Nevada § 315.99866 - Notes, bonds and other obligations: Remedies of bondholders and noteholders

§ 315.99866. Notes, bonds and other obligations: Remedies of bondholders and noteholders

1. If the Authority defaults in the payment of principal of or interest on any bonds

or notes issued under NRS 315.9981 to 315.99874 , inclusive, after it is due, whether at maturity or upon call for redemption, and

such default continues for a period of 30 days, or if the Authority fails or refuses

to comply with the provisions of NRS 315.9981 to 315.99874 , inclusive, or defaults in any agreement made with the holders of an issue of its

bonds or notes, the holders of 25 percent in aggregate principal amount of the bonds

or notes of such issue then outstanding, by instrument or instruments filed in the

Office of the Secretary of State and proved or acknowledged in the same manner as

a deed to be recorded, may appoint a trustee to represent the holders of such bonds

or notes for the purposes provided in this section. 2. The trustee may, and upon written request of the holders of 25 percent in principal

amount of such bonds or notes then outstanding shall, in his, her or its own name: (a) Enforce the right of the bondholders or noteholders 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,

and to require the Authority to carry out any other agreements with the holders of

such bonds or notes and to perform its duties under NRS 315.9981 to 315.99874 , inclusive. (b) Enforce the right of the bondholders or noteholders to collect and enforce the

payment of principal of and interest due or becoming due on loans to lending institutions

and collect and enforce any rights in respect to collateral securing such loans or

sell such collateral, so as to carry out any contract as to, or pledge of revenues,

and to require the Authority to carry out any contract as to, or pledge of revenues,

and to require the Authority to perform its duties under NRS 315.9981 to 315.99874 , inclusive. (c) Bring suit upon all or any part of such bonds or notes. (d) By civil action, require the Authority to account as if it were the trustee of

an express trust for the holders of such bonds or notes. (e) By civil action, enjoin any acts or things which may be unlawful or in violation

of the rights of the holders of such bonds or notes. (f) Declare all such bonds or notes due, and if all defaults are made good then with

the consent of the holders of 25 percent of the principal amount of such bonds or

notes then outstanding, to annul such declaration and its consequences. (g) Enforce any other right of the bondholders or noteholders conferred by law or

by the proceedings of the Authority authorizing the issuance of the bonds or notes. 3. The trustee shall, in addition to the powers listed in subsection 2, have all the

powers necessary or appropriate for the exercise of any functions specifically set

forth in this section or incident to the general representation of bondholders or

noteholders in the enforcement and protection of their rights. 4. Before declaring the principal of bonds or notes due, the trustee shall give 30

days' notice in writing to the Governor, to the Authority and to the Attorney General

of this State. 5. The District Court of the First Judicial District has jurisdiction of any suit,

action or proceeding by the trustee on behalf of bondholders or noteholders.