N.Y. Public Authorities Law Section 1865
Rights and remedies of bondholders and noteholders


The holders of bonds and notes shall have the following rights and remedies, subject to the terms of the resolution authorizing such bonds and notes or any trust indenture, secured loan agreement or other instrument related thereto:

1.

In the event that the authority shall default in the payment of principal of or interest on any issue of bonds or notes 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 contract 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 in the county of Albany and approved 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 per centum in principal amount of such bonds or notes then outstanding shall, in his or its own name (a) by suit, action or special proceeding, enforce all rights of the bondholders or noteholders, including the right to require the authority to collect fees, rentals and charges adequate to carry out any agreements with the holders of such bonds or notes and to perform its duties under this title;

(b)

bring suit upon such bonds or notes;

(c)

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

(d)

by action or suit in equity, enjoin any act 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, to annul such declaration and its consequences.

3.

Such trustee, whether or not the issuance of bonds or notes represented by such trustee had been declared due and payable, shall be entitled as of right to the appointment of a receiver of any property of the authority, the fees, rentals, charges or other revenues of which are pledged for the security of the bonds or notes of such issue and such receiver may enter and take possession of such property, or any part or parts thereof and operate and maintain the same and receive all fees, charges, rentals and other revenues thereafter arising therefrom and exercise such other powers of the authority as the court may deem advisable and perform the public duties and carry out the agreements and obligations of the authority under the direction of the court. In any suit, action or proceeding by the trustee the fees, counsel fees and expenses of the trustee and of the receiver, if any, shall constitute taxable disbursements and all costs and disbursements allowed by the court shall be a first charge on any fees, charges, rentals and other revenues derived from such properties.

4.

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.

5.

The supreme court shall have jurisdiction of any suit, action or proceeding by the trustee on behalf of such bondholders or noteholders. The venue of any such suit, action or proceeding shall be laid in the county of Albany.

6.

Before declaring the principal of bonds or notes 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 1865 — Rights and remedies of bondholders and noteholders, https://www.­nysenate.­gov/legislation/laws/PBA/1865 (updated Sep. 22, 2014; accessed Dec. 21, 2024).

1850
Short title
1850‑A
Legislative declaration
1851
Definitions
1852
New York state energy research and development authority
1853
Approval power of the governor
1854
Purposes and specific powers of the authority
1854‑A
Nuclear waste repository siting
1854‑B
Low-level radioactive waste management facilities
1854‑C
Permanent disposal facilities
1854‑D
Generator reporting and fees
1855
General powers of the authority
1856
Acquisition of real property
1857
Officers and employees
1858
Assistance by state officers, departments, boards, divisions and commissions
1859
Deposit, investment and accounting of moneys of the authority
1860
Bonds and notes
1860‑A
Reserve funds and appropriations
1861
Exemption from taxation of the property and income of the authority
1862
Exemption from taxation of bonds and notes
1863
Bonds and notes legal investments for fiduciaries
1864
Right of state to require redemption of bonds
1865
Rights and remedies of bondholders and noteholders
1866
State not liable on bonds and notes
1867
Annual reports
1867‑A
Federal insurance or guaranty
1868
Inconsistent provisions of other acts
1868‑A
Actions
1869
Termination of the authority
1870
Title not affected if in part unconstitutional or ineffective
1871
Public service law not applicable to authority
1872
Green residential building program
1872‑A
Affordable residential green building program
1873
Examination and reporting of energy efficiency grant recipients
1875
Legislative findings and declaration of intent
1876
High temperature technology research program established
1877
Purposes of the high temperature technology research program
1878
State coordination, oversight and technology transfer
1879
Funds
1880
Legislative findings and declaration of intent
1881
High phase order electric transmission research project
1882
School energy efficiency collaboration program
1883
State oversight and funding
1884
Zero-emission bus roadmap

Accessed:
Dec. 21, 2024

Last modified:
Sep. 22, 2014

§ 1865’s source at nysenate​.gov

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