Section 465. 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  New
  York  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 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 of New York.
    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 New York, to the fund, to the board of education  of  the
  city of New York and to the attorney general of the state.