Text

§ 567. Remedies of bondholders. 1. In the event that the authority\nshall default in the payment of principal of or interest on any issue of\nthe bonds 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 in the event that the authority shall fail or refuse to\ncomply with the provisions of this title, or shall default in any\nagreement made with the holders of any issue of the bonds the holders of\ntwenty-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 of New York, or Queens or the Bronx or\nKings and proved or acknowledged in the same manner as a deed to be\nrecorded, may appoint a trustee to represent the holders of such bonds\nfor 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 special proceeding enforce all rights of the\nbondholders, including the right to require the authority and the board\nto collect tolls and rentals adequate to carry out any agreement as to,\nor pledge of, such tolls and rentals, and to require the authority and\nthe board to carry out any other agreements with the holders of such\nbonds and to perform its and their duties under this title;\n (b) bring suit upon such bonds;\n (c) by action or suit in equity, require the authority to account as\nif it were the trustee of an express trust for the holders of such\nbonds;\n (d) by action or suit in equity, enjoin any acts or things which may\nbe unlawful or 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. The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of bondholders. The venue of any\nsuch suit, action or proceeding shall be laid in the county of New York,\nQueens, the Bronx, or Kings.\n 4. Before declaring the principal of all such bonds due and payable\nthe trustee shall first give thirty days' notice in writing to the\nauthority.\n 5. Any such trustee whether or not the issue of bonds represented by\nsuch trustee has been declared due and payable, shall be entitled as of\nright to the appointment of a receiver of any part or parts of the\nproject the tolls or other revenues of which are pledged for the\nsecurity of the bonds of such issue and such receiver may enter and take\npossession of such part or parts of the project and subject to any\npledge or agreement with bondholders shall take possession of all moneys\nand other property derived from or applicable to the construction,\noperation, maintenance and reconstruction of such part or parts of the\nproject and proceed with any construction thereon which the authority is\nunder obligation to do and to operate, maintain and reconstruct such\npart or parts of the project and collect and receive all tolls and other\nrevenues thereafter arising therefrom subject to any pledge thereof or\nagreement with bondholders relating thereto and perform the public\nduties and carry out the agreements and obligations of the authority\nunder the direction of the court. In any suit, action or proceeding by\nthe trustee the fees, counsel fees and expenses of the trustee and of\nthe receiver, if any, shall constitute taxable disbursements and all\ncosts and disbursements allowed by the court shall be a first charge on\nany tolls, rentals and other revenues derived from such project.\n 6. 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 bondholders in the enforcement and protection of their\nrights.\n