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SECTION 537
Remedies of bondholders
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 3, TITLE 2
§ 537. Remedies of bondholders. 1. In the event that the authority
shall default in the payment of principal of or interest on any of the
bonds as 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 the bonds, the holders of twenty-five per centum in
aggregate principal amount of the bonds then outstanding, by instrument
or instruments filed in the office of the clerk of the county of
Dutchess, Ulster, Greene or Columbia 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 per centum in 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 authority and the board
to collect tolls and rentals adequate to carry out any agreement as to,
or pledge of, such tolls and rentals, and to require the authority and
the board to carry out any other agreement 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 have
been made good, then upon written request of twenty-five per centum in
principal amount of the bonds then outstanding, shall annul 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 Dutchess, Ulster,
Greene or Columbia county.

4. Before declaring the principal of all bonds due and payable the
trustee shall first give notice in writing to the authority and to the
attorney-general of the state of New York and if, when such notice is
given to the attorney-general the legislature shall be in session, the
trustee shall not declare the principal of the bonds due before the
legislature adjourns sine die, or if the legislature be not then in
session the trustee shall not declare the principal of the bonds due
until such an adjournment of the next regular session. If at such
session the legislature shall take any action as a result of which past
due principal and interest with interest on past due interest, together
with the fees, counsel fees and expenses of the trustee and of the
receiver, if any, as fixed by the court, shall be paid within sixty days
of its adjournment, default in the payment thereof shall thereby be
cured.

5. Any such trustee shall, whether or not all bonds have been declared
due and payable, be entitled as of right to the appointment of a
receiver who may enter and take possession of the bridges or any part or
parts thereof and operate and maintain the same and collect and receive
all tolls, rentals and other revenues thereafter arising therefrom in
the same manner as the 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 proceedings 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
tolls, rentals and other revenues derived from the bridges.

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.

7. Whenever the word "bonds" or the word "bondholders" shall have been
used in this section five hundred and thirty-seven said word shall be
deemed to apply only to the bonds or the holders of the bonds of the
particular series affected by the default or failure, and the remedies
conferred by this section shall be available only to the holders of the
bonds of the series, and shall apply only to the bridge or bridges
affected by such default or failure.