40:37A-64 - Bond provisions
40:37A-64.Ā Bond provisions
(1) If the bond resolution of an authority authorizing or providing for theĀ issuance of a series of its bonds shall provide in substance that the holdersĀ of the bonds of such series shall be entitled to the benefits of this section,Ā then if there shall be a default in the payment of principal of or interest onĀ any bonds of such series after the same shall become due, whether at maturityĀ or upon call for redemption, and such default shall continue for a period of 30Ā days, or if the authority shall fail or refuse to comply with any of theĀ provisions of this act or shall fail or refuse to carry out and perform theĀ terms of any contract with the holders of any such bonds and such failure orĀ refusal shall continue for a period of 30 days after written notice to theĀ authority of its existence and nature, the holders of 25% in aggregateĀ principal amount of the bonds of such series then outstanding by instrument orĀ instruments filed in the office of the Secretary of State and proved orĀ acknowledged in the same manner as a deed to be recorded, may appoint a trusteeĀ to represent the holders of the bonds of such series for the purposes providedĀ in this section.
(2) Such trustee may, and upon written request of the holders of 25% in aggregate principal amount of the bonds of such series then outstanding shall, in his or its own name:
(a) By any action or proceeding, enforce all rights of the holders of such bonds, including the right to require the authority to charge and collect facility charges adequate to carry out any contract as to, or pledge of, facility revenues, and to require the authority to carry out and perform the terms of any contract with the holders of such bonds or its duties under this act;
(b) Bring an action upon all or any part of such bonds or interest coupons or claims appurtenant thereto;
(c) By action, require the authority to account as if it were the trustee ofĀ an express trust for the holders of such bonds;
(d) By action, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such bonds;Ā or
(e) Declare all such bonds due and payable, whether or not in advance of maturity, upon 30 days' prior notice in writing to the authority and, if all defaults shall be made good, then with the consent of the holders of 25% of theĀ principal amount of such bonds then outstanding, annul such declaration and itsĀ consequences.
(3) Such trustee shall, in addition to the foregoing, have and possess all of the powers necessary or appropriate for the exercise of the functions specifically set forth herein or incident to the general representation of the holders of bonds of such series in the enforcement and protection of their rights.
(4) In any action or proceeding by such trustee, the fees, counsel fees andĀ expenses of the trustee and of the receiver, if any, appointed pursuant to thisĀ act, shall, if allowed by the court, constitute taxable costs and disbursements, and all costs and disbursements, allowed by the court, shall be a first charge upon any facility charges and facility revenues of the authorityĀ pledged for the payment or security of bonds of such series.
L.1960, c. 183, p. 744, s. 21, eff. Jan. 18, 1961.
Ā
(1) If the bond resolution of an authority authorizing or providing for theĀ issuance of a series of its bonds shall provide in substance that the holdersĀ of the bonds of such series shall be entitled to the benefits of this section,Ā then if there shall be a default in the payment of principal of or interest onĀ any bonds of such series after the same shall become due, whether at maturityĀ or upon call for redemption, and such default shall continue for a period of 30Ā days, or if the authority shall fail or refuse to comply with any of theĀ provisions of this act or shall fail or refuse to carry out and perform theĀ terms of any contract with the holders of any such bonds and such failure orĀ refusal shall continue for a period of 30 days after written notice to theĀ authority of its existence and nature, the holders of 25% in aggregateĀ principal amount of the bonds of such series then outstanding by instrument orĀ instruments filed in the office of the Secretary of State and proved orĀ acknowledged in the same manner as a deed to be recorded, may appoint a trusteeĀ to represent the holders of the bonds of such series for the purposes providedĀ in this section.
(2) Such trustee may, and upon written request of the holders of 25% in aggregate principal amount of the bonds of such series then outstanding shall, in his or its own name:
(a) By any action or proceeding, enforce all rights of the holders of such bonds, including the right to require the authority to charge and collect facility charges adequate to carry out any contract as to, or pledge of, facility revenues, and to require the authority to carry out and perform the terms of any contract with the holders of such bonds or its duties under this act;
(b) Bring an action upon all or any part of such bonds or interest coupons or claims appurtenant thereto;
(c) By action, require the authority to account as if it were the trustee ofĀ an express trust for the holders of such bonds;
(d) By action, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such bonds;Ā or
(e) Declare all such bonds due and payable, whether or not in advance of maturity, upon 30 days' prior notice in writing to the authority and, if all defaults shall be made good, then with the consent of the holders of 25% of theĀ principal amount of such bonds then outstanding, annul such declaration and itsĀ consequences.
(3) Such trustee shall, in addition to the foregoing, have and possess all of the powers necessary or appropriate for the exercise of the functions specifically set forth herein or incident to the general representation of the holders of bonds of such series in the enforcement and protection of their rights.
(4) In any action or proceeding by such trustee, the fees, counsel fees andĀ expenses of the trustee and of the receiver, if any, appointed pursuant to thisĀ act, shall, if allowed by the court, constitute taxable costs and disbursements, and all costs and disbursements, allowed by the court, shall be a first charge upon any facility charges and facility revenues of the authorityĀ pledged for the payment or security of bonds of such series.
L.1960, c. 183, p. 744, s. 21, eff. Jan. 18, 1961.
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