§ 5282 - Powers of trustee on default - Vermont Statutes

§ 5282. Powers of trustee on default

(a) A trustee appointed under section 5281 of this title may, and shall in his or her name, upon written request of the holders of 25 percent 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 authority to collect rates, charges and other fees and to collect payments under financing agreements 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 authority 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 authority to account as if it were the trustee of an express trust for the holders of the notes or bonds; and

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

(b) 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 representations of bondholders or noteholders in the enforcement and protection of their rights. (Added 1999, No. 121 (Adj. Sess.), § 1.)