53 Pa. Stat. § 25687

Current through Pa Acts 2024-53, 2024-56 through 2024-95

Section 25687 - Rights and remedies of bondholders

The rights and the remedies herein conferred upon or granted to the bondholders shall be in addition to, and not in limitation of, any rights and remedies lawfully granted to such bondholders by the resolution or resolutions or ordinance or ordinances providing for the issuance of bonds or by any deed of trust, indenture or other agreement under which the same may be issued. In the event that the city shall default in the payment of principal of or interest on any of the bonds after the said principal or interest shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of thirty days, or in the event that the city shall fail or refuse to comply with the provisions of this act or shall default in any agreement made with the holders of the bonds, the holders of twenty-five per centum in aggregate principal amount of the bonds then outstanding by instrument or instruments filed in the office of the recorder of deeds of the county and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the bondholders for the purposes herein provided. Such trustee, and any trustee under any deed of trust, indenture or other agreement may, and upon written request of the holders of twenty-five per centum (or such other percentage as may be specified in any deed of trust, indenture or other agreement aforesaid) in principal amount of the bonds then outstanding, shall in his or its own name--

(a) By mandamus or other suit, action or proceeding at law or in equity, enforce all rights of the bondholders, including the right to require the city to collect rates, rentals and other charges adequate to carry out any agreement as to or pledge of the revenues or receipts of the waterworks, and to require the city to carry out any other agreements with or for the benefit of the bondholders, and to perform its and their duties under this act.

(b) Bring suit upon the bonds.

(c) By action or suit in equity, require the city to account as if it were the trustee of an express trust for the bondholders.

(d) By action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the bondholders.

(e) By notice in writing to the city declare all bonds due and payable, and if all defaults shall be made good, then, with the consent of the holders of twenty-five per centum (or such other percentage as may be specified in any deed of trust, indenture or other agreement aforesaid) of the principal amount of the bonds then outstanding, to annul such declaration and its consequences.

The court of common pleas of the county shall have jurisdiction of any suit, action or proceedings by the trustee on behalf of the bondholders. Any trustee, whether appointed as aforesaid or acting under a deed of trust, indenture or other agreement, and whether or not all bonds have been declared due and payable, shall be entitled as of right to the appointment of a receiver who may enter and take possession of the waterworks or any part or parts thereof, the revenues or receipts from which are or may be applicable to the payment of the bonds so in default, and operate and maintain the same and collect and receive all rentals and other revenues thereafter arising therefrom, in the same manner as the city, and shall deposit all such moneys in a separate account and apply the same in such manner as the court shall direct 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 shall be a first charge on any revenues and receipts derived from the waterworks, the revenues or receipts from which are or may be applicable to the payment of the bonds so in default. Said trustee shall, in addition to the foregoing, have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth herein or incident to the general representation of the bondholders in the enforcement and protection of their rights.

53 P.S. § 25687

1937, July 1, P.L. 2631, § 7.