This text of New York § 27 (Remedies of noteholders and bondholders) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
§ 27. Remedies of noteholders and bondholders.
(1)In the event that\nthe corporation shall default in the payment of principal of or interest\non any issue of notes or bonds after the same shall become due, whether\nat maturity or upon call for redemption, and such default shall continue\nfor a period of thirty days, or in the event that the corporation shall\nfail or refuse to comply with the provisions of this act, or shall\ndefault in any agreement made with the holders of any issue of notes or\nbonds, the holders of twenty-five per centum in aggregate principal\namount of the notes or bonds of such issue then outstanding, by\ninstrument or instruments filed in the office of the clerk of the county\nof Albany and approved or acknowledged in the same manner as a deed to\nbe recorded,
Free access — add to your briefcase to read the full text and ask questions with AI
§ 27. Remedies of noteholders and bondholders. (1) In the event that\nthe corporation shall default in the payment of principal of or interest\non any issue of notes or bonds after the same shall become due, whether\nat maturity or upon call for redemption, and such default shall continue\nfor a period of thirty days, or in the event that the corporation shall\nfail or refuse to comply with the provisions of this act, or shall\ndefault in any agreement made with the holders of any issue of notes or\nbonds, the holders of twenty-five per centum in aggregate principal\namount of the notes or bonds of such issue then outstanding, by\ninstrument or instruments filed in the office of the clerk of the county\nof Albany and approved or acknowledged in the same manner as a deed to\nbe recorded, may appoint a trustee to represent the holders of such\nnotes or 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 such notes or bonds then\noutstanding shall, in his or its own name:\n (a) by suit, action or proceeding in accordance with the civil\npractice law and rules, enforce all rights of the noteholders or\nbondholders, to require the corporation to carry out any other\nagreements with the holders of such notes or bonds and to perform its\nduties under this act;\n (b) bring suit upon such notes or bonds;\n (c) by action or suit, require the corporation to account as if it\nwere the trustee of an express trust for the holders of such notes or\nbonds;\n (d) by action or suit, enjoin any acts or things which may be unlawful\nor in violation of the rights of the holders of such notes or bonds;\n (e) declare all such notes or bonds due and payable, and if all\ndefaults shall be made good, then, with the consent of the holders of\ntwenty-five per centum of the principal amount of such notes or bonds\nthen outstanding, to annul such declaration and its consequences.\n (3) 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 bondholders or noteholders in the enforcement and\nprotection of their rights.\n (4) The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of such noteholders or bondholders.\nThe venue of any such suit, action or proceeding shall be laid in the\ncounty in which the principal office of the corporation is located.\n (5) Before declaring the principal of notes or bonds due and payable,\nthe trustee shall first give thirty days notice in writing to the\ngovernor, to the corporation, and to the attorney general of the state.\n