State Codes and Statutes
Statutes > Virginia > Title-56 > Chapter-20 > 56-549§ 56-549. Default.
In the event of material and continuing default in the performance of theoperator's construction or operation duties or failure of the operator tocomply with the terms of its agreement with the Department, in either case,after notice thereof and an opportunity to cure, or in the event thatconstruction has not begun within two years of the issuance of a certificate,the Commission, after a hearing in which the applicant or operator has noticeand opportunity to participate, may revoke the certificate of authority forthe roadway, declare a default in the construction or operation of theroadway, and make or cause to be made the appropriate claim or claims underany completion or performance bonds, or take such other action as it may deemappropriate under the circumstances. The Department may participate in orinitiate such proceedings. In case of revocation of a certificate, theapplicant or operator shall thereafter be without any authority to constructor operate the roadway, and the Department may take over construction andoperation of the roadway, and may proceed thereafter to take any steps whichare in the public interest, including completion of construction or additionsto the roadway, closing the roadway, or any intermediate step. The Departmentshall receive the full proceeds of any payments due to claims against bondingcompanies or sureties for this purpose. In addition, in such event, theoperator shall grant to the Department all of its right, title and interestin the assets of the operator. Nothing herein shall be construed to limit theDepartment's exercise of the power of eminent domain. In either case, theoperator may obtain compensation from the Department for such assets, exceptthat the Department shall first deduct from the value of such assets all ofits costs incurred in connection with completion or fulfillment of theunperformed obligations of the operator including the payment of anyobligations assumed by the Department, and any other costs associated withthe events contemplated in this section. The Department shall take intoaccount moneys received from the proceeds of any payment or completion bondin calculating the amount due the operator.
(1988, c. 649; 1991, c. 272.)
