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This entry was published on 2014-09-22
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SECTION 59.21
Remedies of bondholders
Arts and Cultural Affairs (ACA) CHAPTER 11-C, TITLE V, ARTICLE 59
§ 59.21. Remedies of bondholders. 1. In the event that the Planetarium
Authority shall default in the payment of principal of or interest on
any of the bonds after the same shall become due, whether at maturity or
upon call for redemption, and such default shall continue for a period
of thirty days, or in the event that the Planetarium Authority shall
fail or refuse to comply with the provisions of this title, or shall
default in any agreement made with the holders of the bonds, the holders
of twenty-five percentum in aggregate principal amount of the bonds then
outstanding by instrument or instruments filed in the office of the
clerk of the county of New York and proved or acknowledged in the same
manner as a deed to be recorded may appoint a trustee to represent the
bondholders for the purposes herein provided;

2. Such trustee may, and upon written request of the holders of
twenty-five percentum in the principal amount of the bonds then
outstanding shall, in his or its own name:

(a) By suit, action or special proceeding enforce all rights of the
bondholders, including the right to require the Planetarium Authority
and the board to collect admission fees adequate to carry out any
agreement as to, or pledge of, such admission fees, and to require the
Planetarium Authority and the board to carry out any other agreements
with the bondholders and to perform its and their duties under this
title;

(b) Bring suit upon the bonds;

(c) By action or suit in equity, require the authority to account as
if it were the trustee of an express trust for the bondholders;

(d) By action or suit in equity, enjoin any acts or things which may
be unlawful or in violation of the rights of the bondholders;

(e) Declare all bonds due and payable, and if all defaults shall be
made good annul, upon the written consent of the holders of twenty-five
percentum in principal amount of the bonds then outstanding, such
declaration and its consequences.

3. The supreme court shall have jurisdiction of any suit, action or
proceeding by the trustee on behalf of the bondholders. The venue of any
such suit, action or proceeding shall be laid in New York county.

4. Before declaring the principal of all bonds due and payable the
trustee shall first give thirty days' notice in writing to the
Planetarium Authority.

5. Any such trustee, whether or not all bonds have been declared due
and payable, shall be entitled as of right to the appointment of a
receiver who may enter and take possession of the planetarium or any
part or parts thereof and operate and maintain the same and collect and
receive all admission fees and other revenues thereafter arising
therefrom in the same manner as the Planetarium Authority itself might
do and shall deposit all such moneys in a separate account and apply the
same in such manner as the court shall direct. In any suit, action or
proceeding by the trustee the fees, counsel fees and expenses of the
trustee and of the receiver, if any, shall constitute taxable
disbursements and all costs and disbursements allowed by the court shall
be a first charge on any admission fees and other revenues derived from
the planetarium.

6. Such trustee shall in addition to the foregoing have and possess
all of the powers necessary or appropriate for the exercise of any
functions specifically set forth herein or incident to the general
representation of the bondholders in the enforcement and protection of
their rights.