§ 42-64-25. Remedies of bondholders and note-holders. (a) In the event that the Rhode Island commerce corporation shall default in 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 aggregate principal amount of the bonds or notes of an 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 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 bonds or notes then outstanding shall, in the trustee's own name:

(1) Enforce all rights of the bondholders or note-holders, including the right to require the corporation to collect rent, interest repayments and payments on the leases, mortgages, loan agreements and sales agreements 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 note-holders 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 its bonds or notes or its duties under the 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 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 section or incident to the general representation of bondholders or note-holders 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 of the state and to the corporation.

(e) The superior court of Providence County shall have jurisdiction of any suit, action, or proceeding by the trustee on behalf of bondholders or note-holders.

History of Section. (P.L. 1974, ch. 100, § 14; P.L. 2013, ch. 243, § 3; P.L. 2013, ch. 490, § 3.)