LD 1161
pg. 24
Page 23 of 30 An Act to Create the East-West Highway Authority Page 25 of 30
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LR 1359
Item 1

 
that default continues for a period of 60 days or defaults in any
other agreement with bondholders or with a trustee under a trust
indenture or loan or security agreement, the holders of 25% in
aggregate principal amounts of the bonds then outstanding by
instrument filed in the office of the Secretary of State duly
acknowledged may appoint a trustee to represent the bondholders for
the purpose provided in this section.__The trustee may upon the
written request of the holders of 25% in principal amount of the
bonds then outstanding:

 
1.__Enforcement of rights of bondholders. By mandamus or other
suit, action or proceeding at law or in equity, enforce the
rights of the bondholders;

 
2.__Suit upon bonds. Bring suit upon the bonds;

 
3.__Enjoinment of acts or other things. Enjoin any acts or
other things that may be unlawful or in violation of the rights
of the bondholders; or

 
4.__Require accounting. By action or suit in equity, require
the authority to act as if it were trustee of an expressed trust
for the bondholders. The trustee is entitled, as a right, to the
appointment of a receiver who may, to the extent that the
authority could itself do, enter and take possession of the
facilities of the authority or any part of the facility, the
revenue or receipts from which are or may be applicable to the
payment of the bonds in default, and operate and maintain the
facilities and collect and receive all revenue thereafter arising
from operating the facilities in the same manner as the authority
might do.__The receiver shall deposit all such money in a
separate account and apply that money in such a manner as the
court directs.__In any suit, action or proceeding by the trustee,
the fees, counsel fees and expenses of the trustee and of the
receiver, if any, and all costs and disbursements allowed by the
court are a first charge on any revenues and receipts derived
from the East-West Highway, the revenues and receipts from which
are or may be applicable to the payment of the bonds in default.__
The trustees shall, in addition, have and possess all the powers
necessary and appropriate for the exercise of any functions
specifically set forth in this section or incident to the general
representation of the bondholders in the enforcement and
protection of their rights.__Except as may otherwise be provided
in a bond resolution or trust indenture or loan or other security
agreement, in addition to other rights and limitations, any
bondholder has the right by mandamus or other suit, action or
proceeding in law or in equity to enforce that bondholder's
rights against the authority, including the right to require the
authority to carry out any agreement or covenant and
to perform its duties under this chapter.


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