§ 42-55-17 Remedies of bondholders andnote holders. – (a) In the event that the corporation shall default in the payment of principalof or interest on any bonds or notes issued under this chapter after they shallbecome due, whether at maturity or upon call for redemption, and that defaultshall continue for a period of thirty (30) days, or in the event that thecorporation shall fail or refuse to comply with the provisions of this chapter,or shall default in any agreement made with the holders of an issue of bonds ornotes of the corporation, the holders of twenty-five percent (25%) in aggregateprincipal amount of the bonds or notes of the issue then outstanding, byinstrument or instruments filed in the office of the secretary of state andproved or acknowledged in the same manner as a deed to be recorded, may appointa trustee to represent the holders of the bonds or notes for the purposesprovided in this section.
(b) The trustee may, and upon written request of the holdersof twenty-five percent (25%) in principal amount of the bonds or notes thenoutstanding shall, in his, her or its own name:
(1) Enforce all rights of the bondholders or note holders,including the right to require the corporation to collect interest andamortization payments on the mortgages held by it adequate to carry out anyagreement as to, or pledge of, the interest and amortization payments, and torequire the corporation to carry out any other agreements with the holders ofthe bonds or notes and to perform its duties under this chapter;
(2) Enforce all rights of the bondholders or note holders,including the right to collect and enforce the payment of principal of andinterest due or becoming due on loans to mortgage lenders and collect andenforce any collateral securing the loans or sell that collateral, so as tocarry out any contract as to, or pledge of, revenues, and to require thecorporation to carry out and perform the terms of any contract with the holdersof the bonds or notes or its duties under this chapter;
(3) Bring suit upon all or any part of the bonds or notes;
(4) By action or suit, require the corporation to account asif it were the trustee of an express trust for the holders of the bonds ornotes;
(5) By action or suit, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of the bonds or notes;
(6) Declare all bonds or notes due and payable and if alldefaults shall be made good then with the consent of the holders of twenty-fivepercent (25%) of the principal amount of the bonds or notes then outstanding,annul the declaration and its consequences.
(c) The trustee shall in addition to the foregoing have andpossess all of the powers necessary or appropriate for the exercise of anyfunctions specifically set forth herein or incident to the generalrepresentation of bondholders or note holders in the enforcement and protectionof their rights.
(d) Before declaring the principal of bonds or notes due andpayable, the trustee shall first give thirty (30) days' notice in writing tothe governor, to the corporation, and to the attorney general of the state.
(e) The superior court of Providence County shall havejurisdiction of any suit, action, or proceeding by the trustee on behalf ofbondholders or note holders.
§ 42-55-17 Remedies of bondholders andnote holders. – (a) In the event that the corporation shall default in the payment of principalof or interest on any bonds or notes issued under this chapter after they shallbecome due, whether at maturity or upon call for redemption, and that defaultshall continue for a period of thirty (30) days, or in the event that thecorporation shall fail or refuse to comply with the provisions of this chapter,or shall default in any agreement made with the holders of an issue of bonds ornotes of the corporation, the holders of twenty-five percent (25%) in aggregateprincipal amount of the bonds or notes of the issue then outstanding, byinstrument or instruments filed in the office of the secretary of state andproved or acknowledged in the same manner as a deed to be recorded, may appointa trustee to represent the holders of the bonds or notes for the purposesprovided in this section.
