§ 1294. Remedies of noteholders and bondholders. 1. In the event that
the corporation shall default in the payment of principal of or interest
on any issue of notes or bonds after the same shall become due, whether
on any sinking fund payment date, at maturity or upon call for
redemption, and such default shall continue for a period of thirty days,
or in the event that the corporation shall fail or refuse to comply with
the provisions of this title or shall default in any agreement made with
the holders of any issue of notes or bonds, the holders of twenty-five
per centum in aggregate principal amount of the notes or bonds of such
issue then outstanding, by instrument or instruments filed in the office
of the clerk of the county of Albany and proved or acknowledged in the
same manner as a deed to be recorded, may appoint a trustee to represent
the holders of such notes or bonds for the purposes herein provided.

2. Such trustee may, and upon written request of the holders of
twenty-five per centum in principal amount of such notes or bonds then
outstanding shall, in his or its own name;

(a) by suit, action or proceeding in accordance with the civil
practice law and rules, enforce all rights of the noteholders or
bondholders, including the right to require the corporation to collect
rentals, rates, charges and other fees and to collect interest and
amortization payments on municipal bonds and notes and bonds and notes
of any state agency held by it adequate to carry out any agreement as
to, or pledge of, such rentals, rates, charges and other fees and of
such interest and amortization payments, and to require the corporation
to carry out any other agreements with the holders of such notes or
bonds and to perform its duties under this title;

(b) bring suit upon such notes or bonds;

(c) by action or suit, require the corporation to account as if it
were the trustee of an express trust for the holders of such notes or
bonds;

(d) 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;

(e) 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 centum of the principal amount of such notes or bonds
then outstanding, to annul such declaration and its consequences.

3. Such 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 bondholders or noteholders in the enforcement and
protection of their rights.

4. The supreme court shall have jurisdiction of any suit, action or
proceeding by the trustee on behalf of such noteholders or bondholders.
The venue of any such suit, action or proceeding shall be laid in the
county of Albany.

5. Before declaring the principal of notes or bonds due and payable,
the trustee shall first give thirty days' notice in writing to the
governor, to the corporation, to the comptroller and to the attorney
general of the state.