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This entry was published on 2020-10-16
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Remedies of holders of bonds and notes
Racing, Pari-Mutuel Wagering and Breeding Law (PML) CHAPTER 47-A, ARTICLE 5
§ 512. Remedies of holders of bonds and notes. 1. In the event that a
corporation defaults in the payment of the principal of or interest on
any issue of bonds or notes after the same becomes due, whether at
maturity or upon call for redemption, and such default continues for a
period of thirty days, or in the provisions of this article, or defaults
in any agreement made with the holders of any issue of the bonds or
notes, the holders of twenty-five percent 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 of any county in which the
corporation operates 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 percent in principal amount of such bonds or notes then
outstanding shall, in his, her or its own name:

a. by suit, action or special proceedings enforce all rights of the
holders of the bonds or notes, including the right to require the
corporation to carry out any agreements with such holders and to perform
its duties under this title;

b. bring suit upon such bonds or notes;

c. by action or suit, require the corporation 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, enjoin any acts or things that may be unlawful
or in violation of the rights of the holders of such bonds or notes; and

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 percent of the principal amount of such bonds or notes then
outstanding, annul such declaration and its consequences.

3. The supreme court shall have jurisdiction of any suit, action or
proceedings by the trustee on behalf of such holders of bonds or notes.
The venue of any such suit, action or proceeding shall be in the
judicial district in which the principal office of the corporation is

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

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 the revenues which are pledged
for the security of the bonds of such issue, and such receiver may enter
and take possession of the premises, equipment and property which the
corporation is operating or is entitled to use or occupy, and shall take
possession of all revenues of the corporation and other moneys to which
the corporation is entitled, and shall proceed to conduct pari-mutuel,
off-track betting pursuant to the provisions of this article in the
place and stead of the corporations from which otherwise, under such
article, would constitute revenues of the corporation and shall perform
the public duties and carry out the agreements and obligations of the
corporation under the direction of the court. In any 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 allowed by the court and shall be a first charge on any
revenues of the corporation.

6. Such trustee shall in addition to the foregoing have and possess
all the powers necessary or appropriate for the exercise of any function
specifically set forth herein or incident to the general representation
of the holders of such bonds or notes in the enforcement and protection
of their rights.