TITLE 23

Health and Safety

CHAPTER 23-19

Rhode Island Resource Recovery Corporation

SECTION 23-19-19



   § 23-19-19  Remedies of bondholders and

noteholders. –

(a) In the event that the corporation shall default on the payment of principal

of or interest on any bonds or notes issued under this chapter after the bonds

or notes shall become due, whether at maturity or upon call for redemption, and

the default shall continue for a period of thirty (30) days, or in the event

that the corporation shall fail or refuse to comply with the provisions of this

chapter, or shall default in any agreement made with the holders of an issue of

bonds or notes of the corporation, the holders of twenty-five percent (25%) in

the aggregate principal amount of the outstanding bonds or notes of the issue,

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 or notes for the purposes

provided in this section.



   (b) The trustee may, and upon written request of the holders

of twenty-five percent (25%) in principal amount of the outstanding bonds or

notes shall, in the trustee's own name:



   (1) Enforce all rights of the bondholders or noteholders,

including the right to require the corporation to collect rent, interest,

repayments, and payments on the leases, mortgages, loan agreements, sales

agreements, and other contracts held by it adequate to carry out any agreement

as to, or pledge of, rent, interest, repayments, and payments, and to require

the corporation 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, so

as to carry out any contract as to, or pledge of revenues, and to require the

corporation 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 corporation 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 which may be

unlawful or in violation of the rights of the holders of the bonds or notes;



   (6) Declare all the bonds or notes due and payable and, if

all defaults shall be made good, then with the consent of the holders of

twenty-five percent (25%) of the principal amount of the outstanding bonds or

notes, to annul the declaration and its consequences.



   (c) The trustee shall, in addition to the provisions of

subsections (a) and (b), have and possess all the powers necessary or

appropriate for the exercise of any functions specifically set forth in this

section 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 thirty (30) days' notice in writing to

the governor, to the corporation and to the attorney general of the state.



   (e) The superior court of Providence County shall have

jurisdiction of any suit, action, or proceeding by the trustee on behalf of

bondholders or noteholders.



History of Section.

(P.L. 1974, ch. 176, § 1; P.L. 1978, ch. 305, § 16; G.L. 1956, §

23-46.1-19; P.L. 1979, ch. 39, § 1; G.L. 1956, § 23-19-19; P.L. 2001,

ch. 86, § 80.)