N.Y. Transportation Law 62 – Remedies against the Utica transit authority
§ 62. Remedies against the Utica transit authority. 1. In an action or proceeding to foreclose a mortgage on property of the Utica transit authority, the authority and all other necessary parties, shall be made parties defendant and shall take such steps in said action as may be necessary to protect the public interest therein and no costs shall be awarded against them. Wherever under the instrument creating a lien a notice of default in writing is required to be served upon the Utica transit authority before the institution of a foreclosure action or proceeding, a copy of such notice shall be served upon the chairman of the authority at least five days before the institution of such proceedings. At such a sale of the property of the mass transportation authority pursuant to foreclosure or other proceedings, the municipality or municipalities within whose territorial jurisdiction the property exists may purchase the property affected; or such municipality or municipalities may, prior to the institution of a foreclosure action or proceeding, or during such action or proceeding make such payment or take such other steps as may be necessary to cure any defaults that may have occurred and such steps as may be necessary to protect the property of the Utica transit authority and the public interest.
Terms Used In N.Y. Transportation Law 62
- Authority: shall mean a public benefit corporation created by section forty-one of this Article -I of the general municipal law. See N.Y. Transportation Law 40
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- 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.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Municipal project: shall mean any omnibus transportation capital project undertaken by a municipal corporation. See N.Y. Transportation Law 40
- Municipality: shall mean a city, town, village or county not wholly contained within a city. See N.Y. Transportation Law 40
- Project: shall mean a specific work or improvement to effectuate all or any part of a plan. See N.Y. Transportation Law 40
- Property: shall mean both real and personal property. See N.Y. Transportation Law 40
- State: shall mean New York State. See N.Y. Transportation Law 40
- Trustee: A person or institution holding and administering property in trust.
- Venue: The geographical location in which a case is tried.
2. In the event that the Utica transit authority shall default in the payment of principal of or interest on an 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 the authority shall fail or refuse to comply with the provisions of this article or shall default in an agreement with the holders of an issue of bonds then outstanding, the holders of twenty-five per cent of the aggregate principal amount of the bonds of the issue then outstanding by instrument or instruments filed in the office of the clerk of the county in which the principal office of the Utica transit authority is situated and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of the bonds for the purposes herein provided. Such trustee may declare all the bonds due and payable, but before declaring the principal of the bonds due and payable, he shall first give thirty days' notice in writing to the authority, and, if all defaults shall be made good, then with the consent of the holders of twenty-five per cent of the aggregate principal amount of the bonds then outstanding, he shall annul the declaration and its consequences. He shall, in addition to any powers granted by this section, have and possess all of the powers necessary or appropriate for the exercise of functions specifically set forth herein or incident to the general representation of bondholders in the enforcement and protection of their rights.
3. In addition to any other rights and remedies, but subject to such limitations as may be made by contract, any obligee, lessor or mortgagee, or any trustee or agent designated in the bonds of the Utica transit authority or appointed as provided in paragraph two of this section, or under a resolution, mortgage or indenture executed by the Utica transit authority as security for its bonds may:
(a) bring suit upon the bonds of the Utica transit authority;
(b) by suit, action or special proceeding at law or in equity enforce all rights of the bondholders, including the right to require the Utica transit authority to collect revenues, rates, fares, fees, rentals and other charges adequate to carry out any agreement as to, or pledge of, such revenues, rates, fares, fees, rentals and other charges, and to require the authority to carry out any other agreement with the bondholders and to perform its duties under this article;
(c) by suit, action or special proceeding at law or in equity compel the authority to perform each and every term, provision and covenant contained in any agreement of the authority with an obligee, trustee, mortgagee or lessor and require the performance of any or all such covenants and agreements of the Utica transit authority and of the duties imposed upon such authority by this article;
(d) by action or suit, enjoin any acts or things which may be unlawful or in violation of the rights of such obligee, trustee, mortgagee, or lessor;
(e) by suit, action or proceeding in any court of competent jurisdiction compel possession of any project or any part thereof to be surrendered to such obligee, trustee, mortgagee, or lessor having the right to such possession under any agreement with the authority;
(f) by suit, action or proceeding in any court of competent jurisdiction obtain the appointment of a receiver of any municipal project of the mass transportation authority or any part thereof and of the rents and profits therefrom. If such receiver be appointed, he may enter and take possession of such project or any part or parts thereof and operate and maintain the same, and collect and receive all fees, rates, fares, rents, revenues, or other charges thereafter arising therefrom in the same manner as the Utica transit authority itself might do, and shall keep such moneys in a separate account or accounts and apply the same in accordance with the obligations of the authority as the court shall direct;
(g) by action or suit require the Utica transit authority to account as if it were the trustee of an express trust.
4. The supreme court of the state shall have jurisdiction of a suit, action or proceeding by a trustee on behalf of the bondholders. The venue of the suit, action or proceeding shall be laid in the county in which the principal office of the Utica transit authority is situated.
5. In a suit, action or proceeding by a trustee for the bond holders, the fees, counsel fees and expenses of the trustee and of the receiver, if any, shall constitute taxable disbursements and all costs and disbursements allowed by the courts shall be a first charge on revenues, rates, fares, fees, rentals and other charges derived from the municipal project.