N.Y. Public Authorities Law Section 1273
Remedies of noteholders and bondholders


1.

In the event that the authority shall default in the payment of principal of or interest on any issue of notes or 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 notes or bonds, the holders of twenty-five per centum in aggregate principal amount of the notes or bonds of such issue than outstanding, by instrument or instruments filed in the office of the clerk of any county in which the authority operates and has an office and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such notes or 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 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 noteholders or bondholders, including the right to require the authority to collect fares, tolls, rentals, rates, charges and other fees adequate to carry out any agreement as to, or pledge of, such fares, tolls, rentals, rates, charges and other fees and to require the authority to carry out any other agreements with the holders of such notes or bonds and to perform its duties under this title;

(b)

bring suit upon such notes or bonds;

(c)

by action or suit, require the authority to account as if it were the trustee of an express trust for the holders of such notes or bonds;

(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 notes or bonds;

(e)

declare all such notes or 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 notes or bonds then outstanding, to 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 incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.

4.

The supreme court shall have jurisdiction of any suit, action or proceeding by the trustee on behalf of such noteholders or bondholders. The venue of any such suit, action or proceeding shall be laid in the county in which the instrument or instruments are filed in accordance with subdivision one of this section.

5.

Before declaring the principal of notes or bonds due and payable, the trustee shall first give thirty days’ notice in writing to the governor, to the authority, to the comptroller and to the attorney general of the state.

Source: Section 1273 — Remedies of noteholders and bondholders, https://www.­nysenate.­gov/legislation/laws/PBA/1273 (updated Sep. 22, 2014; accessed Jul. 13, 2024).

1260
Short title
1261
Definitions
1262
Metropolitan commuter transportation district
1263
Metropolitan transportation authority
1264
Purposes of the authority
1264‑A
State of emergency
1265
General powers of the authority
1265‑A
Contracts
1265‑B
Metropolitan transportation authority small business mentoring program
1266
Special powers of the authority
1266‑A
Medical emergency services
1266‑B
Medical emergency services plan
1266‑C
Transit projects
1266‑D
Long Island rail road commuter’s council
1266‑E
Metro-North rail commuter council
1266‑F
Medical emergency services plan
1266‑G
Excess loss fund
1266‑H
Authority police force
1266‑I
The permanent citizens advisory committee
1266‑J
Metropolitan transportation authority pledge to customers
1266‑K
Expired fare transfer policy
1266‑L
Surveillance cameras
1266‑L*2
Light duty for employees
1266‑M
Information concerning services for human trafficking victims
1267
Acquisition and disposition of real property
1267‑A
Acquisition and disposition of real property by department of transportation
1267‑B
Transit facilities for transit construction fund
1268
Co-operation and assistance of other agencies
1268‑A
Promotion of qualified transportation fringes
1269
Notes, bonds and other obligations of the authority
1269‑A
Metropolitan transportation authority capital program review board
1269‑B
Capital program plans
1269‑C
Metropolitan transportation authority capital program review board
1269‑D
Submission of strategic operation plan
1269‑E
Financial and operational reports
1269‑F
Mission statement and measurement report
1269‑G
Requirements for certain authority contracts and related subcontracts
1270
Reserve funds and appropriations
1270‑A
Metropolitan transportation authority special assistance fund
1270‑B
Metropolitan transportation authority Dutchess, Orange and Rockland fund
1270‑C
Metropolitan transportation authority dedicated tax fund
1270‑D
Consolidated financings
1270‑E
Implementation of the Transportation Infrastructure Bond Act of 2000
1270‑F
Implementation of the rebuild and renew New York transportation bond act of two thousand five
1270‑G
Regulation of certain authority expenditures
1270‑H
Metropolitan transportation authority finance fund
1270‑I
New York city transportation assistance fund
1270‑J
Metropolitan transportation authority commercial gaming revenue fund
1271
Agreement of the state
1272
Right of state to require redemption of bonds
1273
Remedies of noteholders and bondholders
1274
Notes and bonds as legal investment
1275
Exemption from taxation
1276
Actions against the authority
1276‑A
Annual audit of authority
1276‑B
Authority budget and financial plan
1276‑C
Independent audit of authority
1276‑D
Independent audit by the legislature
1276‑E
Reporting
1276‑F
Metropolitan transportation authority transit performance metrics
1277
Station operation and maintenance
1277‑A
Transfer and receipt of surplus funds
1278
Title not affected if in part unconstitutional or ineffective
1279
Metropolitan transportation authority inspector general
1279‑A
Management advisory board
1279‑B
Transition--election to withdraw from the metropolitan commuter transportation district
1279‑C
The office of legislative and community input
1279‑D
Supplemental revenue reporting program
1279‑E
Assignment, transfer, sharing or consolidating powers, functions or activities
1279‑F
Independent forensic audit
1279‑G
Major construction review unit
1279‑H
Debarment
1279‑I
Open data reporting
1279‑L
Right to share employees

Accessed:
Jul. 13, 2024

Last modified:
Sep. 22, 2014

§ 1273’s source at nysenate​.gov

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