215.170. Default, trustee appointed when, powers of trustee. - Missouri Statutes

Default, trustee appointed when, powers of trustee.

215.170. 1. If the commission defaults in the payment of principal orinterest on any issue of notes or bonds after the same shall become due,whether at maturity or upon call for redemption, and such default continuesfor a period of thirty days or if the commission fails or refuses to complywith the provisions of sections 215.010 to 215.250, or defaults in anyagreement made with the holders of any issue of notes or bonds, the holders oftwenty-five percent in aggregate principal amount of the notes or bonds ofsuch issue then outstanding may appoint a trustee to represent the holders ofsuch notes or bonds for the purposes set forth in this section and sections215.180 and 215.190.

2. The trustee appointed pursuant to subsection 1 may, and upon writtenrequest of the holders of twenty-five percent in principal amount of suchnotes or bonds then outstanding shall, in his own name:

(1) Enforce all rights of the noteholders or bondholders including theright to require the commission to collect fees and charges and interest andamortization payments on mortgage loans made by it adequate to carry out anyagreement as to, or pledge of, such fees and charges and interest andamortization payments of such mortgages and other properties, and to requirethe commission to carry out any other agreements with the holders of suchnotes or bonds and to perform its duties under sections 215.010 to 215.250;

(2) Bring suit upon such notes or bonds;

(3) Require the commission to account as if it were the trustee of anexpress trust for the holders of such notes or bonds;

(4) Enjoin any acts or things which may be unlawful or in violation ofthe rights of the holders of such notes or bonds; or

(5) Declare all such notes or bonds due and payable; and if all defaults shall be made good, then, with the consent of the holdersof twenty-five percent of the principal amount of such notes or bonds thenoutstanding, to annul such declaration and its consequences.

3. In addition to the powers granted in subsections 1 and 2 the trusteeshall have and possess all of the powers necessary or appropriate for theexercise of any functions specifically set forth herein or incident to thegeneral representation of bondholders and noteholders in the enforcement andprotection of their rights.

(L. 1969 H.B. 130 §§ 25, 26, 27)