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§ 5508. Remedies of bondholders and noteholders

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

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 24 P.S. Education
Chapter 28. The Pennsylvania Higher Educational Facilities Authority Act of 1967 (Refs & Annos)
24 P.S. § 5508
§ 5508. Remedies of bondholders and noteholders
(a) The rights and the remedies herein conferred upon, or granted to the holders of bonds or revenue anticipation notes, shall be in addition to, and not in limitation of, any rights and remedies lawfully granted to such holders, by the resolution or resolutions providing for the issuance of bonds or revenue anticipation notes, or by any deed of trust, indenture or other agreement under which the same shall be issued. In the event that the authority shall default in the payment of principal of, or interest on, any of the bonds or revenue anticipation notes 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 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 or revenue anticipation notes, the holders of twenty-five percent in aggregate principal amount of the bonds or revenue anticipation notes 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 or noteholders 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 percent (or such other percentage as may be specified in any deed of trust, indenture or other agreement aforesaid) in principal amount of the bonds or revenue anticipation notes 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 or noteholders, including the right to require the authority to collect rates, rentals, charges and other pledged assets adequate to carry out any agreements as to, or pledge of the revenues, rentals, receipts and contract rights of, the authority, and to require the authority to carry out any other agreements with or for the benefit of the bondholders or noteholders, and to perform its and their duties under this act;
(2) Bring suit upon the bonds or revenue anticipation notes;
(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 or noteholders;
(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 noteholders;
(5) By notice in writing to the authority, declare all bonds or revenue anticipation notes 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 deed of trust, indenture or other agreement aforesaid) of the principal amount of the bonds or revenue anticipation notes 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 or revenue anticipation notes have been declared due and payable, shall be entitled, as of right, to the appointment of a receiver, who (to the same extent that the authority itself could do so) may enter and take possession of the facilities of the authority or any parts thereof, the revenues, rentals, receipts or pledges from which are, or may be, applicable to, the payment of the bonds or revenue anticipation notes 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 trustee, 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, rentals and receipts derived from the facilities of the authority, the revenues, rentals, receipts or pledges from which are or may be applicable to the payment of the bonds or revenue anticipation notes so in default. Said trustee, in addition to the foregoing, shall 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 or noteholders in the enforcement and protection of their rights.
(c) In addition to all other rights and all other remedies, any holder of bonds or revenue anticipation notes 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 or noteholders and to perform its and their duties under this act.

Credits

1967, Dec. 6, P.L. 678, § 8. Amended 1984, Oct. 12, P.L. 948, No. 185, § 5, imd. effective.
24 P.S. § 5508, PA ST 24 P.S. § 5508
Current through 2022 Regular Session Act 29. Some statute sections may be more current, see credits for details.
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