40:68A-15 - Default in payment of bonds; trustees; appointment; powers; receiver - New Jersey Statutes

40:68A-15.  Default in payment of bonds;  trustees;  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 thirty days, or in the event that the Port 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 thirty days after written notice to the Port Authority of its existence and nature, the holders of twenty-five per centum (25%) in aggregate principal amount of the bonds of such series then outstanding, by instrument or instruments filed in the office of the Secretary of State and proved or 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 provided in this section, and to have the  powers provided in this section.

    (a) Such trustee may and upon written request of the holders of twenty-five  per centum (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  Port Authority to charge and collect service charges adequate to carry out any  contract as to, or pledge of, revenues, and to require the Port 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 Port 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 thirty days' prior notice in writing to the Port Authority, and if all defaults shall be made good, then with consent of the holders of twenty-five per centum (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 proceeding 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 and all costs and disbursements, when so allowed, shall be a first  charge upon any service charges and revenues of the Port 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 port  facilities, and such receiver may enter upon and take possession of the port  facilities and, subject to any pledge or contract with the holders of such  bonds, shall take possession of all moneys and other property derived from or  applicable to the acquisition, construction, operation, maintenance or  reconstruction of the port facilities and proceed with such acquisition, construction, operation, maintenance or reconstruction which the Port Authority  is under any obligation to do, and operate, maintain and reconstruct the port  facilities and fix, charge, collect, enforce and receive the service charges  and all 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 Port Authority in the same manner as the Port Authority itself might do and under the direction of the court.

     L.1948, c. 349, p. 1394, s. 15.  Amended by L.1953, c. 37, p. 729, s. 236, eff. March 19, 1953.