New Jersey § 58:5-49

§ 58:5-49.

(1) If the bond resolution of a commission authorizing or providing for the issuance

of a series of its bonds shall provide in substance that the holders of the bonds

of such series shall be entitled to the benefits of this section, then in the event

that there shall be a default in the payment of principal of or interest on any bonds

of such series 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 commission shall fail or refuse to comply with the provisions of this act

shall fail or refuse to carry out and perform the terms of any contract with the holders

of any such bonds, and such failure or refusal shall continue for a period of 30 days

after written notice to the commission of its existence and nature, the holders of

25% in aggregate principal amount of the bonds of such series 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 the bonds of such series for the purposes provided in

this section. (2) Such trustee may and upon written request of the holders of 25% in aggregate principal

amount of the bonds of such series then outstanding shall, in his or its own name: (a) By any action, writ, proceeding in lieu of prerogative writ, or other proceeding,

enforce all rights of the holders of such bonds, including the right to require the

commission to charge and collect service charges adequate to carry out any contract

as to, or pledge of, project revenues, and to require the commission to carry out

and perform the terms of any contract with the holders of such bonds or its duties

under this act; (b) Bring an action upon all or any part of such bonds or interest coupons or claims

appurtenant thereto; (c) By action, require the commission to account as if it were the trustee of an express

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

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

upon 30 days' prior notice in writing to the commission 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. (3) Such 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 of

such series in the enforcement and protection of their rights. (4) In any action or proceeding by such trustee, the fees, counsel fees and expenses

of the trustee and of the receiver, 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 service charges and project revenues

of the commission pledged for the payment or security of bonds of such series.