New York Personal Property Law Section 285 - Definitions.

285. Definitions. As used in this article:

1. The term "bond" means (a) a bond, note or other obligation of any kind or nature, whether secured or unsecured, which is part of an issue held by more than one person, or (b) a certificate or other instrument which is part of an issue held by more than one person evidencing any interest in any bond, note or other obligation of any kind or nature, whether secured or unsecured.

2. The term "bondholder" means the owner of a bond.

3. The term "obligor" includes the obligor of a bond as defined in clause (a) of paragraph one of this section; the obligor of an obligation, interests in which are evidenced by a bond as defined in clause (b) of paragraph one of this section; and the owner of any property securing any bond or any such obligation.

4. The term "trust indenture" means any agreement, conveyance, transfer, mortgage or other instrument, pursuant to which bonds are issued, or which affect the rights of bondholders.

5. The term "trustee" includes any person to whom any property has been transferred as security for an issue; any person who is the obligee or holder of an obligation, interests in which are evidenced by a bond as defined in clause (b) of paragraph one of this section; and any person who, under the terms of a trust indenture, is granted rights or remedies which may be exercised for the benefit of bondholders.

6. The term "default" means any non-compliance for thirty days or more by the obligor with any provision of a bond or of a trust indenture, whether or not under the terms of such bond or such trust indenture such non-compliance is regarded as a default, and whether or not any period of grace or other period prescribed in such bond or such trust indenture as a prerequisite for taking any action has expired.

7. The term "qualified bondholder" means any bondholder who (a) has acquired a bond by purchase before the default or the institution of proceedings which is the basis of an application under section two hundred eighty-six and in any event at least one year before the making of such application, unless such bondholder shall have been an original purchaser or (b) who has acquired a bond by gift or inheritance from a bondholder who acquired the same by purchase before the default or the institution of proceedings which is the basis of an application under section two hundred eighty-six and in any event at least six months before the making of such application; provided, however (a) that such bond was not purchased for the purpose of making such an application; (b) that the list of bondholders shall not be for the purpose of communicating with bondholders in the interests of an object other than the particular indenture securing the issue of bonds; and (c) that such petitioner has not within five years sold or offered for sale any list of stockholders of any corporation, or aided or abetted any person in procuring any stock list for any such purpose or sold or offered for sale any list of bondholders of any obligor or aided or abetted any person in procuring such a list for any such purpose.


Last modified: February 3, 2019