§ 836 — Remedies of bond holders

New York § 836

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 2: Central New York Regional Market Authority
• Art. 4: Market Authorities

Text

§ 836. Remedies of bond holders. 1. In the event that the authority\nshall default in the payment of the principal of or interest on any 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 the bonds, the holders of twenty-five\nper centum in aggregate principal amount of the bonds then outstanding,\nby instrument or instruments filed in the office of the clerk of the\ncounty of Onondaga and proved or acknowledged in the same manner as a\ndeed to be recorded, may appoint a trustee to represent the bond holders\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\nbond holders, including the right to require the authority and the board\nto collect rentals, license fees, and other revenues adequate to carry\nout any agreement as to, or pledge of, such rentals and to require the\nauthority and the board to carry out any other agreements with the bond\nholders and to perform 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 bond holders;\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 bond holders;\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 bond holders. The venue of\nany such suit, action or proceeding shall be laid in Onondaga 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 properties of the\nauthority then under the jurisdiction of the authority or any part or\nparts thereof and operate and maintain the same and collect and receive\nall rentals, license fees and other revenues thereafter arising\ntherefrom and exercise such other powers of the authority as the court\nmay deem advisable in the same manner as the authority itself might do\nand shall deposit all such moneys in a separate account or accounts and\napply the same in such manner as the court shall direct. In any suit,\naction, or proceeding by the trustee the fees, counsel fees and expenses\nof the trustee and of the receiver, if any, shall constitute taxable\ndisbursements and all costs and disbursements allowed by the court shall\nbe a first charge on any rentals and other revenues derived from the\nmarketing facilities.\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 bond holders in the enforcement and protection of\ntheir rights.\n