1. In the event that the authority shall default in the payment of principal of or
interest on any issue of the bonds after the same shall become due, whether at maturity
or upon call for redemption, and such default shall continue for a period of thirty
days, or in the event that the authority shall fail or refuse to comply with the provisions
of this title, or shall default in any agreement made with the holders of any issue
of the bonds, the holders of twenty-five per centum in aggregate principal amount
of the bonds of such issue then outstanding, by instrument or instruments filed in
the office of the clerk of the applicable county 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 for the purposes herein provided.
2. Such trustee may, and upon written request of the holders of twenty-five per centum
in principal amount of such bonds outstanding shall, in his or her own name:
(a) by action or proceeding in accordance with the civil practice law and rules, enforce
all rights of the bondholders and require the authority to carry out any other agreements
with the holders of such bonds and to perform its duties under this title;
(b) bring an action or proceeding upon such bonds;
(c) by action or proceeding, require the authority to account as if it were the trustee
of an express trust for the holders of such bonds;
(d) by action or proceeding, enjoin any acts or things which may be unlawful or in
violation of the rights of the holders of such bonds; and
(e) declare all such bonds 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 then outstanding, annul such declaration and its consequences.
3. Such trustee shall in addition to the foregoing have and possess all of the powers
necessary or appropriate for the exercise of any functions specifically set forth
herein or incidental to the general representation of bondholders in the enforcement
and protection of their rights.
4. The state supreme court shall have jurisdiction of any action or proceeding by
the trustee on behalf of such bondholders.
5. Before declaring the principal of bonds due and payable, the trustee shall first
give thirty days' notice in writing to the authority.
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