1840-I - Remedies of bondholders and noteholders.
§ 1840-i. Remedies of bondholders and noteholders. 1. In the event that the authority shall default in the payment of principal of or interest on or sinking fund payment on, any issue of bonds or notes after the same shall become due, whether at maturity or otherwise or in the event that the authority shall default in any agreement made with the holders of any issue of bonds or notes, the holders of twenty-five per centum in aggregate principal amount of the bonds or notes of such issue then outstanding, by instrument or instruments filed in the office of the clerk of Nassau and Suffolk counties and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such bonds or notes for the purposes herein provided. 2. Such trustee may, and upon written request of the holders of twenty-five percentum 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 bondholders or noteholders, including the right to require the authority to carry out any agreement with such holders and to perform its duties pursuant to this title; (b) bring suit upon such bonds or notes; (c) by action or suit, require the authority to account as if it were the trustee of any express trust for the holders of such bonds or notes; (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 bonds or notes; (e) declare all such bonds or notes 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 bonds or notes then outstanding, annul such declaration and its consequences. 3. The supreme court shall have original, exclusive jurisdiction of any suit, action or proceeding by the noteholder or bondholder trustee on behalf of such noteholders or bondholders. Any such suit or action shall be brought or commenced in either the county of Nassau or the county of Suffolk. 4. Before declaring the principal of all such bonds due and payable, the trustee shall first give thirty days' notice in writing to the authority and the chairman of the board of supervisors and county legislature.