Section 489. Remedies of noteholders and bondholders

1. In the event that
  the fund 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 fund shall fail or
  refuse to comply with the provisions of this article, 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 then outstanding, by instrument or
  instruments filed in the office of the city clerk of the city of Yonkers
  and approved 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 and require the fund  to  carry  out  agreements  with  such
  noteholders or bondholders and to perform its duties under this article;
    (b) bring suit upon such notes or bonds;
    (c)  by  action or suit, require the fund 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, annul such declaration and its consequences.
    3.  Such  trustees 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 of Westchester.
    5. Before declaring the principal of notes or bonds due  and  payable,
  the trustee shall first give thirty days' notice in writing to the mayor
  of  the  city  of Yonkers, to the fund, to the board of education of the
  city of Yonkers and to the attorney general of the state.