§ 707 — Remedies of bondholders

§ 707. 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 have 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 the bonds, the holders of twenty-five\nper centum in aggregate principal amount of the bonds then outstanding,\nby an instrument or instruments in writing filed in the office of the\nclerk of the county of Saint Lawrence and proved or acknowledged in the\nsame manner as a deed to be recorded, may appoint a trustee to represent\nthe holders of such bonds for 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 to collect\ntolls and revenues adequate to carry out any agreement as to, or pledge\nof, such tolls and revenues, and to require the authority to carry out\nany other agreements with the bondholders and to perform its duties\nunder 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 of the outstanding bonds due and payable, and if all\ndefaults shall be made good to annul such declaration and its\nconsequences.\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 proceeding shall be laid in the county of Saint\nLawrence.\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 bridge and any\napproach roads and the ferry or ferries then under the jurisdiction of\nthe authority or any part or parts thereof and operate and maintain the\nsame and collect and receive all tolls and other revenues thereafter\narising from the operation thereof in the same manner as the authority\nitself might do, and shall deposit all such moneys in a separate account\nand apply the same in such manner as the court shall direct. In any\nsuit, action or proceeding by the trustee the fees, counsel fees and\nexpenses of the trustee and of the receiver, if any, shall constitute\ntaxable disbursements and all costs and disbursements allowed by the\ncourt shall be a first charge on any tolls and other revenues derived\nfrom the operation of the bridge and the ferry or ferries.\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