Section 130-F. Actions for accounting by minority groups; expenses thereof  


Latest version.
  • In any special proceeding or action brought  by  or  on  behalf  of  any
      minority  bondholder  or group of minority bondholders, or any person or
      group of persons not holding at least fifty-one per centum of the  stock
      or  bonds  of  the mortgage issue, but claiming an interest in the trust
      property,  for  a  judicial  accounting,  the  court   may   take   into
      consideration the information as to income and disbursements theretofore
      furnished to bondholders, the merits and good faith of the proceeding or
      action,  and whether the accounting will be of value to the bondholders,
      as well as the cost of such accounting, and the court may  require  that
      the  petitioner  or plaintiff furnish a surety company bond to indemnify
      the estate against the expenses of the accounting, including fees of the
      referee to take the accounting, stenographic fees, and the  expenses  of
      the  trustee,  and  may  direct  that,  if  it  should  appear  that the
      accounting result in any practical benefit to all the  bondholders,  the
      court should then, in its discretion, release the indemnity, and that if
      no  such  benefit  accrue,  the petitioner or plaintiff and his attorney
      should receive no compensation, and the trust fund should be  reimbursed
      for the expenses saddled upon it by reason thereof.