Section 2040-H. Remedies of bondholders and noteholders

Subject  to
  resolutions adopted pursuant to paragraph (j) of  subdivision  three  of
  section two thousand forty-g 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 or notes 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 authority 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  or  notes,  the holders of twenty-five percent in
  aggregate principal amount of the bonds or notes,  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 or notes for the purpose herein provided.
    2. Such trustee may, and  upon  written  request  of  the  holders  of
  twenty-five  percentum  in  principal  amount  of  such  bonds  or notes
  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 bondholders or
  noteholders, including the right to require  the  authority  to  collect
  rentals,  rates, fees and charges adequate to carry out any agreement as
  to, or pledge of such rentals, rates, charges  and  other  fees  and  to
  require the authority to carry out any other agreements with the holders
  of such bonds or notes to perform its duties under this title;
    (b) bring suit upon such bonds or notes;
    (c)  by action or suit, require the authority to account as if it were
  the trustee of an express trust for the holders of such bonds or notes;
    (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 bonds or notes;
    (e) declare all such bonds or  notes  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  bonds  or  notes
  then outstanding, to annul such declaration in 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 bondholders or  noteholders.
  The  venue  of  any such suit, action or proceeding shall be laid in the
  county of Suffolk.
    5. Before declaring the principal of bonds or notes due  and  payable,
  the  trustee  shall  first  give  thirty  days  notice in writing to the
  governing body and president.
    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 a receiver of  any  part  or  parts  of  the
  properties  the  revenues  of  which are pledged for the security of the
  bonds or notes of such issue  and  such  receiver  may  enter  and  take
  possession  of  such  part or parts of the properties and subject to any
  pledge or agreement with holders of bonds or notes shall take possession
  of all moneys and other property derived from such part or parts of  the
  properties  and proceed with any construction thereon or the acquisition
  of any property, real or personal  in  connection  therewith  which  the
  authority  is  under  obligation  to  do,  and  to operate, maintain and
  reconstruct such part or parts of the properties and collect and receive

  all revenues thereafter arising therefrom subject to any pledge  thereof
  or  agreement with bond or note holders relating thereto and perform the
  public duties and carry  out  the  agreements  and  obligations  of  the
  authority  under  the  direction  of  the  court. 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 revenues derived from the properties.