§ 3408. Remedies of bondholders. Subject to any resolution or
resolutions adopted pursuant to this title:

1. In the event that the corporation shall default in the payment of
principal of or 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 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 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 corporation 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 corporation 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 corporation 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 corporation 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 bondholders 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 bondholders. 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
corporation.

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 the 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 corporation
is under obligation to do, and to operate, maintain and reconstruct such
part or parts of the project and collect and receive all revenues
thereafter arising therefrom subject to any pledge or agreement with
bondholders relating thereto and perform the public duties and carry out
the agreements and obligations of the corporation under the direction of
the court.