Vermont § 5034 - Remedies of bondholders and noteholders

§ 5034. Remedies of bondholders and noteholders

• (a) In the event that the Authority defaults in the payment of principal or of interest
  on any bonds or notes issued under this chapter after they become due, whether at
  maturity or upon call for redemption, and the default continues for a period of 30
  days, or in the event that the Authority fails or refuses to comply with the provisions
  of this chapter, or defaults in any agreement made with the holders of an issue of
  bonds or notes of the Authority, 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
  those bonds or notes for the purposes provided. (b) That trustee may, and upon written request of the holders of 25 percent in principal
  amount of the bonds or notes then outstanding shall, in his or her or its own name: (1) enforce all rights of the bondholders or noteholders, including the right to require
  the Authority to fix and collect rates, fees, and charges relating to projects or
  other obligations held by it adequate to carry out any agreement as to, or pledge
  of, the revenues of the Authority, and to require the Authority to carry out any other
  agreements with the holders of the bonds or notes and to perform its duties under
  this chapter; (2) enforce all rights of the bondholders or noteholders, including the right to take
  possession and control of the business and properties of the Authority, to operate
  and maintain the same, to make any necessary repairs, renewals, and replacements to
  them, and to fix, revise, and collect fees and charges, so as to carry out any contract
  as to, or pledge of revenues, and to require the Authority to carry out and perform
  the terms of any contract with the holders of the bonds or notes or its duties under
  this chapter; (3) bring suit upon all or any part of the bonds or notes; (4) by action or suit, require the Authority to account as if it were the trustee of an
  express trust for the holders of the bonds or notes; (5) by action or suit, enjoin any acts or things that may be unlawful or in violation
  of the rights of the holders of the bonds or notes; (6) declare all bonds or notes 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 of the
  bonds or notes then outstanding to annul the declaration and its consequences. (c) The trustee shall in addition to the foregoing have and possess all the powers necessary
  or appropriate for the exercise of any functions specifically set forth in this chapter
  or incident to the general representation of bondholders or noteholders in the enforcement
  and protection of their rights. (d) Before declaring the principal of bonds or notes due and payable, the trustee shall
  first give 30 days’ notice in writing to the Governor, to the Authority, and to the
  Attorney General of the State. (e) The Superior Court shall have jurisdiction of any suit, action, or proceeding by the
  trustee on behalf of bondholders or noteholders. (Added 1979, No. 78, § 3; amended 2023, No. 85 (Adj. Sess.), § 452, eff. July 1, 2024.)