Section 3408. Remedies of bondholders

Subject  to  any  resolution  or
  resolutions adopted pursuant to this title:
    1. In the event that the corporation shall default in the  payment  of
  principal  of  or  interest  on  any issue of 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  corporation  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  bonds,  the  holders of twenty-five percent in aggregate
  principal amount of  the  bonds  of  such  issue  then  outstanding,  by
  instrument or instruments filed in the office of the clerk of the county
  in  which  the principal office of the corporation is located 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 for the purpose  herein
  provided.
    2.  Such  trustee  may,  and  upon  written  request of the holders of
  twenty-five per centum in principal amount  of  such  bonds  outstanding
  shall, in its own name:
    (a)  by action or proceeding in accordance with the civil practice law
  and rules, enforce all rights of the bondholders, including the right to
  require the corporation  to  collect  rents,  rates,  fees  and  charges
  adequate  to  carry  out  any agreement as to, or pledge of, such rents,
  rates, fees and charges and to require the corporation to carry out  any
  other  agreements  with  the holders of such bonds to perform its duties
  under this title;
    (b) bring an action or proceeding upon such bonds;
    (c) by action or proceeding, require the corporation to account as  if
  it were the trustee of an express trust for the holders of such bonds;
    (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; and
    (e) declare all such bonds due and payable, and if all defaults  shall
  be  made  good,  then with the consent of the holders of the twenty-five
  per centum of the principal amount of such 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 in the enforcement and protection of their
  rights.
    4. The  supreme  court  shall  have  jurisdiction  of  any  action  or
  proceeding  by  the  trustee on behalf of such bondholders. The venue of
  any such action or proceeding shall be laid in the county.
    5. Before declaring the  principal  of  bonds  due  and  payable,  the
  trustee   shall  first  give  thirty  days  notice  in  writing  to  the
  corporation.
    6. Any such trustee, whether or not the issue of bonds represented  by
  such  trustee has been declared due and payable, shall be entitled as of
  right to the appointment of any receiver of any part  or  parts  of  the
  project, the revenues of which are pledged for the security of the bonds
  of  such  issue, and such receiver may enter and take possession of such
  part or parts of the project and, subject to  any  pledge  or  agreement
  with  the holders of such bonds, shall take possession of all monies and
  other property derived from such  part  or  parts  of  the  project  and
  proceed  with  any  construction  thereon  or  the  acquisition  of  any
  property, real or personal, in connection therewith that the corporation
  is under obligation to do, and to operate, maintain and reconstruct such
  part or parts of the  project  and  collect  and  receive  all  revenues
  thereafter  arising  therefrom  subject  to any pledge or agreement with

  bondholders relating thereto and perform the public duties and carry out
  the agreements and obligations of the corporation under the direction of
  the court.