{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-575.11.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-575.11.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-575.11.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-575.11.html"}],"law_id":56009,"edition_id":1,"section_id":56009,"structure_id":13265,"section_number":"56-575.11","catch_line":"Material default; remedies","history":"2002, c. 571; 2003, c. 1034; 2005, c. 865.","full_text":"A\n\nIn the event of a material default by the private entity, the responsible public entity may elect to assume the responsibilities and duties of the private entity of the qualifying project, and in such case, it shall succeed to all of the right, title and interest in such qualifying project, subject to any liens on revenues previously granted by the private entity to any person providing financing thereof.B\n\nAny responsible public entity having the power of condemnation under state law may exercise such power of condemnation to acquire the qualifying project in the event of a material default by the private entity. Any person who has provided financing for the qualifying project, and the private entity, to the extent of its capital investment, may participate in the condemnation proceedings with the standing of a property owner.C\n\nThe responsible public entity may terminate, with cause, the interim or comprehensive agreement and exercise any other rights and remedies that may be available to it at law or in equity.D\n\nThe responsible public entity may make or cause to be made any appropriate claims under the maintenance, performance, or payment bonds; or lines of credit required by subsection A 1 of § 56-575.9.E\n\nIn the event the responsible public entity elects to take over a qualifying project pursuant to subsection A, the responsible public entity may develop or operate the qualifying project, impose user fees, impose and collect lease payments for the use thereof and comply with any service contracts as if it were the private entity. Any revenues that are subject to a lien shall be collected for the benefit of and paid to secured parties, as their interests may appear, to the extent necessary to satisfy the private entity’s obligations to secured parties, including the maintenance of reserves. Such liens shall be correspondingly reduced and, when paid off, released. Before any payments to, or for the benefit of, secured parties, the responsible public entity may use revenues to pay current operation and maintenance costs of the qualifying project, including compensation to the responsible public entity for its services in operating and maintaining the qualifying project. The right to receive such payment, if any, shall be considered just compensation for the qualifying project. The full faith and credit of the responsible public entity shall not be pledged to secure any financing of the private entity by the election to take over the qualifying project. Assumption of operation of the qualifying project shall not obligate the responsible public entity to pay any obligation of the private entity from sources other than revenues.","order_by":null,"text":{"0":{"id":205266,"text":"In the event of a material default by the private entity, the responsible public entity may elect to assume the responsibilities and duties of the private entity of the qualifying project, and in such case, it shall succeed to all of the right, title and interest in such qualifying project, subject to any liens on revenues previously granted by the private entity to any person providing financing thereof.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":205267,"text":"Any responsible public entity having the power of condemnation under state law may exercise such power of condemnation to acquire the qualifying project in the event of a material default by the private entity. Any person who has provided financing for the qualifying project, and the private entity, to the extent of its capital investment, may participate in the condemnation proceedings with the standing of a property owner.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":205268,"text":"The responsible public entity may terminate, with cause, the interim or comprehensive agreement and exercise any other rights and remedies that may be available to it at law or in equity.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":205269,"text":"The responsible public entity may make or cause to be made any appropriate claims under the maintenance, performance, or payment bonds; or lines of credit required by subsection A 1 of § 56-575.9.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":205270,"text":"In the event the responsible public entity elects to take over a qualifying project pursuant to subsection A, the responsible public entity may develop or operate the qualifying project, impose user fees, impose and collect lease payments for the use thereof and comply with any service contracts as if it were the private entity. Any revenues that are subject to a lien shall be collected for the benefit of and paid to secured parties, as their interests may appear, to the extent necessary to satisfy the private entity’s obligations to secured parties, including the maintenance of reserves. Such liens shall be correspondingly reduced and, when paid off, released. Before any payments to, or for the benefit of, secured parties, the responsible public entity may use revenues to pay current operation and maintenance costs of the qualifying project, including compensation to the responsible public entity for its services in operating and maintaining the qualifying project. The right to receive such payment, if any, shall be considered just compensation for the qualifying project. The full faith and credit of the responsible public entity shall not be pledged to secure any financing of the private entity by the election to take over the qualifying project. Assumption of operation of the qualifying project shall not obligate the responsible public entity to pay any obligation of the private entity from sources other than revenues.