New Jersey § 55:14k-22

§ 55:14k-22.

a. If the agency defaults in the payment of principal of or interest on any issue

of bonds after the same becomes due, whether at maturity or upon call for redemption,

and the default continues for a period of 30 days, or if the agency fails or refuses

to comply with the provisions of this act or fails or refuses to carry out and perform

the terms of any contract with the holders of bonds and the failure or refusal continues

for a period of 30 days after written notice to the agency of its existence and nature,

the holders of 25% in aggregate principal amount of such issue of bonds 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 those bonds for the purposes provided in this section. b. The trustee may, and upon written request of the holders of 25% in aggregate principal

amount of such bonds then outstanding shall, in the trustee's own name: (1) by any action, writ, or other proceeding, enforce all rights of the holders of

such bonds, including the right to collect and enforce the payment of principal of

and interest due or becoming due on eligible loans and loans to institutional lenders

and collect and enforce any collateral securing such loans or sell such collateral

and the right to cause the foreclosure of any eligible mortgage loan, and to sell

any property purchased at any such foreclosure, so as to carry out any contract as

to, or pledge of, revenues, and to require the agency to carry out and perform the

terms of any contract with the holders of such bonds or its duties under this act; (2) bring suit upon all or any part of such bonds; (3) by action, require the agency to account as if it were the trustee of an express

trust for the holders of such bonds; (4) by action, enjoin any acts or things which may be unlawful or in violation of

the rights of the holders of such bonds; or (5) declare all such bonds due and payable, whether or not in advance of maturity,

upon 30 days' prior notice in writing to the agency, and, if all defaults shall be

made good, then with the consent of the holders of 25% of the principal amount of

such bonds then outstanding, annul such declaration and its consequences. c. The trustee shall, in addition to the foregoing, have and possess all of the powers

necessary or appropriate for the exercise of the functions specifically set forth

herein or incident to the general representation of the holders of bonds in the enforcement

and protection of their rights. d. In any action or proceeding by such trustee, the fees, counsel fees and expenses

of the trustee, if any, appointed pursuant to this act, shall constitute taxable costs

and disbursements, and all costs and disbursements, allowed by the court, shall be

a first charge upon any revenues, moneys, funds or property of the agency pledged

for the payment or security of such issue of bonds.