Chapter:	556	Title:	MASS TRANSIT RAILWAY ORDINANCE	Gazette Number:	L.N. 200 of 2007
Section:	16	Heading:	Default under franchise	Version Date:	02/12/2007

(1) For the purposes of sections 17 and 18, the Corporation is in default under the franchise if- (Amended 11 of 2007 s. 12)

(a) any of the following occurs- (Amended 11 of 2007 s. 12)
(i) there has been a substantial failure by the Corporation to discharge an obligation under the operating agreement;
(ii) the Corporation has failed or there is a likelihood of its failing substantially to operate the railway in accordance with this Ordinance; or
(iii) there has been a substantial failure by the Corporation to discharge an obligation under the Service Concession Agreement which does not amount to a major breach of the Service Concession Agreement, (Added 11 of 2007 s. 12)
and the failure (or likely failure) results in or is likely to result in-
(A) a substantial breakdown of the service;
(B) the safety of persons travelling on the railway or being on the railway premises being endangered in a manner likely to result in serious injury to those persons; or
(C) serious injury to or the death of persons travelling on the railway or being on the railway premises; or
(b) a voluntary winding up of the Corporation is commenced or a winding up order in respect of the Corporation is made; or
(c) there has been a major breach by the Corporation of the Service Concession Agreement, (Added 11 of 2007 s. 12)

(a) makes any default in payment under the Service Concession Agreement;
(b) contravenes any restriction imposed under the Service Concession Agreement on the disposal of the Concession Property; or
(c) contravenes any prohibition imposed under the Service Concession Agreement on the creation of security over the Concession Property. (Added 11 of 2007 s. 12)