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Session Laws, 1959
Volume 642, Page 689   View pdf image (33K)
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J. MILLARD TAWES, GOVERNOR                           689

(b)   bring suit upon the bonds;

(c)   by action or suit in equity, require the Authority to account
as if it were the trustee of an express trust for the bondholders;

(d)   by action or suit in equity, enjoin any acts or things which
may be unlawful or in violation of the rights of the bondholders;

(e)   by notice in writing to the Authority, declare all bonds due
and payable, and if all defaults be made good, then with the consent
of the holders of twenty-five per centum (25%) (or such other per-
centage as may be specified in any deed of trust, indenture or other
agreement aforesaid) of the principal amount of the bonds then out-
standing, to annul such declaration and its consequences.

Any trustee, whether appointed as aforesaid or acting under a
deed of trust, indenture or other agreement and whether or not all
bonds have been declared due and payable, shall be entitled as of
right to the appointment of a receiver, who may (to the same extent
that the Authority itself could so do) enter and take possession of
the facilities of the Authority, or any parts thereof, the tolls, rev-
enues, rentals or receipts from which are or may be applicable to
the payment of the bonds so in default, and operate and maintain
the same, and collect and receive all rentals and other revenues
thereafter arising therefrom in the same manner as the Authority
might do, and shall deposit all such moneys in a separate account,
and apply the same in such manner as the court shall direct. In any
suit, action or proceeding by the trustees, the fees, counsel fees, and
expenses of the trustee and of the receiver, if any, and all costs and
disbursements allowed by the court, shall be a first charge on any
revenues and receipts derived from the facilities of the Authority,
the revenues or receipts from which are or may be applicable to the
payment of the bonds so in default. Said trustee shall, in addition
to the foregoing, have and possess all of the powers necessary or
appropriate for the exercise of any functions specifically set forth
herein or incident to the general representation of the bondholders
in the enforcement and protection of their rights.

In addition to all other rights and all other remedies, any holder
of bonds of the Authority shall have the right by mandamus or other
suit, action, or proceeding at law or in equity to enforce his rights
against the Authority, including the right to require the Authority
to collect tolls, fees, rentals and other charges adequate to carry out
any agreement as to or pledge of such tolls, fees, rentals, or other
charges, or income, revenues and receipts, and to require the Author-
ity to carry out any of its covenants and agreements with the bond-
holders, and to perform its and their duties under this Act; provided,
however, that nothing in this section or any other section of this
Act shall authorize any receiver appointed pursuant to this Act
for the purpose of operating and maintaining any project or projects
of the Authority, to sell, assign, mortgage or otherwise dispose of,
any of the assets of whatever kind and character belonging to the
Authority £.] , except where such sale, assignment or mortgage is
expressly permitted by the revenue bonds of that particular project.
It is the intention of this Act to limit the powers of such receiver
to the operation and maintenance of the facilities of the Authority
as the court shall direct, and no holder of bonds of the Authority,
nor any trustee, shall ever have the right in any suit, action or pro-
ceedings at law or in equity to compel a receiver, nor shall any

 

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Session Laws, 1959
Volume 642, Page 689   View pdf image (33K)
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