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This entry was published on 2014-09-22
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Actions for accounting by minority groups; expenses thereof
Real Property (RPP) CHAPTER 50, ARTICLE 4-A
§ 130-f. Actions for accounting by minority groups; expenses thereof.
In any special proceeding or action brought by or on behalf of any
minority bondholder or group of minority bondholders, or any person or
group of persons not holding at least fifty-one per centum of the stock
or bonds of the mortgage issue, but claiming an interest in the trust
property, for a judicial accounting, the court may take into
consideration the information as to income and disbursements theretofore
furnished to bondholders, the merits and good faith of the proceeding or
action, and whether the accounting will be of value to the bondholders,
as well as the cost of such accounting, and the court may require that
the petitioner or plaintiff furnish a surety company bond to indemnify
the estate against the expenses of the accounting, including fees of the
referee to take the accounting, stenographic fees, and the expenses of
the trustee, and may direct that, if it should appear that the
accounting result in any practical benefit to all the bondholders, the
court should then, in its discretion, release the indemnity, and that if
no such benefit accrue, the petitioner or plaintiff and his attorney
should receive no compensation, and the trust fund should be reimbursed
for the expenses saddled upon it by reason thereof.