State Codes and Statutes

Statutes > New-jersey > Title-40 > Section-40-66a > 40-66a-15

40:66A-15.  Default in payment of bonds;  trustee;  appointment; powers; receiver
    In the event that there shall be a default in the payment of principal of or  interest on any 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 incinerator authority shall fail or refuse to comply with the provisions of this act or shall fail or refuse to carry out and perform the terms of any contract with the holders of any of such  bonds, and such failure or refusal shall continue for a period of thirty days  after written notice to the incinerator authority of its existence and nature,  the holders of twenty-five per centum (25%) in aggregate principal amount of  the bonds of such series then outstanding, by instruments or instrument filed  in the office of the Secretary of State and proved and acknowledged in the same  manner as a deed to be recorded, may appoint a trustee to represent the holders  of the bonds of such series for the purposes in this section, and to have the  powers provided in this section.

    (a) Such trustee may and upon written request of the holders of twenty-five  per centum (25%) in aggregate principal amount of the bonds of such series then  outstanding shall, in his or its own name:

    (1) By an action or proceeding in a court of competent jurisdiction, enforce  all rights of the holders of such bonds, including the right to require the  incinerator authority to charge and collect service charges adequate to carry  out any contract as to, or pledge of, system revenues, and to require the  incinerator authority to carry out and perform the terms of any contract with  the holders of such bonds or its duties under this act;

    (2) Bring an action upon all or any part of such bonds or interest coupons or claims appurtenant thereto;

    (3) By an action require the incinerator authority to account as if it were  the trustee of an express trust for the holders of such bonds;

    (4) By an action enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such bonds;  or

    (5) Declare all such bonds due and payable, whether or not in advance of maturity, upon thirty days' prior notice in writing to the incinerator authority and, if all defaults shall be made good, then with the consent of the  holders of twenty-five per centum (25%) of the principal amount of such bonds  then outstanding, annul such declaration and its consequences.

    (b) 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.

    (c) In any action or proceeding by such trustee, the fees, counsel fees and  expenses of the trustee and of the receiver, if any, appointed pursuant to this  act, may be allowed by the court as taxable costs and disbursements or  otherwise, when so allowed, shall be a first charge upon any service charges  and system revenues of the incinerator authority pledged for the payment or  security of bonds of such series.

    (d) Such trustee, upon such default referred to in this section, whether or  not all of the bonds of such series shall have been declared due and payable,  shall be entitled as of right to the appointment of a receiver of the garbage  disposal system, and such receiver may enter upon and take possession of all  moneys and other property derived from or applicable to the acquisition,  construction, operation, maintenance or reconstruction of the garbage disposal  system and proceed with such acquisition, construction, operation, maintenance  or reconstruction which the incinerator authority is under any obligation to  do, and operate, maintain and reconstruct the garbage disposal system and fix,  charge, collect, enforce and receive the service charges and all system  revenues thereafter arising subject to any pledge thereof or contract with the  holders of such bonds relating thereto and perform the public duties and carry  out the contracts and obligations of the incinerator authority in the same  manner as the incinerator authority itself might do and under the direction of  the court.

     L.1948, c. 348, p. 1369, s. 15.  Amended by L.1953, c. 37, p. 727, s. 233, eff. March 19, 1953.