§ 46-25-66 - Remedies of bondholders and noteholders.
SECTION 46-25-66
§ 46-25-66 Remedies of bondholders andnoteholders. – (a) In the event that the commission shall default in the payment of principalof or interest on any revenue bonds or revenue notes, issued pursuant to theprovisions of §§ 46-25-58 – 46-25-66, after the bonds or notesshall become due, whether at maturity or upon call for redemption, and thedefault shall continue for a period of thirty (30) days, or in the event thatthe commission shall fail or refuse to comply with the provisions of thischapter, or shall default in any agreement made with the holders of an issue ofrevenue bonds or revenue notes of the commission, the holders of twenty-fivepercent (25%) of the aggregate principal amount of the revenue bonds or revenuenotes of the issue then outstanding, by instrument or instruments filed in theoffice of the secretary of state and proved or acknowledged in the same manneras a deed to be recorded, may appoint a trustee to represent the holders of therevenue bonds or revenue notes for the purposes herein provided.
(b) The trust may, and upon written request of the holders oftwenty-five percent (25%) of the aggregate principal amount of the revenuebonds or revenue notes then outstanding shall, in his or her or its own name:
(1) Enforce all rights of the bondholders or noteholders,including the right to require the commission to collect rent, interest,repayments, and payments on the leases, mortgages, loan agreements, and salesagreements held by it to carry out any agreement as to, or pledge of, the rent,interest repayments, and payments, and to require the commission to carry outany other agreements with the holders of the revenue bonds or revenue notes andto perform its duties under this chapter;
(2) Enforce all rights of the bondholders or noteholders soas to carry out any contract as to, or pledge of, revenues, and to require thecommission to carry out and perform the terms of any contract with the holdersof its revenue bonds or revenue notes or its duties under this chapter;
(3) Bring suit upon all or any part of the revenue bonds orrevenue notes;
(4) By action or suit, require the commission to account asif it were the trustee of an express trust for the holders of the revenue bondsor revenue notes;
(5) By action or suit, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of the revenue bonds orrevenue notes;
(6) Declare all the revenue bonds or revenue notes due andpayable and, if all defaults shall be made good, then, with the consent of theholders of twenty-five percent (25%) of the aggregate principal amount of therevenue bonds or revenue notes then outstanding, to annul the declaration andits consequences.
(c) The trustees shall, in addition to the foregoing have andpossess all the powers necessary or appropriate for the exercise of anyfunctions specifically set forth herein or incident to the generalrepresentation of bondholders or noteholders in the enforcement and protectionof their rights.
(d) The superior court of Providence County shall havejurisdiction of any suit, action, or proceeding by the trustee on behalf ofbondholders or noteholders.