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SECTION 1199-III
Remedies of bondholders
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 5, TITLE 8-F
§ 1199-iii. Remedies of bondholders. Subject to any resolution or
resolutions adopted pursuant to paragraph (j) of subdivision four of
section one thousand one hundred ninety-nine-hhh of this title:

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 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 its own name:

(a) by action or proceeding in accordance with the civil practice law
and rules, enforce all rights of the bondholders including the right to
require the authority to collect rents, rates and charges adequate to
carry out any agreement as to, or pledge of, such rents, rates and
charges, and to 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. Venue of any
such action or proceeding shall be laid in the county.

5. Any such trustee, whether or not the issue of bonds represented by
such trustee has been declared due and payable, shall be entitled as of
right to the appointment of a receiver of any part or parts of the
properties the revenues of which are pledged for the security of the
bonds of such issue, and, subject to any pledge or agreement with
holders of such bonds, such receiver may enter and take possession of
such part or parts of the properties and shall take possession of all
moneys and other property derived from such part or parts of such
properties and proceed with any construction thereon or the acquisition
of any property, real or personal, in connection therewith which the
authority is under obligation to do, and to operate, maintain and
reconstruct such part or parts of the properties and collect and receive
all revenues thereafter arising therefrom subject to any pledge thereof
or agreement with bondholders relating thereto and perform the public
duties and carry out the agreements and obligations of the authority
under the direction of the court. 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 revenues derived from the properties.

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