§ 812 - Powers of trustee on default - Vermont Statutes

§ 812. Powers of trustee on default

(a) A trustee appointed under section 811 of this chapter may, and shall in his or her or its name, upon written request of the holders of 25 percent in principal amount of the notes or bonds then outstanding:

(1) by civil action, enforce all rights of the noteholders or bondholders, including the right to require the authority to collect fares, tolls, rentals, rates, charges and other fees adequate to carry out any agreement as to, or pledge of, the fares, tolls, rentals, rates, charges and other fees 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;

(4) by action or suit, enjoin any acts or things which may be unlawful or in violation of the rights of the holders of the notes or bonds;

(5) declare all notes or bonds due and payable, and if all defaults shall be made good, then, with the consent of the holders of 25 percent of the principal amount of the notes or bonds then outstanding, annul the declaration and its consequences.

(b) The trustee shall, in addition to the foregoing, have all of 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.

(c) Before declaring the principal of notes or bonds due and payable, the trustee shall give 30 days' notice in writing to the governor, to the authority, and to the general assembly. (Added 1973, No. 14, § 2, eff. Feb. 23, 1973.)