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SECTION 1865
Rights and remedies of bondholders and noteholders
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 9
§ 1865. Rights and remedies of bondholders and noteholders. The
holders of bonds and notes shall have the following rights and remedies,
subject to the terms of the resolution authorizing such bonds and notes
or any trust indenture, secured loan agreement or other instrument
related thereto:

1. In the event that the authority shall default in the payment of
principal of or interest on any issue of bonds or notes 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 contract made with the holders of
any issue of bonds or notes, the holders of twenty-five per centum in
aggregate principal amount of the bonds or notes of such issue then
outstanding, by instrument or instruments filed in the office of the
clerk in the county of Albany and approved or acknowledged in the same
manner as a deed to be recorded, may appoint a trustee to represent the
holders of such bonds or notes 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 or notes then
outstanding shall, in his or its own name

(a) by suit, action or special proceeding, enforce all rights of the
bondholders or noteholders, including the right to require the authority
to collect fees, rentals and charges adequate to carry out any
agreements with the holders of such bonds or notes and to perform its
duties under this title;

(b) bring suit upon such bonds or notes;

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

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

(e) declare all such bonds or notes 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 or notes
then outstanding, to annul such declaration and its consequences.

3. Such trustee, whether or not the issuance of bonds or notes
represented by such trustee had been declared due and payable, shall be
entitled as of right to the appointment of a receiver of any property of
the authority, the fees, rentals, charges or other revenues of which are
pledged for the security of the bonds or notes of such issue and such
receiver may enter and take possession of such property, or any part or
parts thereof and operate and maintain the same and receive all fees,
charges, rentals and other revenues thereafter arising therefrom and
exercise such other powers of the authority as the court may deem
advisable 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 fees, charges, rentals and other
revenues derived from such properties.

4. 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.

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

6. Before declaring the principal of bonds or notes 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.