1964_EASTERN_HARBOUR_CROSSING_ORDINANCE — Page 37

36

CAP. 215]

Eastern Harbour Crossing

[1986 Ed.

(Cap. 6.)

Defaults capable of remedy.

(iv) the guarantors, having been called upon under the guarantee agreement-

(A) fail to respond to such call within a reasonable

period of time; or

(B) are in material breach of any of the provisions of

the guarantee agreement;

(b) the Rail Company shall be deemed to be in default if—

(i) it fails to transfer to the Mass Transit Railway Corporation the rights granted to it under section 5(1)(b) and (c) in accordance with section 8; or

(ii) there has been a substantial failure by it to comply with its obligations under the operating agreement;

(c) the Road Company or the Rail Company, as the case may

be, shall be deemed to be in default if—

(i) there has been a substantial failure by it to comply with any of the provisions of this Ordinance; or

(ii) it commits an act of bankruptcy within the meaning of section 3 of the Bankruptcy Ordinance; or

(iii) it fails to comply with a notice under section 68,

and the expression "default" shall be construed accordingly.

68. (1) This section shall apply in the case of any default where it appears to the Secretary that the default is capable of being remedied.

(2) In the case of any default to which this section applies, the Secretary shall serve-

(a) in the case of a default prior to the discharge date, on-

(i) the Road Company;

(ii) the guarantors; and

(iii) any agent nominated under subsection (3); and

(b) in the case of a default on or after the discharge date, on-

(i) the company in default; and

(ii) any agent nominated under subsection (3),

a notice calling upon the company in default, within such time as may be specified in the notice or such further time as the Secretary may allow, being a time reasonable in the circumstances to remedy the default or to take measures or make arrangements to the satisfaction of the Secretary to ensure that such default is remedied:

Provided that such time shall not be less than 28 days.

(3) Any financier or, where a financier is a member of a consortium of financiers, that consortium, may, for the purposes of subsection (2), at any time nominate to the Secretary an agent and specify an address for service of that agent in Hong Kong.