RS 2084.8 - Public-private partnership projects; material default; remedies
A. Upon occurrence and during the continuation of a material default, the authority may exercise any or all of the following remedies:
(1) The authority may elect to take over the transportation facility or facilities and in such case it 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 authority may terminate the comprehensive agreement and exercise any other rights and remedies which may be available to it in law or in equity.
(3) The authority may make or cause to be made any appropriate claims under the required performance and payment bonds.
B. In the event the authority elects to take over a qualifying transportation facility, the authority shall develop or operate the transportation facility, impose user fees for the use of such facility, and comply with any service contracts. Any revenues 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, and such liens shall be correspondingly reduced and, when paid off, released. Before any payments to or for the benefit of secured parties, the authority may use revenues to pay current operation and maintenance costs of the transportation facility or facilities, including compensation to the authority for its services in operating and maintaining the qualifying transportation facility. Remaining revenues after all payments for operation and maintenance of the transportation facility and payments 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 authority or the state 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 authority or the state to pay any obligation of the private entity from sources other than revenues.
Acts 2006, No. 304, §1.