New York Laws
Title 3 - Erie County Fiscal Stability Authority
3963 - Remedies of Bondholders.

§ 3963. Remedies of bondholders. Subject to any resolution or
resolutions adopted pursuant to paragraph (f) of subdivision six of
section thirty-nine hundred sixty-two of this title: 1. In the event
that the authority shall default in the payment of principal of or
interest on any issue of bonds, notes or other obligations 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 shall
default in any agreement made with the holders of any issue of bonds,
notes, or other obligations, the holders of at least twenty-five per
centum in aggregate principal amount of the bonds, notes or other
obligations of such issue then outstanding, by instrument or instruments
filed in the office of the clerk of the 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, notes or other
obligations for the purpose provided in this section.

2. Such trustee may, and upon written request of the holders of at
least twenty-five per centum in principal amount of such bonds, notes or
other obligations outstanding shall, in his or her or its own name: (a)
by action or proceeding in accordance with the civil practice law and
rules, enforce all rights of the holders of such bonds, notes or other
obligations and require the authority to carry out any other agreements
with the holders of such bonds, notes or other obligations and to
perform its duties under this title; (b) bring an action or proceeding
upon such bonds, notes or other obligations; (c) by action or
proceeding, require the authority to account as if it were the trustee
of an express trust for the holder of such bonds, notes or other
obligations; and (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, notes or other obligations.

3. Such trustee shall, in addition to the provisions of subdivisions
one and two of this section, have and possess all of the powers
necessary or appropriate for the exercise of any functions specifically
set forth in this section or incident to the general representation of
holders of bonds, notes or other obligations in the enforcement and
protection of their rights.

4. The supreme court of the county shall have jurisdiction of any
action or proceeding by the trustee on behalf of such holders of bonds,
notes or other obligations.