§ 2786. Remedies of bondholders. Subject to any resolution or
resolutions adopted pursuant to this title:

1. In the event that the authority shall default in the payment of
principal or of interest on any issue of 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 days, or in the event that
the authority 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, the holders of twenty-five percent in aggregate
principal amount of the bonds 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 authority 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 for the purpose herein
provided.

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

(a) by action or proceeding in accordance with the civil practice law
and rules, enforce all rights of the bondholders, including the right to
require the authority to collect rents, rates, fees and charges adequate
to carry out any agreement as to, or pledge of, such rents, rates, fees
and charges and to require the authority to carry out any other
agreements with the holders of such bonds to perform its duties under
this title;

(b) bring an action or proceeding upon such bonds;

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

(d) by action or proceeding, enjoin any acts or things which may be
unlawful or in violation of the rights of the holders of such bonds; and

(e) declare all such bonds due and payable, and if all defaults shall
be made good, then with the consent of the holders of the twenty-five
per centum of the principal amount of such 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 bond holders in the enforcement and protection of
their rights.

4. The supreme court shall have jurisdiction of any action or
proceeding by the trustee on behalf of such bond holders. The venue of
any such action or proceeding shall be laid in the county.

5. Before declaring the principal of bonds due and payable the trustee
shall first give thirty days notice in writing to the authority.

6. Any such trustee, whether or not the issue of bonds represented by
such trustee has been declared due and payable, shall be entitled as of
right to the appointment of any receiver of any part or parts of the
project, the revenues of which are pledged for the security of bonds of
such issue, and such receiver may enter and take possession of such part
or parts of the project and, subject to any pledge or agreement with the
holders of such bonds, shall take possession of all monies and other
property derived from such part or parts of the project and proceed with
any construction thereon or the acquisition of any property, real or
personal, in connection therewith that the authority is under obligation
to do, and operate, maintain and reconstruct such part or parts of the
project and collect and receive all revenues thereafter arising there
from subject to any pledge or agreement with bond holders relating
thereto and perform the public duties and carry out the agreements and
obligations of the authority under the direction of the court.

In any suit, action or proceeding by the trustee, the fees, council
fees and expenses of the trustee and of the receiver, if any, shall
constitute taxable disbursements and all costs and disbursements allowed
by the court shall be a first charge on any revenues derived from the
project.