§ 586 — Remedies of bondholders

New York § 586

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 4: Thousand Islands Bridge Authority
• Art. 3: Bridge and Tunnel Authorities

Text

§ 586. Remedies of bondholders. 1. In the event that the authority\nshall default in the payment of principal of or interest on any of the\nbonds after the same shall become due, whether at maturity or upon call\nfor redemption, and such default shall continue for a period of thirty\ndays, or in the event that the authority shall fail or refuse to comply\nwith the provisions of this title, or shall default in any agreement\nmade with the holders of the bonds, the holders of twenty-five per\ncentum in aggregate principal amount of the bonds then outstanding by\ninstrument or instruments, filed in the office of the clerk of the\ncounty of Jefferson and proved or acknowledged in the same manner as a\ndeed to be recorded, may appoint a trustee to represent the bondholders\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 the bonds then outstanding\nshall, 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 bondholders and to\nperform its and their duties under this title;\n (b) bring suit upon the 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 bondholders;\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 bondholders;\n (e) declare all bonds due and payable and if any default shall be made\ngood to annul such declaration and its consequences.\n 3. The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of the bondholders. The venue of any\nsuch suit, action or proceedings shall be laid in Jefferson county.\n 4. Before declaring the principal of all bonds due and payable the\ntrustee shall first give thirty days' notice in writing to the\nauthority.\n 5. Any such trustee, whether or not all bonds have been declared due\nand payable, shall be entitled as of right to the appointment of a\nreceiver who may enter and take possession of the bridges and road then\nunder the jurisdiction of the authority or any part or parts thereof and\noperate and maintain the same and collect and receive all tolls, rentals\nand other revenues thereafter arising from the American channel bridge\nin the same manner as the authority itself might do and shall deposit\nall such moneys in a separate account and apply the same in such manner\nas the court shall direct. In any suit, action or proceeding by the\ntrustee the fees, counsel fees and expenses of the trustee and of the\nreceiver, if any, shall constitute taxable disbursements and all costs\nand disbursements allowed by the court shall be a first charge on any\ntolls, rentals and other revenues derived from the American channel\nbridge.\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 the bondholders in the enforcement and protection of\ntheir rights.\n