§ 887 — Remedies of bondholders

§ 887. Remedies of bondholders. 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 Monroe and proved or acknowledged in the same manner as a deed\nto be recorded, may appoint a trustee to represent the bondholders for\nthe 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 rentals, and other charges adequate to carry out any\nagreement as to, or pledge of, such rentals, fees and other charges and\nto require the authority and the board to carry out any other agreements\nwith the bondholders and to perform its 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\nmade good, 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 Monroe 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 revenues thereafter arising therefrom and exercise such other powers\nof the authority as the court may deem advisable in the same manner as\nthe authority itself might do and shall deposit all such moneys in a\nseparate account or accounts and apply the same in such manner as the\ncourt shall direct. In any suit, action, or proceeding by the trustee\nthe fees, counsel fees and expenses of the trustee and of the receiver,\nif any, shall constitute taxable disbursements and all costs and\ndisbursements allowed by the court shall be a first charge on any\nrevenues derived from the marketing 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 bondholders in the enforcement and protection of\ntheir rights.\n