§ 23-20. Remedies of holders of bonds; powers of trustee representing holders.
(a) The provisions of this section shall be applicable to an issue of bondsonly if the resolution or resolutions authorizing such bonds shall provide insubstance that the holders of such bonds are entitled to all the benefits ofand subject to the provisions of this section.
(b) In the event that any institution shall default in the payment ofprincipal of or interest on any series of its bonds after the same shallbecome due, whether at maturity or upon call for redemption, and such defaultshall continue for a period of thirty days, or in the event that suchinstitution shall fail or refuse to comply with the provisions of thischapter, or shall default in any agreement made with the holders of its bondsof any series, the holders of twenty-five per centum in aggregate principalamount of the bonds of such series then outstanding, by instrument orinstruments filed with the Governor and proved or acknowledged in the samemanner as a deed to be recorded, may appoint a trustee to represent theholders of such series for the purposes herein provided.
(c) Such trustee may, and upon written request of the holders of twenty-fiveper centum in principal amount of the bonds of such series then outstandingshall, in his or its own name:
(1) By mandamus or other suit, action or proceeding at law or in equityenforce all rights of the holders of bonds of such series, including theright to require such institution and its board to collect fees, rents,charges or other revenues adequate to carry out any agreement as to, orpledge of, such revenues, and to require such institution and board to carryout any other agreements with the holders of the bonds of such series and toperform it and their duties under this chapter;
(2) Bring suit upon such bonds;
(3) By action or suit in equity, require such institution to account as if itwere the trustees of an express trust for the holders of such bonds;
(4) By action or suit in equity, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of such bonds.
(d) If the resolution or resolutions which authorize any bonds contain theprovision authorized by subsection (a) of this section and further provide insubstance that any trustee appointed by the holders of the bonds pursuant tothis section shall have the powers provided by this subsection, then any suchtrustee, whether or not all such bonds have been declared due and payable,shall be entitled as of right to the appointment of a receiver who may enterand take possession of any property of the institution any of the revenuesfrom which are pledged for the security of the bonds the holders of which arerepresented by such trustee and operate and maintain the same and collect andreceive all fees, rents, charges and other revenues thereafter arisingtherefrom in the same manner as the institution itself might do and shalldeposit all such moneys in a separate account and apply the same in suchmanner as the court shall direct. In any suit, action or proceeding by thetrustee the fees, counsel fees and expenses of the trustee and of thereceiver, if any, shall constitute taxable costs and disbursements and allcosts and disbursements allowed by the court shall be a first charge on anyfees, rents, charges and other revenues of the institution pledged for thesecurity of the bonds.
(e) Such trustee shall, in addition to the foregoing, have and possess all ofthe powers necessary or appropriate for the exercise of any functionsspecifically set forth herein or incident to the general representation ofthe holders of bonds represented by such trustee in the enforcement andprotection of their rights.
§ 23-20. Remedies of holders of bonds; powers of trustee representing holders.
(a) The provisions of this section shall be applicable to an issue of bondsonly if the resolution or resolutions authorizing such bonds shall provide insubstance that the holders of such bonds are entitled to all the benefits ofand subject to the provisions of this section.
(b) In the event that any institution shall default in the payment ofprincipal of or interest on any series of its bonds after the same shallbecome due, whether at maturity or upon call for redemption, and such defaultshall continue for a period of thirty days, or in the event that suchinstitution shall fail or refuse to comply with the provisions of thischapter, or shall default in any agreement made with the holders of its bondsof any series, the holders of twenty-five per centum in aggregate principalamount of the bonds of such series then outstanding, by instrument orinstruments filed with the Governor and proved or acknowledged in the samemanner as a deed to be recorded, may appoint a trustee to represent theholders of such series for the purposes herein provided.
(c) Such trustee may, and upon written request of the holders of twenty-fiveper centum in principal amount of the bonds of such series then outstandingshall, in his or its own name:
(1) By mandamus or other suit, action or proceeding at law or in equityenforce all rights of the holders of bonds of such series, including theright to require such institution and its board to collect fees, rents,charges or other revenues adequate to carry out any agreement as to, orpledge of, such revenues, and to require such institution and board to carryout any other agreements with the holders of the bonds of such series and toperform it and their duties under this chapter;
(2) Bring suit upon such bonds;
(3) By action or suit in equity, require such institution to account as if itwere the trustees of an express trust for the holders of such bonds;
(4) By action or suit in equity, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of such bonds.
