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This entry was published on 2014-09-22
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SECTION 1197-H
Remedies of bondholders
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 5, TITLE 8-B
§ 1197-h. Remedies of bondholders. 1. In the event that the authority
shall default in the payment of principal of or interest on any issue 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 authority shall fail or refuse to
comply with the provisions of this title, or shall default in any
agreement made with the holders of any issue of the bonds, the holders
of twenty-five per centum in aggregate principal amount of the bonds of
such issue then outstanding, by instrument or instruments filed in the
office of the clerk of the applicable county and proved or acknowledged
in the same manner as a deed to be recorded, may appoint a trustee to
represent the holders of such bonds for the purposes herein provided.

2. Such trustee may, and upon written request of the holders of
twenty-five per centum in principal amount of such bonds outstanding
shall, in his or her own name:

(a) by action or proceeding in accordance with the civil practice law
and rules, enforce all rights of the bondholders and require the
authority to carry out any other agreements with the holders of such
bonds and to perform its duties under this title;

(b) bring an action or proceeding upon such bonds;

(c) by action or proceeding, require the authority to account as if it
were the trustee of an express trust for the holders of such bonds;

(d) by action or proceeding, enjoin any acts or things which may be
unlawful or in violation of the rights of the holders of such bonds; and

(e) declare all such bonds due and payable, and if all defaults shall
be made good, then with the consent of the holders of twenty-five per
centum of the principal amount of such bonds then outstanding, annul
such declaration and its consequences.

3. 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 incidental to the general
representation of bondholders in the enforcement and protection of their
rights.

4. The state supreme court shall have jurisdiction of any action or
proceeding by the trustee on behalf of such bondholders.

5. Before declaring the principal of bonds due and payable, the
trustee shall first give thirty days' notice in writing to the
authority.