Sec. 44.85.320. Powers and duties of trustee on default.

324 words·~1 min read·/ak/title-44/chapter-85/44-85-320·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A trustee appointed under AS 44.85.310 may, and shall in the trustee's name, upon written request of the holders of 25 percent in principal amount of the outstanding notes or bonds,

(1)by civil action enforce all rights of the noteholders or bondholders, including the right to require the bond bank authority 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 an agreement as to, or pledge of, the rates, charges, and other fees and of the interest and amortization payments, and to require the bond bank authority to carry out any other agreements with the holders of the notes or bonds and to perform its duties under this chapter;

(2)bring a civil action upon the notes or bonds;

(3)by civil action require the bond bank authority to account as if it were the trustee of an express trust for the holders of the notes or bonds;

(4)by civil action enjoin anything that may be unlawful or in violation of the rights of the holders of the notes or bonds;

(5)declare all the notes or bonds due and payable, and if all defaults are made good, then with the consent of the holders of 25 percent of the principal amount of the outstanding notes or bonds, annul the declaration and its consequences;

(6)in addition to the foregoing, exercise all the powers necessary for the exercise of functions specifically set out or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.

(b)Before declaring the principal of notes or bonds due and payable, the trustee must first give 30 days' notice in writing to the governor, the bond bank authority, the commissioner of commerce, community, and economic development, and the attorney general of the state.