(a) In the event that the authority defaults in the payment of principal of or interest on any issue of notes or bonds after the notes or bonds become due, whether at maturity or upon call for redemption, and the default continues for a period of thirty (30) days, or in the event the authority fails or refuses to comply with this part, or defaults in any agreement made with the holders of any issue of notes or bonds, the holders of twenty-five percent (25%) in aggregate principal amount of the notes or bonds of the issue then outstanding, by instrument or instruments filed in the office of the comptroller of the treasury and approved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of the notes or bonds for the purposes provided in this part.
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Terms Used In Tennessee Code 49-3-1208

  • Authority: means the Tennessee state school bond authority created by §. See Tennessee Code 49-3-1202
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Trustee: A person or institution holding and administering property in trust.
  • written: includes printing, typewriting, engraving, lithography, and any other mode of representing words and letters. See Tennessee Code 1-3-105
(b) The trustee may, and upon written request of the holders of twenty-five percent (25%) in principal amount of the notes or bonds then outstanding shall, in the trustee’s own name:

(1) By suit, action or proceeding at law or in equity in any court of competent jurisdiction, enforce all rights of the noteholders or bondholders, including the right to require the authority to collect fees and charges adequate to carry out any agreement as to, or pledge of, the fees and charges and other properties and to require the authority to carry out any other agreements with the holders of the notes or bonds and to perform its duties under this part;
(2) Bring suit upon the notes or bonds;
(3) By action or suit, require the authority to account as if it were the trustee of an express trust for the holders of the notes or bonds;
(4) By action or suit, enjoin any acts or things that may be unlawful or in violation of the rights of the holders of the notes or bonds; and
(5) Declare all of the notes or bonds due and payable, and if all defaults are made good, then, with the consent of the holders of twenty-five percent (25%) of the principal amount of the notes or bonds then outstanding, to annul the declaration and its consequences.
(c) The trustee shall, in addition to the powers provided in subsection (b), have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth in this part or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.
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