§ 5034. Remedies of bondholders and noteholders
(a) In the event that the Authority defaults in the payment of principal or of interest
on any bonds or notes issued under this chapter after they become due, whether at
maturity or upon call for redemption, and the default continues for a period of 30
days, or in the event that the Authority fails or refuses to comply with the provisions
of this chapter, or defaults in any agreement made with the holders of an issue of
bonds or notes of the Authority, the holders of 25 percent in aggregate principal
amount of the bonds or notes of such issue then outstanding, by instrument or instruments
filed in the office of the Secretary of State and proved or acknowledged in the same
manner as a deed to be recorded, may appoint a trustee to represent the holders of
those bonds or notes for the purposes provided.
(b) That trustee may, and upon written request of the holders of 25 percent in principal
amount of the bonds or notes then outstanding shall, in his or her or its own name:
(1) enforce all rights of the bondholders or noteholders, including the right to require
the Authority to fix and collect rates, fees, and charges relating to projects or
other obligations held by it adequate to carry out any agreement as to, or pledge
of, the revenues of the Authority, and to require the Authority to carry out any other
agreements with the holders of the bonds or notes and to perform its duties under
this chapter;
(2) enforce all rights of the bondholders or noteholders, including the right to take
possession and control of the business and properties of the Authority, to operate
and maintain the same, to make any necessary repairs, renewals, and replacements to
them, and to fix, revise, and collect fees and charges, so as to carry out any contract
as to, or pledge of revenues, and to require the Authority to carry out and perform
the terms of any contract with the holders of 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 Authority to account as if it were the trustee of an
express trust for the holders of the bonds or notes;
(5) by action or suit, enjoin any acts or things that may be unlawful 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 all defaults shall be made good,
then with the consent of the holders of 25 percent of the principal amount of the
bonds or notes then outstanding to annul the declaration and its consequences.
(c) The trustee shall in addition to the foregoing have and possess all the powers necessary
or appropriate for the exercise of any functions specifically set forth in this chapter
or incident to the general representation of bondholders or noteholders in the enforcement
and protection of their rights.
(d) Before declaring the principal of bonds or notes due and payable, the trustee shall
first give 30 days’ notice in writing to the Governor, to the Authority, and to the
Attorney General of the State.
(e) The Superior Court shall have jurisdiction of any suit, action, or proceeding by the
trustee on behalf of bondholders or noteholders. (Added 1979, No. 78, § 3; amended 2023, No. 85 (Adj. Sess.), § 452, eff. July 1, 2024.)