§ 3664. Remedies of bondholders. Subject to any resolution or\nresolutions adopted pursuant to paragraph (f) of subdivision seven of\nsection thirty-six hundred fifty-six of this title:\n 1. In the event that the authority shall default in the payment of\nprincipal of or interest on any issue of bonds after the same shall\nbecome due, whether at maturity or upon call for redemption, and such\ndefault shall continue for a period of thirty days, or shall default in\nany agreement made with the holders of any issue of bonds, the holders\nof at least twenty-five per centum in aggregate principal amount of the\nbonds of such issue then outstanding, by instrument or instruments filed\nin the office of the clerk of the county and proved or acknowledged in\nthe same manner as a deed to be recorded, may appoint a trustee to\nrepresent the holders of such bonds for the purpose provided in this\nsection.\n 2. Such trustee may, and upon written request of the holders of at\nleast twenty-five per centum in principal amount of such bonds\noutstanding shall, in his or her or its own name:\n (a) by action or proceeding in accordance with the civil practice law\nand rules, enforce all rights of the bondholders and require the\nauthority to carry out any other agreements with the holders of such\nbonds and to perform its duties under this title;\n (b) bring an action or proceeding upon such bonds;\n (c) by action or proceeding, require the authority to account as if it\nwere the trustee of an express trust for the holder of such bonds; and\n (d) by action or proceeding, enjoin any acts or things which may be\nunlawful or in violation of the rights of the holders of such bonds.\n 3. Such trustee shall, in addition to the provisions of subdivisions\none and two of this section, have and possess all of the powers\nnecessary or appropriate for the exercise of any functions specifically\nset forth in this section or incident to the general representation of\nbondholders in the enforcement and protection of their rights.\n 4. The supreme court shall have jurisdiction of any action or\nproceeding by the trustee on behalf of such bondholders.\n
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.