Section 15920 - Remedies of bondholders(a) If a city fails or neglects to pay or cause to be paid the principal of or the interest on any revenue bond as the same shall become due, whether at the stated maturity or upon call for prior redemption, the holder thereof shall, subject to subsection (b) of this section, and to any reasonable limitations upon individual rights of action properly provided in the bond ordinance, have the right to recover the amount due in an action in assumpsit in the court of common pleas of the county, but the judgment shall be limited to payment out of the assessments, revenues, rates, rents, tolls and charges from the project which are pledged for the payment of such bonds.(b) Notwithstanding any provision in the bonds or in the bond ordinance, if a city shall default in the payment of the principal or of the interest on any series of bonds after the same shall become due, whether at the stated maturity or upon call for prior redemption, and such default shall continue for thirty days, or if a city shall fail to comply with any provision of the bonds, or in any bond ordinance, the holders of twenty-five percent in aggregate principal amount of the bonds of such series then outstanding, by an instrument or instruments filed in the office for the recording of deeds in the county, signed and acknowledged in the same manner as a deed to be recorded, may appoint a trustee, who may be the sinking fund depository, to represent the holders of all such bonds, and such representation shall be exclusive for the purposes herein provided. Such trustee may, and upon written request of the holders of twenty-five percent in principal amount of such bonds then outstanding and upon being furnished with indemnity satisfactory to it, shall in its own name, take one or more of the actions set forth below and the taking of such actions shall preclude similar action whether previously or subsequently initiated by individual holders of bonds:
(1) By mandamus or other suit, action or proceeding at law or in equity enforce all rights of the holders of the bonds, including the right to require the city to impose and collect rents, rates, tolls or charges, for the use of the project or projects financed by such bonds, or to require the city to carry out any other agreements with the holders of such bonds.(2) Bring suit on the bonds without the necessity for producing the bonds, and with same effect as a suit by any holder.(3) Bring suit in equity to require the city to account as if it were the trustee of an express trust for the holders of such bonds, for any pledged revenues received and/or to enjoin any acts or things which may be unlawful or in violation of the rights of the holders of any bonds.(4) After thirty days prior written notice to the city, and subject to any limitations in the bond ordinance, declare the unpaid principal of all bonds to be, and it shall thereby become forthwith due and payable with interest at the rates stated in the bonds until final payment, and, if all defaults shall be made good then to annul such declaration and its consequences.(c) The courts of common pleas, in cases of extreme hardship may provide for the payment of sums levied in five or less annual installments with interest at a rate sufficient to cover the interest accruing on the bonds.1972, Oct. 18, P.L. 955, No. 234, § 20, imd. effective. Affected 1978, April 28, P.L. 202, No. 53, § 2(a)[1455], effective June 27, 1978.