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This entry was published on 2014-09-22
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SECTION 27
Remedies of noteholders and bondholders
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 27. Remedies of noteholders and bondholders. (1) In the event that
the corporation 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 corporation shall
fail or refuse to comply with the provisions of this act, 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 suit, action or proceeding in accordance with the civil
practice law and rules, enforce all rights of the noteholders or
bondholders, to require the corporation to carry out any other
agreements with the holders of such notes or bonds and to perform its
duties under this act;

(b) bring suit upon such notes or bonds;

(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 notes or
bonds;

(d) by action or suit, 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 in which the principal office of the corporation is located.

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