§ 3243. Remedies of bondholders and noteholders. 1. Subject to the
provisions of section three thousand two hundred thirty-six of this
title, in the event that the corporation shall default in the payment of
principal of or interest on or sinking fund payment on any issue of
bonds or notes after the same shall become due, whether at maturity or
upon call for redemption, or in the event that the corporation or the
state 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 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
bonds or notes for the purposes herein provided.

2. Such trustee, or any trustee appointed under section three thousand
two hundred thirty-six of this title, 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) by suit, action or proceeding in accordance with the civil
practice law and rules, enforce all rights of the bondholders or
noteholders, including the right to require the corporation to carry out
any agreement with such holders and to perform its duties under this
title;

(b) bring suit upon such bonds and notes;

(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 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; and

(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 annul such declaration and its consequences provided,
however, that nothing herein shall preclude the corporation from
agreeing that consent of the provider of a bond or note facility is
required for an acceleration of related bonds or notes in the event of a
default other than a failure to pay principal of or interest on the
bonds or notes when due.

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

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