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This entry was published on 2014-09-22
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SECTION 62
Remedies against the Utica transit authority
Transportation (TRA) CHAPTER 61-A, ARTICLE 2-D
§ 62. Remedies against the Utica transit authority. 1. In an action
or proceeding to foreclose a mortgage on property of the Utica transit
authority, the authority and all other necessary parties, shall be made
parties defendant and shall take such steps in said action as may be
necessary to protect the public interest therein and no costs shall be
awarded against them. Wherever under the instrument creating a lien a
notice of default in writing is required to be served upon the Utica
transit authority before the institution of a foreclosure action or
proceeding, a copy of such notice shall be served upon the chairman of
the authority at least five days before the institution of such
proceedings. At such a sale of the property of the mass transportation
authority pursuant to foreclosure or other proceedings, the municipality
or municipalities within whose territorial jurisdiction the property
exists may purchase the property affected; or such municipality or
municipalities may, prior to the institution of a foreclosure action or
proceeding, or during such action or proceeding make such payment or
take such other steps as may be necessary to cure any defaults that may
have occurred and such steps as may be necessary to protect the property
of the Utica transit authority and the public interest.

2. In the event that the Utica transit authority shall default in the
payment of principal of or interest on an issue of 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 the authority shall fail or refuse to comply with the provisions
of this article or shall default in an agreement with the holders of an
issue of bonds then outstanding, the holders of twenty-five per cent of
the aggregate principal amount of the bonds of the issue then
outstanding by instrument or instruments filed in the office of the
clerk of the county in which the principal office of the Utica transit
authority is situated and proved or acknowledged in the same manner as a
deed to be recorded, may appoint a trustee to represent the holders of
the bonds for the purposes herein provided. Such trustee may declare all
the bonds due and payable, but before declaring the principal of the
bonds due and payable, he shall first give thirty days' notice in
writing to the authority, and, if all defaults shall be made good, then
with the consent of the holders of twenty-five per cent of the aggregate
principal amount of the bonds then outstanding, he shall annul the
declaration and its consequences. He shall, in addition to any powers
granted by this section, have and possess all of the powers necessary or
appropriate for the exercise of functions specifically set forth herein
or incident to the general representation of bondholders in the
enforcement and protection of their rights.

3. In addition to any other rights and remedies, but subject to such
limitations as may be made by contract, any obligee, lessor or
mortgagee, or any trustee or agent designated in the bonds of the Utica
transit authority or appointed as provided in paragraph two of this
section, or under a resolution, mortgage or indenture executed by the
Utica transit authority as security for its bonds may:

(a) bring suit upon the bonds of the Utica transit authority;

(b) by suit, action or special proceeding at law or in equity enforce
all rights of the bondholders, including the right to require the Utica
transit authority to collect revenues, rates, fares, fees, rentals and
other charges adequate to carry out any agreement as to, or pledge of,
such revenues, rates, fares, fees, rentals and other charges, and to
require the authority to carry out any other agreement with the
bondholders and to perform its duties under this article;

(c) by suit, action or special proceeding at law or in equity compel
the authority to perform each and every term, provision and covenant
contained in any agreement of the authority with an obligee, trustee,
mortgagee or lessor and require the performance of any or all such
covenants and agreements of the Utica transit authority and of the
duties imposed upon such authority by this article;

(d) by action or suit, enjoin any acts or things which may be unlawful
or in violation of the rights of such obligee, trustee, mortgagee, or
lessor;

(e) by suit, action or proceeding in any court of competent
jurisdiction compel possession of any project or any part thereof to be
surrendered to such obligee, trustee, mortgagee, or lessor having the
right to such possession under any agreement with the authority;

(f) by suit, action or proceeding in any court of competent
jurisdiction obtain the appointment of a receiver of any municipal
project of the mass transportation authority or any part thereof and of
the rents and profits therefrom. If such receiver be appointed, he may
enter and take possession of such project or any part or parts thereof
and operate and maintain the same, and collect and receive all fees,
rates, fares, rents, revenues, or other charges thereafter arising
therefrom in the same manner as the Utica transit authority itself might
do, and shall keep such moneys in a separate account or accounts and
apply the same in accordance with the obligations of the authority as
the court shall direct;

(g) by action or suit require the Utica transit authority to account
as if it were the trustee of an express trust.

4. The supreme court of the state shall have jurisdiction of a suit,
action or proceeding by a trustee on behalf of the bondholders. The
venue of the suit, action or proceeding shall be laid in the county in
which the principal office of the Utica transit authority is situated.

5. In a suit, action or proceeding by a trustee for the bond holders,
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 courts shall be a first charge on revenues,
rates, fares, fees, rentals and other charges derived from the municipal
project.