§ 42-64-25 - Remedies of bondholders and note-holders.
SECTION 42-64-25
§ 42-64-25 Remedies of bondholders andnote-holders. – (a) In the event that the Rhode Island economic development corporation shalldefault in the payment of principal of or interest on any bonds or notes issuedunder this chapter after the bonds or notes shall become due, whether atmaturity or upon call for redemption, and the default shall continue for aperiod of thirty (30) days, or in the event that the corporation shall fail orrefuse to comply with the provisions of this chapter, or shall default in anyagreement made with the holders of an issue of bonds or notes of thecorporation the holders of twenty-five percent (25%) in aggregate principalamount of the bonds or notes of an issue then outstanding, by instrument orinstruments filed in the office of the secretary of state and proved oracknowledged in the same manner as a deed to be recorded, may appoint a trusteeto represent the holders of the bonds or notes for the purposes provided inthis section.
(b) The trustee may, and upon written request of the holdersof twenty-five percent (25%) in principal amount of the bonds or notes thenoutstanding shall, in the trustee's own name:
(1) Enforce all rights of the bondholders or note-holders,including the right to require the corporation to collect rent, interestrepayments and payments on the leases, mortgages, loan agreements and salesagreements held by it adequate to carry out any agreement as to, or pledge of,rent, interest repayments and payments, and to require the corporation to carryout any other agreements with the holders of the bonds or notes and to performits duties under this chapter;
(2) Enforce all rights of the bondholders or note-holders soas to carry out any contract as to, or pledge of, revenues, and to require thecorporation to carry out and perform the terms of any contract with the holdersof its bonds or notes or its duties under the chapter;
(3) Bring suit upon all or any part of the bonds or notes;
(4) By action or suit, require the corporation to account asif it were the trustee of an express trust for the holders of the bonds ornotes;
(5) By action or suit, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of the bonds or notes;
(6) Declare all the bonds or notes due and payable and, ifall defaults shall be made good, then, with the consent of the holders oftwenty-five percent (25%) of the principal amount of the bonds or notes thenoutstanding, to annul the declaration and its consequences.
(c) The trustee shall, in addition to the foregoing, have andpossess all the powers necessary or appropriate for the exercise of anyfunctions specifically set forth in this section or incident to the generalrepresentation of bondholders or note-holders in the enforcement and protectionof their rights.
(d) Before declaring the principal of bonds or notes due andpayable, the trustee shall first give thirty (30) days' notice, in writing, tothe governor of the state and to the corporation.
(e) The superior court of Providence County shall havejurisdiction of any suit, action, or proceeding by the trustee on behalf ofbondholders or note-holders.