36-55.47 - Remedies of noteholders and bondholders.
§ 36-55.47. Remedies of noteholders and bondholders.
(1) In the event that HDA shall default in the payment of principal of orinterest on any issue of notes and bonds after the same shall become due,whether at maturity or upon call for redemption, and such default shallcontinue for a period of thirty days, or in the event that HDA shall fail orrefuse to comply with the provisions of this chapter, or shall default in anyagreement made with the holders of any issue of notes or bonds, the holdersof twenty-five per centum in aggregate principal amount of the notes or bondsof such issue then outstanding, by instrument or instruments filed in theoffice of the clerk of the Circuit Court of the City of Richmond,Commonwealth of Virginia, and proved or acknowledged in the same manner as adeed to be recorded, may appoint a trustee to represent the holders of suchnotes or bonds for the purposes herein provided.
(2) Such trustee may, and upon written request of the holders of twenty-fiveper 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 provisions of Title8.01, enforce all rights of the noteholders or bondholders, including theright to require HDA to carry out any agreements with such holders and toperform its duties under this chapter;
(b) Bring suit upon such notes or bonds;
(c) By action or suit, require HDA to account as if it were the trustee of anexpress trust for the holders of such notes or bonds;
(d) By action or suit, enjoin any acts or things which may be unlawful or inviolation of the rights of the holders of such notes or bonds;
(e) Declare all such notes or bonds due and payable, and if all defaultsshall be made good, then, with the consent of the holders of twenty-five percentum of the principal amount of such notes or bonds then outstanding, annulsuch declaration and its consequences.
(3) The Circuit Court of the City of Richmond shall have jurisdiction of anysuit, action or proceeding by the trustee on behalf of such noteholders orbondholders. The venue of any suit, action or proceeding shall be laid in theCity of Richmond, Commonwealth of Virginia.
(4) Before declaring the principal of notes or bonds due and payable, thetrustee shall first give thirty days' notice in writing to HDA.
(1972, c. 830.)