New York § 130-F - 130-FActions for accounting by minority groups; expenses thereof

§ 130-F. 130-FActions for accounting by minority groups; expenses thereof

§ 130-f. Actions for accounting by minority groups; expenses thereof. In any special proceeding or action brought by or on behalf of any minority bondholder or group of minority bondholders, or any person or group of persons not holding at least fifty-one per centum of the stock or bonds of the mortgage issue, but claiming an interest in the trust property, for a judicial accounting, the court may take into consideration the information as to income and disbursements theretofore furnished to bondholders, the merits and good faith of the proceeding or action, and whether the accounting will be of value to the bondholders, as well as the cost of such accounting, and the court may require that the petitioner or plaintiff furnish a surety company bond to indemnify the estate against the expenses of the accounting, including fees of the referee to take the accounting, stenographic fees, and the expenses of the trustee, and may direct that, if it should appear that the accounting result in any practical benefit to all the bondholders, the court should then, in its discretion, release the indemnity, and that if no such benefit accrue, the petitioner or plaintiff and his attorney should receive no compensation, and the trust fund should be reimbursed for the expenses saddled upon it by reason thereof.