40 Pa. Stat. § 1600.307

Current through Pa Acts 2024-53, 2024-56 through 2024-92

Section 1600.307 - Remedies of bondholders

The rights and the remedies herein conferred upon or granted to the bondholders shall be in addition to and not in limitation of any rights and remedies lawfully granted to such bondholders by the resolution or indenture providing for the issuance of bonds. If the authority shall default in the payment of the interest on any of the bonds after the same shall become due, and such default shall continue for a period of thirty days, or if the authority shall default in the payment of principal after the same shall become due whether at maturity or upon any unrevoked call for redemption, or if the authority shall fail or refuse to comply with the provisions of this act or shall default in any agreement made with the holder of the bonds, the holders of twenty-five per cent in aggregate principal amount of bonds then outstanding under the indenture or bond resolution involved, by instrument or instruments filed in the Office of the Recorder of Deeds of the County of Dauphin and proved or acknowledged in the same manner as a deed to be recorded, may (except as such right may be limited under the provisions of any indenture or other agreement as aforesaid) appoint a trustee to represent the bondholders for the purposes herein provided. Such trustee or any trustee under any indenture or the fiscal agent under any resolution or other agreement may, and upon written request of the holders of twenty-five per cent (or such other percentage as may be specified in any resolution, indenture or other agreement aforesaid) in principal amount of the bonds then outstanding under such indenture or resolution 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 bondholders, including the right to require the authority to carry out any agreement as to, or pledge of, the revenues or receipts of the authority and to require the authority to carry out any other agreements with, or for the benefit of, the bondholders, and to perform its duties under this act;

(2) Bring suit upon the bonds;

(3) By action or suit in equity, require the authority to account as if it were the trustees of an express trust for the bondholders;

(4) By action or suit in equity, enjoin any acts or things which may be unlawful, or in violation of the rights of the bondholders; or

(5) By notice in writing to the authority, declare all bonds due and payable and, if all defaults shall be made good, then with the consent of the holders of twenty-five percent (or such other percentage as may be specified in any indenture, resolution or other agreement aforesaid) of the principal amount of the bonds then outstanding, to annul such declaration and its consequences.

40 P.S. § 1600.307

1968, July 31, P.L. 738, No. 233, art. III, § 307. Affected 1978, April 28, P.L. 202, No. 53, § 2(a) [1420], effective 6/27/1978.