Bonds: remedies of bondholders

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  • (a) Subject to any contractual limitations binding upon the holders of any issue of bonds, or trustees therefor, including but not limited to the restriction of the exercise of any remedy to a specified proportion or percentage of such holders, any holder of bonds, or trustee therefor, shall have the right and power, for the equal benefit and protection of all holders of bonds similarly situated—

    • (1) by mandamus or other suit, action, or proceeding at law or in equity to compel the Corporation and its Board, officers, agents, or employees to perform and carry out its and their duties and obligations under this chapter and its and their covenants and agreements with bondholders;

    • (2) by action or suit in equity to require the Corporation and the Board thereof to account as if they were the trustee for an express trust;

    • (3) by action or suit in equity to enjoin any acts or things which may be unlawful or in violation of the rights of the bondholders; and

    • (4) to bring suit upon the bonds.

  • (b) Subject to any agreements with bondholders, no remedy conferred by this chapter upon any holder of the bonds or any trustee therefor, is intended to be exclusive of any remedy, but each such remedy is cumulative and in addition to every remedy, and may be exercised without exhausting and without regard to any other remedy conferred by this chapter or by any other law. No waiver or any default or breach of duty or contract, whether by any holder of the bonds, or any trustee therefor, shall extend to or shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. No delay or omission of any bondholder or any trustee therefor to exercise any right or power accruing upon default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein. Every substantive right and every remedy, conferred upon the holder of the bonds, may be enforced and exercised from time to time as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and then discontinued or abandoned, or shall be determined adversely to the holder of the bonds, or any trustee therefor, then and in every such case the Corporation and such holder, or such trustee, shall be restored to their former positions and rights and remedies as if no such suit, action or proceeding had been brought or taken.


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