Section 1040. Remedies of bondholders

1. If, and to the extent, and in
  the events, provided  in  the  resolution  authorizing  the  bonds,  the
  holders  of  not  less  than  twenty-five  per  centum  in the aggregate
  principal amount of bonds at any time outstanding, may by instrument  or
  instruments filed in the office of the clerk of the county of Albany and
  proved  or  acknowledged  in  the  same manner as a deed to be recorded,
  appoint a trustee to represent all  the  bondholders  for  the  purposes
  hereafter  provided, which trustee or successor trustee may, however, be
  removed or a new trustee appointed at any time by  the  holders  of  not
  less  than  fifty-one  per centum of such bonds by similar instrument or
  instruments so filed, and so proved or  acknowledged.  Subject  to  such
  authorizing  resolution,  such  trustee may, and upon written request of
  the holders of not less than twenty-five per centum in principal  amount
  of the bonds then outstanding shall, in his or its name:
    (a)  by  suit,  action or special proceeding enforce all rights of the
  bondholders, including the  right  to  require  the  authority  and  the
  members  or officers thereof to collect rates and other revenue adequate
  to carry out any agreements as to, or pledge of, such rates and revenue,
  and to require the authority and members or officers  thereof  to  carry
  out  any  other  agreements  with the bondholders and to perform its and
  their duties under this title;
    (b) bring suit upon the bonds;
    (c) by action or suit in equity, require the authority to  account  as
  if it were the trustee of an express trust for the bondholders;
    (d)  by  action or suit in equity, enjoin any acts or things which may
  be unlawful or in violation of the rights of the bondholders;
    (e) after thirty days' notice in writing to the authority and if,  and
  in  the  events,  specified in the resolution, declare all bonds due and
  payable, and  thereafter  if,  and  in  the  events,  specified  in  the
  resolution, annul such declaration and its consequences.
    2.  The  supreme  court shall have jurisdiction of any suit, action or
  proceeding by the trustee on behalf of the  bondholders  and  the  venue
  thereof shall be laid in Albany county.
    3. Subject to the authorizing resolution, any such trustee, whether or
  not  all  bonds have been declared due and payable, shall be entitled as
  of right to the appointment  of  a  receiver  who  may  enter  and  take
  possession  of  the  properties  of  the  authority or any part or parts
  thereof and operate and maintain the same and collect  and  receive  all
  rates,  charges  and  other  revenues  thereafter  arising therefrom and
  exercise such other powers of  the  authority  as  the  court  may  deem
  advisable  in the same manner as the authority itself might do and shall
  deposit all such moneys in a separate account and apply the same in such
  manner as the court shall direct. 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 rates, charges and other revenues derived from such properties.
    * NB Terminated July 1, 1963