                                 CODE OF VIRGINIA

DEFAULT (§ 56-549)

In the event of material and continuing default in the performance of the
operator&#8217;s construction or operation duties or failure of the operator to
comply with the terms of its agreement with the Department, in either case,
after notice thereof and an opportunity to cure, or in the event that
construction has not begun within two years of the issuance of a certificate,
the Commission, after a hearing in which the applicant or operator has notice
and opportunity to participate, may revoke the certificate of authority for the
roadway, declare a default in the construction or operation of the roadway, and
make or cause to be made the appropriate claim or claims under any completion or
performance bonds, or take such other action as it may deem appropriate under
the circumstances. The Department may participate in or initiate such
proceedings. In case of revocation of a certificate, the applicant or operator
shall thereafter be without any authority to construct or operate the roadway,
and the Department may take over construction and operation of the roadway, and
may proceed thereafter to take any steps which are in the public interest,
including completion of construction or additions to the roadway, closing the
roadway, or any intermediate step. The Department shall receive the full
proceeds of any payments due to claims against bonding companies or sureties for
this purpose. In addition, in such event, the operator shall grant to the
Department all of its right, title and interest in the assets of the operator.
Nothing herein shall be construed to limit the Department&#8217;s exercise of
the power of eminent domain. In either case, the operator may obtain
compensation from the Department for such assets, except that the Department
shall first deduct from the value of such assets all of its costs incurred in
connection with completion or fulfillment of the unperformed obligations of the
operator including the payment of any obligations assumed by the Department, and
any other costs associated with the events contemplated in this section. The
Department shall take into account moneys received from the proceeds of any
payment or completion bond in calculating the amount due the operator.

HISTORY: 1988, c. 649; 1991, c. 272.