into line with the provisions of both the Mass Transit Railway Corporation Ordinance (chapter 270) and the Memorandum of Understanding between Government and the MTRC, the provisions of which will apply to the railway works from the rail operating date.
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HIMZAVAR
Clauses 65 provides that from the rail operating date (and the coming into force of the Rail Operating Agreement) the provisions of the Mass Transit Railway Corporation Ordinance (chapter 270) shall apply
the railway. Clause 66 provides that the MTRC shall be charged for use of the railway works by the Rail Company.
Part XII: Default and Expiration of the Franchises
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Clause 67 specifies the conditions under which the Road Company, the Rail Company are deemed to be in default.
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Clause 68 specifies the procedures to be followed in the event of default. The purpose is to allow the creditors to be given first option to take remedial steps in the event of default to protect their interest by overcoming the cause of default. Clause 69(4) (b) provides that a default taking place prior to the road and rail operating dates may result in the revocation of both franchises by the Governor-in-Council. After the road and rail operating dates default of one franchise
franchise is not linked to default in the other franchise.
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Clause 70 sets out the circumstances in which rights and obligations of the Road Company and Rail Company terminate under this Ordinance.
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Clause 71 specifies the liabilities of the Road Company and/or Rail Company on termination of the franchise(s) and for the payment by Government to the Company(ies) of the value of assets acquired by Government. Such amount, in the absence of agreement to be determined by arbitration. No amount shall be payable if revocation results from failure to complete within 42 months or a longer period if allowed. Clause 72 provides that no amount shall be payable upon expiry except
except for the depreciated value of equipment purchased within the five year period prior to expiration with the approval of the Financial Secretary. Clause 73 provides that Government shall not be liable for any debts of the Company (ies) upon the vesting of assets in the Government.
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