67-6420. REMEDIES OF BOND AND NOTE HOLDERS. (a) In the event that the authority shall default in the payment of principal of or interest on any issue of notes and 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 (30) days, or in the event that the authority shall fail or refuse to comply with the provisions of this act, or shall default in any agreement made with the holders of any issue of notes or bonds, the holders of twenty-five per cent (25%) in aggregate principal amount of the notes or bonds of such issue then outstanding, may appoint a trustee to represent the holders of such notes or bonds for the purposes herein provided.
(b) Such trustee may, and upon written request of the holders of twenty-five per cent (25%) in principal amount of such notes or bonds then outstanding shall, in his or its own name:
(1) by suit, action or proceeding enforce all rights of the noteholders or bondholders, including the right to require the authority to carry out any agreements with such holders and to perform its duties under this act;
(2) bring suit upon such notes or bonds;
(3) by action or suit, require the authority to account as if it were the trustee of an express trust for the holders of such notes or bonds;
(4) by action or suit, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such notes or bonds;
(5) declare all such notes or bonds due and payable, and if all defaults shall be made good, then, with the consent of the holders of twenty-five per cent (25%) of the principal amount of such notes or bonds then outstanding, annul such declaration and its consequences.
(c) Before declaring the principal of notes or bonds due and payable, the trustee shall first give thirty (30) days’ notice in writing to the authority.
History:
[67-6420, added 1974, ch. 111, sec. 20, p. 1263.]