                                 CODE OF VIRGINIA

MATERIAL DEFAULT; REMEDIES (§ 33.2-1813)

A. Upon the occurrence and during the continuation of material default, the
responsible public entity may exercise any or all of the following remedies:

   1. The responsible public entity may elect to take over the transportation
   facility or facilities and in such case shall succeed to all of the right,
   title, and interest in such transportation facility or facilities, subject to
   any liens on revenues previously granted by the private entity to any person
   providing financing therefor.

   2. The responsible public entity may terminate the interim or comprehensive
   agreement and exercise any other rights and remedies that may be available at
   law or in equity.

   3. The responsible public entity may make or cause to be made any appropriate
   claims under the performance and/or payment bonds required by &#xA7;
   33.2-1808.

B. In the event the responsible public entity elects to take over a qualifying
transportation facility pursuant to subsection A, the responsible public entity
may develop and/or operate the qualifying transportation facility, impose user
fees 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&#8217;s obligations to
secured parties, including the maintenance of reserves, and 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
transportation facility or facilities, including compensation to the responsible
public entity for its services in operating and maintaining the qualifying
transportation facility. Remaining revenues, if any, after all payments for
operation and maintenance of the transportation facility or facilities, and to,
or for the benefit of, secured parties, have been made, shall be paid to the
private entity, subject to the negotiated maximum rate of return. The right to
receive such payment, if any, shall be considered just compensation for the
transportation facility or facilities. 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 transportation
facility. Assumption of operation of the qualifying transportation facility
shall not obligate the responsible public entity to pay any obligation of the
private entity from sources other than revenues.

HISTORY: 1994, c. 855, § 56-568; 1995, c. 647; 2005, cc. 504, 562; 2014, c.
805.