§ 8 — Remedies of bondholders

§ 8. Remedies of bondholders. 1. Subject to the provisions of section\nsix of this act, in the event that the corporation shall default in the\npayment of principal of, or interest on, or sinking fund payment on, any\nissue of bonds after the same shall become due, whether at maturity or\nupon call for redemption, or in the event that the corporation or the\nstate shall default in any agreement made with the holders of any issue\nof bonds, the holders of twenty-five per centum in aggregate principal\namount of the bonds of such issue then outstanding, by instrument or\ninstruments filed in the office of the clerk of the county of Albany and\nproved or acknowledged in the same manner as a deed to be recorded, may\nappoint a trustee to represent the holders of such bonds for the\npurposes herein provided.\n 2. Such trustee, or any trustee appointed under this act, may, and\nupon written request of the holders of twenty-five per centum in\nprincipal amount of such bonds then outstanding shall, in his or its own\nname:\n (i) by suit, action or proceeding in accordance with the civil\npractice law and rules, enforce all rights of the bondholders, including\nthe right to require the corporation to carry out any agreement with\nsuch holders and to perform its duties under this act;\n (ii) bring suit upon such bonds;\n (iii) by action or suit, require the corporation to account as if it\nwere the trustee of an express trust for the holders of such bonds;\n (iv) by action or suit, enjoin any acts or things which may be\nunlawful or in violation of the rights of the holders of such bonds; and\n (v) declare all such bonds due and payable, and if all defaults shall\nbe made good, then, with the consent of the holders of twenty-five per\ncentum of the principal amount of such bonds then outstanding, annul\nsuch declaration and its consequences, provided, however, that nothing\nherein shall preclude the corporation from agreeing that consent of the\nprovider of an ancillary bond facility is required for an acceleration\nof related bonds in the event of a default other than a failure to pay\nprincipal of or interest on the bonds when due.\n 3. The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of such bondholders. The venue of\nany such suit, action or proceeding shall be laid in the county of\nAlbany.\n 4. Before declaring the principal of bonds due and payable, the\ntrustee shall first give thirty days notice in writing to the\ncorporation.\n