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D"}},"ancestry":[{"id":13265,"edition_id":1,"name":"The Public-Private Education Facilities and Infrastructure Act of 2002","identifier":"22.1","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:33","date_modified":"2026-06-26 03:44:33","permalink":{"id":250511,"object_type":"structure","relational_id":13265,"identifier":"22.1","token":"56\/22.1","url":"\/56\/22.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12881,"edition_id":1,"name":"Public Service Companies","identifier":"56","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 03:43:58","permalink":{"id":248473,"object_type":"structure","relational_id":12881,"identifier":"56","token":"56","url":"\/56\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":54549,"structure_id":13265,"section_number":"56-575.1","catch_line":"Definitions","url":"\/56-575.1\/","token":"56\/22.1\/56-575.1","metadata":false},{"id":54274,"structure_id":13265,"section_number":"56-575.10","catch_line":"Federal, state and local assistance","url":"\/56-575.10\/","token":"56\/22.1\/56-575.10","metadata":false},{"id":56009,"structure_id":13265,"section_number":"56-575.11","catch_line":"Material default; remedies","url":"\/56-575.11\/","token":"56\/22.1\/56-575.11","metadata":false},{"id":87080,"structure_id":13265,"section_number":"56-575.12","catch_line":"Condemnation","url":"\/56-575.12\/","token":"56\/22.1\/56-575.12","metadata":false},{"id":82966,"structure_id":13265,"section_number":"56-575.13","catch_line":"Utility crossing","url":"\/56-575.13\/","token":"56\/22.1\/56-575.13","metadata":false},{"id":81141,"structure_id":13265,"section_number":"56-575.14","catch_line":"Police powers; violations of law","url":"\/56-575.14\/","token":"56\/22.1\/56-575.14","metadata":false},{"id":73223,"structure_id":13265,"section_number":"56-575.15","catch_line":"Sovereign immunity","url":"\/56-575.15\/","token":"56\/22.1\/56-575.15","metadata":false},{"id":63083,"structure_id":13265,"section_number":"56-575.16","catch_line":"Procurement","url":"\/56-575.16\/","token":"56\/22.1\/56-575.16","metadata":false},{"id":80943,"structure_id":13265,"section_number":"56-575.17","catch_line":"Posting of conceptual proposals; public comment; public access to procurement records","url":"\/56-575.17\/","token":"56\/22.1\/56-575.17","metadata":false},{"id":77861,"structure_id":13265,"section_number":"56-575.17:1","catch_line":"Contributions and gifts; prohibition during approval process","url":"\/56-575.17_1\/","token":"56\/22.1\/56-575.17_1","metadata":false},{"id":71889,"structure_id":13265,"section_number":"56-575.18","catch_line":"Auditor of Public Accounts","url":"\/56-575.18\/","token":"56\/22.1\/56-575.18","metadata":false},{"id":79879,"structure_id":13265,"section_number":"56-575.2","catch_line":"Declaration of public purpose","url":"\/56-575.2\/","token":"56\/22.1\/56-575.2","metadata":false},{"id":62611,"structure_id":13265,"section_number":"56-575.3","catch_line":"Prerequisite for operation of a qualifying project","url":"\/56-575.3\/","token":"56\/22.1\/56-575.3","metadata":false},{"id":80801,"structure_id":13265,"section_number":"56-575.3:1","catch_line":"Adoption of guidelines by responsible public entities","url":"\/56-575.3_1\/","token":"56\/22.1\/56-575.3_1","metadata":false},{"id":78855,"structure_id":13265,"section_number":"56-575.4","catch_line":"Approval of qualifying projects by the responsible public entity","url":"\/56-575.4\/","token":"56\/22.1\/56-575.4","metadata":false},{"id":54265,"structure_id":13265,"section_number":"56-575.5","catch_line":"Service contracts","url":"\/56-575.5\/","token":"56\/22.1\/56-575.5","metadata":false},{"id":71324,"structure_id":13265,"section_number":"56-575.6","catch_line":"Affected local jurisdictions","url":"\/56-575.6\/","token":"56\/22.1\/56-575.6","metadata":false},{"id":83102,"structure_id":13265,"section_number":"56-575.7","catch_line":"Dedication of public property","url":"\/56-575.7\/","token":"56\/22.1\/56-575.7","metadata":false},{"id":58668,"structure_id":13265,"section_number":"56-575.8","catch_line":"Powers and duties of the private entity","url":"\/56-575.8\/","token":"56\/22.1\/56-575.8","metadata":false},{"id":70640,"structure_id":13265,"section_number":"56-575.9","catch_line":"Comprehensive agreement","url":"\/56-575.9\/","token":"56\/22.1\/56-575.9","metadata":false},{"id":86484,"structure_id":13265,"section_number":"56-575.9:1","catch_line":"Interim agreement","url":"\/56-575.9_1\/","token":"56\/22.1\/56-575.9_1","metadata":false}],"previous_section":{"id":54274,"structure_id":13265,"section_number":"56-575.10","catch_line":"Federal, state and local assistance","url":"\/56-575.10\/","token":"56\/22.1\/56-575.10","metadata":false},"next_section":{"id":87080,"structure_id":13265,"section_number":"56-575.12","catch_line":"Condemnation","url":"\/56-575.12\/","token":"56\/22.1\/56-575.12","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-575.11\/","history_text":"

