Rights of Department Upon Material Default by an Operator

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Section 66. (a) Upon the occurrence and during the continuation of a material default by an operator, not caused by an event of force majeure, and upon the failure by the contractor or its financing institution on the contractor's behalf, to cure such material default within 30 days of written notice of such default by the department, the department may:

(1) elect to take over the transportation facility, including the succession of all right, title and interest in the transportation facility; and

(2) terminate the public-private agreement and exercise any other rights and remedies available.

(b) In the event that the department elects to take over a transportation facility under subsection (a), the department:

(1) shall make interim payments, on behalf of the contractor and for the contractor's account, of any amounts subject to a mechanics lien law of the commonwealth;

(2) may develop and operate the transportation facility, impose user fees for the use of the transportation facility and comply with any service contracts; and

(3) may solicit proposals for the maintenance and operation of the transportation facility under section 63.


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