56-568 - Material default; remedies.
§ 56-568. Material default; remedies.
A. Upon the occurrence and during the continuation of material default, theresponsible public entity may exercise any or all of the following remedies:
1. The responsible public entity may elect to take over the transportationfacility or facilities and in such case it shall succeed to all of the right,title and interest in such transportation facility or facilities, subject toany liens on revenues previously granted by the private entity to any personproviding financing therefor.
2. The responsible public entity may terminate the interim or comprehensiveagreement and exercise any other rights and remedies which may be availableto it at law or in equity.
3. The responsible public entity may make or cause to be made any appropriateclaims under the performance and/or payment bonds required by § 56-566.
B. In the event the responsible public entity elects to take over aqualifying transportation facility pursuant to subsection A, the responsiblepublic entity may develop and/or operate the transportation facility, imposeuser fees for the use thereof and comply with any service contracts as if itwere the private entity. Any revenues that are subject to a lien shall becollected for the benefit of, and paid to, secured parties, as theirinterests may appear, to the extent necessary to satisfy the private entity'sobligations to secured parties, including the maintenance of reserves andsuch liens shall be correspondingly reduced and, when paid off, released.Before any payments to, or for the benefit of, secured parties, theresponsible public entity may use revenues to pay current operation andmaintenance costs of the transportation facility or facilities, includingcompensation to the responsible public entity for its services in operatingand maintaining the qualifying transportation facility. Remaining revenues,if any, after all payments for operation and maintenance of thetransportation facility or facilities, and to, or for the benefit of, securedparties, have been made, shall be paid to the private entity, subject to thenegotiated maximum rate of return. The right to receive such payment, if any,shall be considered just compensation for the transportation facility orfacilities. The full faith and credit of the responsible public entity shallnot be pledged to secure any financing of the private entity by the electionto take over the qualifying transportation facility. Assumption of operationof the qualifying transportation facility shall not obligate the responsiblepublic entity to pay any obligation of the private entity from sources otherthan revenues.
(1994, c. 855; 1995, c. 647; 2005, cc. 504, 562.)