Legislation

Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 1273
Remedies of noteholders and bondholders
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 5, TITLE 11
§ 1273. Remedies of noteholders and bondholders. 1. In the event that
the authority shall default in the payment of principal of or interest
on any issue of notes or 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 notes or
bonds, the holders of twenty-five per centum in aggregate principal
amount of the notes or bonds of such issue than outstanding, by
instrument or instruments filed in the office of the clerk of any county
in which the authority operates and has an office and proved or
acknowledged in the same manner as a deed to be recorded, may appoint a
trustee to represent the holders of such notes or 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 notes or bonds then
outstanding shall, in his or its own name:

(a) by suit, action or proceeding in accordance with the civil
practice law and rules, enforce all rights of the noteholders or
bondholders, including the right to require the authority to collect
fares, tolls, rentals, rates, charges and other fees adequate to carry
out any agreement as to, or pledge of, such fares, tolls, rentals,
rates, charges and other fees and to require the authority to carry out
any other agreements with the holders of such notes or bonds and to
perform its duties under this title;

(b) bring suit upon such notes or bonds;

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

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

(e) declare all such notes or 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 notes or bonds
then outstanding, to 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 incident to the general
representation of bondholders or noteholders in the enforcement and
protection of their rights.

4. The supreme court shall have jurisdiction of any suit, action or
proceeding by the trustee on behalf of such noteholders or bondholders.
The venue of any such suit, action or proceeding shall be laid in the
county in which the instrument or instruments are filed in accordance
with subdivision one of this section.

5. Before declaring the principal of notes or bonds due and payable,
the trustee shall first give thirty days' notice in writing to the
governor, to the authority, to the comptroller and to the attorney
general of the state.