40:66A-48 - Default in payment of bonds; trustee; appointment; powers; receiver - New Jersey Statutes

40:66A-48.  Default in payment of bonds;  trustee;  appointment; powers; receiver
    In the event that there shall be a default in the payment of principal of or  interest on any bonds after the same shall become due, whether at maturity or  upon call for redemption, and such default shall continue for a period of 30  days, or in the event that the solid waste management authority shall fail or  refuse to comply with the provisions of this act or shall fail or refuse to  carry out and perform the terms of any contract with the holders of any of such  bonds, and such failure or refusal shall continue for a period of 30 days after  written notice to the solid waste management authority of its existence and  nature, the holders of 25% in aggregate principal amount of the bonds of such  series then outstanding, by instruments or instrument filed in the office of  the Secretary of State and proved and acknowledged in the same manner as a deed  to be recorded, may appoint a trustee to represent the holders of the bonds of  such series for the purposes in this section, and to have the powers provided  in this section.

    (a) Such trustee may and upon written request of the holders of 25% in aggregate principal amount of the bonds of such series then outstanding shall, in his or its own name;

     (1) By an action or proceeding in a court of competent jurisdiction, enforce all rights of the holders of such bonds, including the right to require  the solid waste management authority to charge and collect service charges  adequate to carry out any contract as to, or pledge of, system revenues, and to  require the solid waste management authority to carry out and perform the terms  of any contract with the holders of such bonds or its duties under this act;

     (2) Bring an action upon all or any part of such bonds or interest coupons  or claims appurtenant thereto;

     (3) By an action require the solid waste management authority to account as  if it were the trustee of an express trust for the holders of such bonds;

     (4) By an action enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such bonds;  or

     (5) Declare all such bonds due and payable, whether or not in advance of maturity, upon 30 days' prior notice in writing to the solid waste management authority and, if all defaults shall be made good, then with the consent of the  holders of 25% of the principal amount of such bonds then outstanding, annul  such declaration and its consequences.

    (b) Such trustee shall, in addition to the foregoing, have and possess all of the powers necessary or appropriate for the exercise of the functions specifically set forth herein or incident to the general representation of the holders of bonds of such series in the enforcement and protection of their rights.

    (c) In any action or proceedings by such trustee, the fees, counsel fees and  expenses of the trustee and of the receiver, if any, appointed pursuant to this  act, may be allowed by the court as taxable costs and disbursements or  otherwise, when so allowed, shall be a first charge upon any service charges  and system revenues of the solid waste management authority pledged for the  payment or security of bonds of such series.

    (d) Such trustee, upon such default referred to in this section, whether or  not all of the bonds of such series shall have been declared due and payable,  shall be entitled as of right to the appointment of a receiver of the garbage  and solid wastes disposal system, and such receiver may enter upon and take  possession of all moneys and other property derived from or applicable to the  acquisition, construction, operation, maintenance or reconstruction which the  solid waste management authority is under any obligation to do, and operate,  maintain and reconstruct the garbage and solid wastes disposal system and fix,  charge, collect, enforce and receive the service charges and all system  revenues thereafter arising subject to any pledge thereof or contract with the  holders of such bonds relating thereto and perform the public duties and carry  out the contracts and obligations of the solid waste management authority in  the same manner as the solid waste management authority itself might do and  under the direction of the court.

     L.1968, c. 249, s. 15, eff. Aug. 16, 1968.