Section 2053-K. Remedies of bondholders

Subject  to  any resolution or
  resolutions  adopted  pursuant  to  subdivision  three  of  section  two
  thousand fifty-three-j 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  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,  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
  and  proved  or  acknowledged in the same manner as 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 his or 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 authority 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  authority  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 authority 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 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
  authority.
    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
  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  holders  of  such  bonds,  shall take possession of all moneys 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  authority
  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 thereof or  agreement

  with  bondholders  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 project.
    7. The county is authorized to pledge to and agree with the holders of
  the bonds that the county will not limit or  impair  the  rights  hereby
  vested  in  the  authority  to  purchase,  construct, maintain, operate,
  repair,  improve,  increase,  enlarge,  extend,  reconstruct,  renovate,
  rehabilitate  or  dispose  of any project, or any part or parts thereof,
  for which bonds or notes of the authority shall  have  been  issued,  to
  establish  and  collect rates, rents, fees and other charges referred to
  in this title and to fulfill the terms of any agreements made  with  the
  holders  of  the bonds or notes or with any public corporation or person
  with reference to such project or part thereof, or in any way impair the
  rights and remedies of the bondholders, until the bonds,  together  with
  interest  thereon,  with interest on any unpaid installments of interest
  and all costs and expenses in connection with any action  or  proceeding
  by or on behalf of the bondholders are fully met and discharged.