§ 124. Purpose and application of article. It is the purpose of the legislature, in enacting this article, to provide for the regulation and supervision of the appointment, creation, agreements, acts, conduct, practices and proceedings of trustees, bondholders’ protective committees, depositaries, management companies, voting trustees and other persons administering, holding in custody or otherwise concerned […]
§ 125. Definitions. As used in this article, unless the context requires otherwise: 1. “Mortgage investments” shall mean and include any and all shares and interests, heretofore or hereafter acquired, in an issue of bonds, notes or other evidence of indebtedness of individuals, partnerships, associations or corporations, held by more than one person and secured […]
§ 126. Trust indentures. No trustee shall hereafter accept a trust under any trust indenture or mortgage within the contemplation of this article or act as trustee thereunder unless the instrument creating the trust shall contain the following provisions, among others, which confer the following powers and impose the following duties upon the trustees: 1. […]
§ 127. Restrictions on trustees. 1. No trustee shall accept a trust or act as trustee under a trust mortgage affecting any property in which he or any of the officers or directors of the trustee shall have, directly or indirectly, any financial interest. 2. No trustee nor any officer or director of a trustee, […]
§ 128. Minimum bid of trustee at sale on foreclosure to be fixed by court. Notwithstanding any inconsistent provision of law, on application for judgment of foreclosure and sale in an action brought to foreclose a trust indenture, deed of trust or mortgage upon real property, except where a plan of reorganization shall have been […]
§ 129. No deposit agreement shall be valid or binding which does not set forth the following provisions for the protection of the bondholders: (a) That the fees of the members of the committee, the assignee or the other person or persons to whom the deposit agreement was given, as the case may be, shall […]
§ 130-a. Restrictions on committees. No sale of mortgage investments by a committee shall be valid unless the fairness of the price received at such sale shall have first been approved by the court except that where an action to foreclose a mortgage on the property is pending, the application to pass upon the fairness […]
§ 130-b. Managing agents and management companies. 1. A person, firm, association or corporation appointed, designated or employed by a trustee entering or taking possession of mortgaged property to collect rents from, or to manage or supervise the operation and maintenance of property shall be bonded by a surety bond, approved by the court as […]
§ 130-c. Voting trustees and voting trust agreements. 1. No trustee or member of a committee or the attorney of such trustee or committee or any employee of either shall be eligible to become a voting trustee or an officer or director of a corporation to be formed or used under a plan of reorganization […]
§ 130-d. Fees and allowances. In the event of a default in a trust indenture necessitating the sequestration of the rents and income of the property covered thereby and where the trustee or committee or other person or persons representing the bondholders is or are lawfully in possession of the property and they or their […]
§ 130-e. Removal of trustees, committees or depositaries. A trustee, committee or any member thereof and a depositary may be removed by the court for cause shown upon the application of any person aggrieved by the act or omission to act of such trustee, committee, member or depositary after such notice and opportunity to be […]
§ 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 […]
§ 130-g. Violations and penalties. The wilful violation of any provision of this article, except section one hundred and twenty-six unless elsewhere otherwise defined, shall constitute a misdemeanor and shall be punishable, unless elsewhere otherwise prescribed by a fine of not exceeding one thousand dollars or by imprisonment for not exceeding one year or by […]
§ 130-h. Construction of article. This article shall be construed liberally to effectuate its purpose. The enumeration by this article of specific powers and duties in trust indentures and other instruments shall not preclude or prevent the use, exercise or enjoyment of additional powers and duties under or pursuant to such instruments or excuse the […]
§ 130-i. Separability. If any of the provisions of this article or the application thereof to any person or circumstance be held invalid, such invalidity shall not affect or impair other provisions or applications to other circumstances which can be given effect without the invalid provision or application, and to this end the provisions of […]
§ 130-j. Right to appeal. Any person aggrieved by any determination hereunder shall have such right of appeal as is granted to a party to a special proceeding. All proceedings and appeals hereunder shall be entitled to such preference as is granted in respect to plans of reorganization under the provisions of section one hundred […]
§ 130-k. Exemptions from restrictions on trustees and trust indentures. The provisions of sections one hundred and twenty-six and one hundred and twenty-seven of this article shall not apply to any mortgage, deed of trust, trust indenture, or other similar instrument which has been qualified with the United States securities and exchange commission pursuant to […]