This law was first created in 2002. The record of its establishment is cataloged in chapter 571<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2003, chapter 1034<\/a>; in 2005, chapter 865<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":250521,"object_type":"law","relational_id":56009,"identifier":"56-575.11","token":"56\/22.1\/56-575.11","url":"\/56-575.11\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-575.11\/","token":"56\/22.1\/56-575.11","dublin_core":{"Title":"Material default; remedies","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-575.11","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In the event of a material default<\/span> by the private entity<\/span>, the responsible public entity<\/span> may elect to assume the responsibilities and duties of the private entity<\/span> of the qualifying project<\/span>, and in such case, it shall succeed to all of the right, title and interest in such qualifying project<\/span>, subject to any liens<\/span> on revenues<\/span> previously granted by the private entity<\/span> to any person<\/span> providing financing thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any responsible public entity<\/span> having the power of condemnation under state<\/span> law<\/span> may exercise such power of condemnation to acquire the qualifying project<\/span> in the event of a material default<\/span> by the private entity<\/span>. Any person<\/span> who has provided financing for the qualifying project<\/span>, and the private entity<\/span>, to the extent of its capital investment, may participate in the condemnation proceedings with the standing of a property owner. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The responsible public entity<\/span> may terminate, with cause, the interim or comprehensive agreement<\/span> and exercise any other rights and remedies that may be available to it at law<\/span> or in equity<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The responsible public entity<\/span> may make or cause to be made any appropriate claims under the maintenance, performance, or payment bonds<\/span>; or lines of credit required by subsection A 1 of § 56-575.9<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> In the event the responsible public entity<\/span> elects to take over a qualifying project<\/span> pursuant to subsection A, the responsible public entity<\/span> may develop<\/span> or operate<\/span> the qualifying project<\/span>, impose user fees<\/span>, impose and collect lease payments<\/span> for the use thereof and comply with any service contracts<\/span> as if it were the private entity<\/span>. Any revenues<\/span> that are subject to a lien<\/span> shall be collected for the benefit of and paid to secured parties, as their interests may appear, to the extent necessary to satisfy the private entity<\/span>’s obligations to secured parties, including the maintenance of reserves. Such liens<\/span> shall be correspondingly reduced and, when paid off, released. Before any payments to, or for the benefit of, secured parties, the responsible public entity<\/span> may use revenues<\/span> to pay current operation and maintenance costs of the qualifying project<\/span>, including compensation to the responsible public entity<\/span> for its services in operating and maintaining the qualifying project<\/span>. The right to receive such payment, if any, shall be considered just compensation for the qualifying project<\/span>. The full faith and credit of the responsible public entity<\/span> shall not be pledged to secure any financing of the private entity<\/span> by the election to take over the qualifying project<\/span>. Assumption of operation of the qualifying project<\/span> shall not obligate the responsible public entity<\/span> to pay any obligation of the private entity<\/span> from sources other than revenues<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMATERIAL DEFAULT; REMEDIES (\u00a7 56-575.11)\n\nA. In the event of a material default by the private entity, the responsible\npublic entity may elect to assume the responsibilities and duties of the private\nentity of the qualifying project, and in such case, it shall succeed to all of\nthe right, title and interest in such qualifying project, subject to any liens\non revenues previously granted by the private entity to any person providing\nfinancing thereof.\n\nB. Any responsible public entity having the power of condemnation under state\nlaw may exercise such power of condemnation to acquire the qualifying project in\nthe event of a material default by the private entity. Any person who has\nprovided financing for the qualifying project, and the private entity, to the\nextent of its capital investment, may participate in the condemnation\nproceedings with the standing of a property owner.\n\nC. The responsible public entity may terminate, with cause, the interim or\ncomprehensive agreement and exercise any other rights and remedies that may be\navailable to it at law or in equity.\n\nD. The responsible public entity may make or cause to be made any appropriate\nclaims under the maintenance, performance, or payment bonds; or lines of credit\nrequired by subsection A 1 of § 56-575.9.\n\nE. In the event the responsible public entity elects to take over a qualifying\nproject pursuant to subsection A, the responsible public entity may develop or\noperate the qualifying project, impose user fees, impose and collect lease\npayments for the use thereof and comply with any service contracts as if it were\nthe private entity. Any revenues that are subject to a lien shall be collected\nfor the benefit of and paid to secured parties, as their interests may appear,\nto the extent necessary to satisfy the private entity’s obligations to\nsecured parties, including the maintenance of reserves. Such liens shall be\ncorrespondingly reduced and, when paid off, released. Before any payments to, or\nfor the benefit of, secured parties, the responsible public entity may use\nrevenues to pay current operation and maintenance costs of the qualifying\nproject, including compensation to the responsible public entity for its\nservices in operating and maintaining the qualifying project. The right to\nreceive such payment, if any, shall be considered just compensation for the\nqualifying project. The full faith and credit of the responsible public entity\nshall not be pledged to secure any financing of the private entity by the\nelection to take over the qualifying project. Assumption of operation of the\nqualifying project shall not obligate the responsible public entity to pay any\nobligation of the private entity from sources other than revenues.\n\nHISTORY: 2002, c. 571; 2003, c. 1034; 2005, c. 865.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}