(b) The trustee may, and upon written request of the holdersof twenty-five percent (25%) in principal amount of the bonds or notes thenoutstanding shall, in his, her or its own name:
(1) Enforce all rights of the bondholders or note holders,including the right to require the corporation to collect interest andamortization payments on the mortgages held by it adequate to carry out anyagreement as to, or pledge of, the interest and amortization payments, and torequire the corporation to carry out any other agreements with the holders ofthe bonds or notes and to perform its duties under this chapter;
(2) Enforce all rights of the bondholders or note holders,including the right to collect and enforce the payment of principal of andinterest due or becoming due on loans to mortgage lenders and collect andenforce any collateral securing the loans or sell that collateral, so as tocarry out any contract as to, or pledge of, revenues, and to require thecorporation to carry out and perform the terms of any contract with the holdersof the bonds or notes or its duties under this chapter;
(3) Bring suit upon all or any part of the bonds or notes;
(4) By action or suit, require the corporation to account asif it were the trustee of an express trust for the holders of the bonds ornotes;
(5) By action or suit, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of the bonds or notes;
(6) Declare all bonds or notes due and payable and if alldefaults shall be made good then with the consent of the holders of twenty-fivepercent (25%) of the principal amount of the bonds or notes then outstanding,annul the declaration and its consequences.
(c) The trustee shall in addition to the foregoing have andpossess all of the powers necessary or appropriate for the exercise of anyfunctions specifically set forth herein or incident to the generalrepresentation of bondholders or note holders in the enforcement and protectionof their rights.
(d) Before declaring the principal of bonds or notes due andpayable, the trustee shall first give thirty (30) days' notice in writing tothe governor, to the corporation, and to the attorney general of the state.
(e) The superior court of Providence County shall havejurisdiction of any suit, action, or proceeding by the trustee on behalf ofbondholders or note holders.
§ 42-55-17 Remedies of bondholders andnote holders. – (a) In the event that the corporation shall default in the payment of principalof or interest on any bonds or notes issued under this chapter after they shallbecome due, whether at maturity or upon call for redemption, and that defaultshall continue for a period of thirty (30) days, or in the event that thecorporation shall fail or refuse to comply with the provisions of this chapter,or shall default in any agreement made with the holders of an issue of bonds ornotes of the corporation, the holders of twenty-five percent (25%) in aggregateprincipal amount of the bonds or notes of the issue then outstanding, byinstrument or instruments filed in the office of the secretary of state andproved or acknowledged in the same manner as a deed to be recorded, may appointa trustee to represent the holders of the bonds or notes for the purposesprovided in this section.
(b) The trustee may, and upon written request of the holdersof twenty-five percent (25%) in principal amount of the bonds or notes thenoutstanding shall, in his, her or its own name:
(1) Enforce all rights of the bondholders or note holders,including the right to require the corporation to collect interest andamortization payments on the mortgages held by it adequate to carry out anyagreement as to, or pledge of, the interest and amortization payments, and torequire the corporation to carry out any other agreements with the holders ofthe bonds or notes and to perform its duties under this chapter;
(2) Enforce all rights of the bondholders or note holders,including the right to collect and enforce the payment of principal of andinterest due or becoming due on loans to mortgage lenders and collect andenforce any collateral securing the loans or sell that collateral, so as tocarry out any contract as to, or pledge of, revenues, and to require thecorporation to carry out and perform the terms of any contract with the holdersof the bonds or notes or its duties under this chapter;
(3) Bring suit upon all or any part of the bonds or notes;
(4) By action or suit, require the corporation to account asif it were the trustee of an express trust for the holders of the bonds ornotes;
(5) By action or suit, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of the bonds or notes;
(6) Declare all bonds or notes due and payable and if alldefaults shall be made good then with the consent of the holders of twenty-fivepercent (25%) of the principal amount of the bonds or notes then outstanding,annul the declaration and its consequences.
(c) The trustee shall in addition to the foregoing have andpossess all of the powers necessary or appropriate for the exercise of anyfunctions specifically set forth herein or incident to the generalrepresentation of bondholders or note holders in the enforcement and protectionof their rights.
(d) Before declaring the principal of bonds or notes due andpayable, the trustee shall first give thirty (30) days' notice in writing tothe governor, to the corporation, and to the attorney general of the state.
(e) The superior court of Providence County shall havejurisdiction of any suit, action, or proceeding by the trustee on behalf ofbondholders or note holders.
