2543 - Remedies of noteholders and bondholders.

§  2543. Remedies of noteholders and bondholders. 1. In the event that  the corporation shall default in the payment of principal of or interest  on or sinking fund payment on any issue of notes or bonds after the same  shall become due, whether at maturity or upon call from  redemption,  or  in  the  event  that the corporation 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  New  York  and  proved  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, including the right to require the corporation to carry out  any agreement with such holders and to perform  its  duties  under  this  title;    (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 annul such declaration and its consequences.    3. 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 New York.    4.  Before  declaring the principal of notes or bonds due and payable,  the trustee shall first give thirty  days'  notice  in  writing  to  the  corporation, the mayor and to the attorney general of the state.