Article 6. Remedies Of Debenture Holders of California Military And Veterans Code >> Division 4. >> Chapter 7. >> Article 6.
The holder of any debenture may by mandamus or other
appropriate proceedings compel the performance of any of the duties
imposed upon any state official or employee or imposed upon the
department or its officers, agents or employees with respect to the
collection of revenues from pledged contracts entered into by the
department with veterans, and the investment and disbursement of the
proceeds received from the sale of debentures.
The department may in any resolution of issuance define the
events of default including among others default in the payment of
the principal or interest upon or premium due upon any debentures or
default by the department in the observance of any of the covenants,
agreements or conditions on its part to be performed under the
resolution of issuance and may provide that upon the happening of any
such event of default the holders of not less than the majority in
aggregate principal amount of the debentures at the time outstanding
will be entitled to declare the principal of all of the debentures
then outstanding and the interest accrued thereon to be immediately
due and payable.
Whenever a bank or trust company is acting as trustee by
reason of any default, or for the protection of the interests of the
debenture holders, the bank or trust company as such trustee, shall
take such action as the holders or registered owners of 20 percent in
principal amount of all the debentures then outstanding shall
request in writing, provided that the bank or trust company as such
trustee may request reasonable security before taking any action so
No remedy conferred upon or reserved to the holders of
debentures is intended to be exclusive of any other remedy or
remedies now or hereafter provided by law and each and every such
remedy shall be cumulative and shall be in addition to every other
remedy given under this chapter or now or hereafter existing at law
or in equity or by statute or otherwise.
While any of the debentures remain outstanding the powers,
duties or existence of the department and of every other official or
agency of the State of California shall not be diminished or impaired
in any manner that will adversely affect the interests and rights of
the holders of the debentures.