(a. The provisions of this section shall be applicable to an issue of bonds only if the resolution or resolutions authorizing such bonds shall provide in substance that the holders of such bonds are entitled to all the benefits of and subject to the provisions of this section.
(b. In the event that any institution shall default in the payment of principal of or interest on any series of its 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 such institution shall fail or refuse to comply with the provisions of this chapter, or shall default in any agreement made with the holders of its bonds of any series, the holders of twenty-five per centum in aggregate principal amount of the bonds of such series then outstanding, by instrument or instruments filed with the Governor and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such series for the purposes herein provided.
(c. Such trustee may, and upon written request of the holders of twenty-five per centum in principal amount of the bonds of such series then outstanding shall, in his or its own name:
(1. By mandamus or other suit, action or proceeding at law or in equity enforce all rights of the holders of bonds of such series, including the right to require such institution and its board to collect fees, rents, charges or other revenues adequate to carry out any agreement as to, or pledge of, such revenues, and to require such institution and board to carry out any other agreements with the holders of the bonds of such series and to perform it and their duties under this chapter;
(3. By action or suit in equity, require such institution to account as if it were the trustees of an express trust for the holders of such bonds;
(4. By action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such bonds.
(d. If the resolution or resolutions which authorize any bonds contain the provision authorized by subsection (a) of this section and further provide in substance that any trustee appointed by the holders of the bonds pursuant to this section shall have the powers provided by this subsection, then any such trustee, whether or not all such bonds have been declared due and payable, shall be entitled as of right to the appointment of a receiver who may enter and take possession of any property of the institution any of the revenues from which are pledged for the security of the bonds the holders of which are represented by such trustee and operate and maintain the same and collect and receive all fees, rents, charges and other revenues thereafter arising therefrom in the same manner as the institution itself might do and shall deposit all such moneys in a separate account and apply the same in such manner as the court shall direct. In any suit, action or proceeding by the trustee the fees, counsel fees and expenses of the trustee and of the receiver, if any, shall constitute taxable costs and disbursements and all costs and disbursements allowed by the court shall be a first charge on any fees, rents, charges and other revenues of the institution pledged for the security of the bonds.
(e. 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 the holders of bonds represented by such trustee in the enforcement and protection of their rights.
History
1933, p. 87; 1946, p. 186.
