§ 2440. Remedies of bondholders and noteholders. (1) In the event that
the agency shall default in the payment of principal or of interest on
any issue of bonds or notes after the same shall become due, whether at
maturity or upon call for redemption, and such default shall continue
for a period of thirty days, or in the event that the agency 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 bonds or notes,
the holders of twenty-five per centum in aggregate principal amount of
the bonds or notes of such issue then outstanding, by instrument or
instruments filed in the office of the clerk of the county in which the
principal office of the agency is located, and proved or acknowledged in
the same manner as a deed to be recorded, may appoint a trustee to
represent the holders of such bonds or notes 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 bonds or notes then
outstanding shall, in his or its own name.

(a) enforce all rights of the bondholders or noteholders, including
the right to require the agency to collect interest and principal
payments on the bonds held by it adequate to carry out any agreement as
to, or pledge of, such interest and principal payments, and to require
the agency to carry out any other agreements with the holders of such
bonds or notes and to perform its duties under this title:

(b) bring suit upon such bonds or notes:

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

(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 bonds or notes:

(e) declare all such bonds or notes 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 bonds or notes
then outstanding, to annul such declaration and its consequences.

(3) Such 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 herein or incident to the general
representation of bondholders in the enforcement and protection of their
rights.

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

(5) The supreme court shall have jurisdiction of any suit, action or
proceeding by the trustee on behalf of bondholders or noteholders. The
venue of any such suit, action, or proceeding shall be laid in the
county in which the principal office of the agency is located.

(6) The remedies granted by this section shall not apply to tax lien
collateralized securities. The remedies available to the holders of such
securities shall be expressly limited to those set forth in the contract
with the owners of such securities.