§ 4703 - Powers of trustee on default - Vermont Statutes

§ 4703. Powers of trustee on default

A trustee appointed under section 4702 of this title may, and shall in his or her or its name, upon written request of the holders of 25 per centum in principal amount of the outstanding notes or bonds:

(1) By suit, action or proceeding, enforce all rights of the noteholders or bondholders, including the right to require the bank to collect rates, charges and other fees and to collect interest and amortization payments on municipal bonds, revenue bonds and notes held by it adequate to carry out any agreement as to, or pledge of, the rates, charges and other fees and of the interest and amortization payments, and to require the bank to carry out any other agreements with the holders of the notes or bonds and to perform its duties under this chapter;

(2) Bring suit upon the notes or bonds;

(3) By action or suit, require the bank to account as if it were the trustee of an express trust for the holders of the notes or bonds;

(4) By action or suit in equity enjoin anything which may be unlawful or in violation of the rights of the holders of the notes or bonds;

(5) Declare all the notes or bonds due and payable, and if all defaults are made good, then with the consent of the holders of 25 per centum of the principal amount of the outstanding notes or bonds, annul the declaration and its consequences;

(6) The trustee shall in addition to the foregoing have all the powers necessary for the exercise of any functions specifically set forth herein or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights. (Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 31, eff. May 15, 1987.)