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This entry was published on 2014-09-22
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SECTION 50
Remedies of noteholders and bondholders
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 3
§ 50. Remedies of noteholders and bondholders. 1. In the event that
the agency 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 agency shall fail
or refuse to comply with the provisions of this article, 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 then outstanding, by
instrument or instruments filed in the office of the clerk of 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
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 action or special proceeding in accordance with the civil
practice law and rules, enforce all rights of the noteholders or
bondholders, including the right to require the agency to collect fees
and charges and interest and amortization payments on mortgage loans
made by it adequate to carry out any agreement as to, or pledge of, such
fees and charges and interest and amortization payments on such
mortgages, and other properties and to require the agency 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 special proceeding require the agency to account as
if it were the trustee of an express trust for the holders of such notes
or bonds;

(d) by action or special proceeding 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 of Albany.

5. Before declaring due and payable the principal of notes or bonds
issued in connection with any mortgage or other obligation securing a
mortgage loan made by the agency, the trustee shall first give thirty
days' notice in writing to the governor, to the agency, to the
commissioner of housing and community renewal, the state commissioner of
health, the state commissioner of mental hygiene or the state
commissioner of social services, as the case may be, and to the attorney
general of the state.