1-16B-26. Trustee's powers in protection of bondholders or noteholders.

The trustee may, and upon written request of the holders of twenty-five percent of the principal amount of the outstanding bonds or notes shall, in the trustee's own name:

(1)    Enforce all rights of the bondholders or noteholders, including the rights to require the authority to collect interest and amortization payments on the mortgages held by it, adequate to carry out any agreement as to, or pledge of, such interest and amortization payments, to collect and enforce the payment of principal and interest due or becoming due on loans to mortgage lenders and collect and enforce any collateral securing such loans or sell such collateral, so as to carry out any contract as to, or pledge of such revenues, and to require the authority to perform the terms of any contract with the holders of the bonds or notes and to perform its duties under this chapter;

(2)    Bring suit upon all or any part of the bonds or notes;

(3)    Require the authority to account as if it were the trustee of an express trust for the holders of the bonds or notes;

(4)    Enjoin any acts which may be unlawful or in violation of the rights of the holders of the bonds or notes;

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

Source: SL 1978, ch 9, § 22; SL 2009, ch 1, § 11.