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§ 791.7. Remedies of bondholders

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 24 P.S. Education

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 24 P.S. Education
Chapter 2. Miscellaneous Laws Relating to Schools
State Public School Building Authority Act (Refs & Annos)
24 P.S. § 791.7
§ 791.7. Remedies of bondholders
(a) 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 resolutions providing for the issuance of bonds, or by any deed of trust, indenture or other agreement under which the same may be issued or secured. In the event that the Authority shall default in the payment of principal of, or interest on, any of the bonds after said principal or interest shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of thirty (30) days, or in the event that the Authority shall fail or refuse to comply with the provisions of this act, or shall default in any agreement made with the holders of the bonds, the holders of twenty-five per centum in aggregate principal amount of the bonds then outstanding, by instrument or instruments filed in the office of the recorder of deeds of the county, 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 deed of trust, indenture or other agreement as aforesaid), appoint a trustee to represent the bondholders for the purposes herein provided. Such trustee and any trustee under any deed of trust, indenture or other agreement may, and upon written request of the holders of twenty-five per centum (or such other percentage as may be specified in any deed of trust, indenture or other agreement aforesaid) in principal amount of the bonds 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 bondholders, including the right to require the Authority to collect rates, rentals and other charges adequate 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 and their 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 trustee 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;
(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 per centum (or such other percentage as may be specified in any deed of trust, indenture or other agreement aforesaid) of the principal amount of the bonds then outstanding, to annul such declaration and its consequences;
(b) Any trustee, whether appointed as aforesaid or acting under a deed of trust, indenture or other agreement, and whether or not all bonds have been declared due and payable, shall be entitled as of right to the appointment of a receiver, who may (to the same extent that the Authority itself could so do) enter and take possession of the facilities of the Authority or any parts thereof, the revenues, rentals, or receipts from which are, or may be applicable to, the payment of the bonds so in default, and operate and maintain the same and collect and receive all rentals and other revenues thereafter arising therefrom in the same manner as the Authority 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 trustees, the fees, counsel fees and expenses of the trustee, and of the receiver, if any, and all costs and disbursements allowed by the court, shall be a first charge on any revenues and receipts derived from any project or otherwise, the revenues or receipts from which are or may be applicable to the payment of the bonds so in default. Said 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 bondholders in the enforcement and protection of their rights;
(c) In addition to all other rights and all other remedies, any holder of bonds of the Authority shall have the right by mandamus or other suit, action or proceeding at law, or in equity, to enforce his rights against the Authority, including the right to require the Authority to collect fees, rentals and other charges adequate to carry out any agreement as to, or pledge of, such fees, rentals or other charges or income, revenues and receipts, and to require the Authority to carry out any of its covenants and agreements with the bondholders and to perform its and their duties under this act.

Credits

1947, July 5, P.L. 1217, § 7. Amended 1984, March 23, P.L. 138, No. 26, § 6, imd. effective.
24 P.S. § 791.7, PA ST 24 P.S. § 791.7
Current through 2022 Regular Session Act 40. Some statute sections may be more current, see credits for details.
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