New Hampshire § 35-A-15 - Section 35-A:15 Action Upon Default.

§ 35-A-15. Section 35-A:15 Action Upon Default.

I. In the event that the bank shall default in the payment of principal of or interest on any issue of notes or bonds after the same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of 30 days, or in the event that the bank shall fail or refuse to comply with the provisions of this chapter or shall default in any agreement made with the holders of any issue of notes or bonds, the holders of 25 percent in aggregate principal amount, or more, of the notes or bonds of such issue then outstanding, by instrument or instruments filed in the office of the secretary of state and executed and acknowledged in the same manner as a deed to be recorded, may, subject to agreement as contained in the resolution of the bank authorizing such bonds or notes, appoint a trustee to represent the holders of such notes or bonds for the purposes herein provided. II. Such trustee may, and upon written request of the holders of 25 percent in principal amount, or more, of such notes or 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 noteholders or bondholders, including the right to require the bank to collect rates, charges and other fees and to collect interest and amortization payments on municipal bonds and notes held by it adequate to carry out any agreement as to, or pledge of, such rates, charges and other fees and of such interest and amortization payments, and to require the bank to carry out any other agreements with the holders of such notes or bonds and to perform its duties under this chapter; (b) Bring suit upon such notes or bonds; (c) By action or suit, require the bank to account as if it were the trustee of an express trust for the holders of such notes or bonds; (d) By action or suit in equity enjoin any acts or things which may be unlawful or in violation of the rights of the holders of such notes or bonds; (e) Declare all such 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, or more, of such notes or bonds then outstanding, to annul such declaration and its consequences. III. Such 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 bondholders or noteholders in the enforcement and protection of their rights. IV. The superior court shall have jurisdiction of any suit, action or proceeding by the trustee on behalf of such noteholders or bondholders. The venue of any such suit, action or proceeding shall be laid in the county of Merrimack. V. Before declaring the principal of notes or bonds due and payable, the trustee shall first give 30 days' notice in writing to the governor, to the bank, to the state treasurer and to the attorney general of the state.