§ 130-F — Actions for accounting by minority groups; expenses thereof

New York § 130-F

• Jurisdiction: New York
• Law RPP: Real Property
• Art. 4-A: Trust Indentures and Interests Therein

Text

§ 130-f. Actions for accounting by minority groups; expenses thereof.\nIn any special proceeding or action brought by or on behalf of any\nminority bondholder or group of minority bondholders, or any person or\ngroup of persons not holding at least fifty-one per centum of the stock\nor bonds of the mortgage issue, but claiming an interest in the trust\nproperty, for a judicial accounting, the court may take into\nconsideration the information as to income and disbursements theretofore\nfurnished to bondholders, the merits and good faith of the proceeding or\naction, and whether the accounting will be of value to the bondholders,\nas well as the cost of such accounting, and the court may require that\nthe petitioner or plaintiff furnish a surety company bond to indemnify\nthe estate against the expenses of the accounting, including fees of the\nreferee to take the accounting, stenographic fees, and the expenses of\nthe trustee, and may direct that, if it should appear that the\naccounting result in any practical benefit to all the bondholders, the\ncourt should then, in its discretion, release the indemnity, and that if\nno such benefit accrue, the petitioner or plaintiff and his attorney\nshould receive no compensation, and the trust fund should be reimbursed\nfor the expenses saddled upon it by reason thereof.\n