2040-H - Remedies of bondholders and noteholders.

§   2040-h.  Remedies  of  bondholders  and  noteholders.  Subject  to  resolutions adopted pursuant to paragraph (j) of  subdivision  three  of  section two thousand forty-g of this title:    1.  In  the  event  that the authority shall default in the payment of  principal of or interest on any issue of bonds or notes 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 authority shall fail or refuse to comply with the provisions of  this title or shall default in any agreement made with  the  holders  of  any  issue  of  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 the county and proved 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 purpose herein provided.    2. Such trustee may, and  upon  written  request  of  the  holders  of  twenty-five  percentum  in  principal  amount  of  such  bonds  or notes  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 bondholders or  noteholders, including the right to require  the  authority  to  collect  rentals,  rates, fees and charges adequate to carry out any agreement as  to, or pledge of such rentals, rates, charges  and  other  fees  and  to  require the authority to carry out any other agreements with the holders  of such bonds or notes to perform its duties under this title;    (b) bring suit upon such bonds or notes;    (c)  by action or suit, require the authority 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 which may be unlawful  or in violation of the rights of the holders of such bonds or notes;    (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 per centum of the principal amount of such  bonds  or  notes  then outstanding, to annul such declaration in 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 bondholders or  noteholders.  The  venue  of  any such suit, action or proceeding shall be laid in the  county of Suffolk.    5. Before declaring the principal of bonds or notes due  and  payable,  the  trustee  shall  first  give  thirty  days  notice in writing to the  governing body and president.    6. 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  any  part  or  parts  of  the  properties  the  revenues  of  which are pledged for the security of the  bonds or notes of such issue  and  such  receiver  may  enter  and  take  possession  of  such  part or parts of the properties and subject to any  pledge or agreement with holders of bonds or notes shall take possession  of all moneys and other property derived from such part or parts of  the  properties  and proceed with any construction thereon or the acquisition  of any property, real or personal  in  connection  therewith  which  the  authority  is  under  obligation  to  do,  and  to operate, maintain and  reconstruct such part or parts of the properties and collect and receiveall revenues thereafter arising therefrom subject to any pledge  thereof  or  agreement with bond or note holders relating thereto and perform the  public duties and carry  out  the  agreements  and  obligations  of  the  authority  under  the  direction  of  the  court. In any suit, 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 and all costs and disbursements allowed by the court shall  be a first charge on any revenues derived from the properties.