(d) If the resolution or resolutions which authorize any bonds contain theprovision authorized by subsection (a) of this section and further provide insubstance that any trustee appointed by the holders of the bonds pursuant tothis section shall have the powers provided by this subsection, then any suchtrustee, whether or not all such bonds have been declared due and payable,shall be entitled as of right to the appointment of a receiver who may enterand take possession of any property of the institution any of the revenuesfrom which are pledged for the security of the bonds the holders of which arerepresented by such trustee and operate and maintain the same and collect andreceive all fees, rents, charges and other revenues thereafter arisingtherefrom in the same manner as the institution itself might do and shalldeposit all such moneys in a separate account and apply the same in suchmanner as the court shall direct. In any suit, action or proceeding by thetrustee the fees, counsel fees and expenses of the trustee and of thereceiver, if any, shall constitute taxable costs and disbursements and allcosts and disbursements allowed by the court shall be a first charge on anyfees, rents, charges and other revenues of the institution pledged for thesecurity of the bonds.
(e) Such trustee shall, in addition to the foregoing, have and possess all ofthe powers necessary or appropriate for the exercise of any functionsspecifically set forth herein or incident to the general representation ofthe holders of bonds represented by such trustee in the enforcement andprotection of their rights.
§ 23-20. Remedies of holders of bonds; powers of trustee representing holders.
(a) The provisions of this section shall be applicable to an issue of bondsonly if the resolution or resolutions authorizing such bonds shall provide insubstance that the holders of such bonds are entitled to all the benefits ofand subject to the provisions of this section.
(b) In the event that any institution shall default in the payment ofprincipal of or interest on any series of its bonds after the same shallbecome due, whether at maturity or upon call for redemption, and such defaultshall continue for a period of thirty days, or in the event that suchinstitution shall fail or refuse to comply with the provisions of thischapter, or shall default in any agreement made with the holders of its bondsof any series, the holders of twenty-five per centum in aggregate principalamount of the bonds of such series then outstanding, by instrument orinstruments filed with the Governor and proved or acknowledged in the samemanner as a deed to be recorded, may appoint a trustee to represent theholders of such series for the purposes herein provided.
(c) Such trustee may, and upon written request of the holders of twenty-fiveper centum in principal amount of the bonds of such series then outstandingshall, in his or its own name:
(1) By mandamus or other suit, action or proceeding at law or in equityenforce all rights of the holders of bonds of such series, including theright to require such institution and its board to collect fees, rents,charges or other revenues adequate to carry out any agreement as to, orpledge of, such revenues, and to require such institution and board to carryout any other agreements with the holders of the bonds of such series and toperform it and their duties under this chapter;
(2) Bring suit upon such bonds;
(3) By action or suit in equity, require such institution to account as if itwere the trustees of an express trust for the holders of such bonds;
(4) By action or suit in equity, enjoin any acts or things which may beunlawful or in violation of the rights of the holders of such bonds.
(d) If the resolution or resolutions which authorize any bonds contain theprovision authorized by subsection (a) of this section and further provide insubstance that any trustee appointed by the holders of the bonds pursuant tothis section shall have the powers provided by this subsection, then any suchtrustee, whether or not all such bonds have been declared due and payable,shall be entitled as of right to the appointment of a receiver who may enterand take possession of any property of the institution any of the revenuesfrom which are pledged for the security of the bonds the holders of which arerepresented by such trustee and operate and maintain the same and collect andreceive all fees, rents, charges and other revenues thereafter arisingtherefrom in the same manner as the institution itself might do and shalldeposit all such moneys in a separate account and apply the same in suchmanner as the court shall direct. In any suit, action or proceeding by thetrustee the fees, counsel fees and expenses of the trustee and of thereceiver, if any, shall constitute taxable costs and disbursements and allcosts and disbursements allowed by the court shall be a first charge on anyfees, rents, charges and other revenues of the institution pledged for thesecurity of the bonds.
(e) Such trustee shall, in addition to the foregoing, have and possess all ofthe powers necessary or appropriate for the exercise of any functionsspecifically set forth herein or incident to the general representation ofthe holders of bonds represented by such trustee in the enforcement andprotection of their rights.
