### Mass Transit Railway Ordinance 《香港鐵路條例》

15B. Rights to have access to and use Corporation Common Property and KCRC Common Property upon suspension of franchise
(1) Where the franchise is suspended under section 15(1) (whether wholly or in part), the Government, its nominee or a third party designated by the Government may have access to any Corporation Common Property and KCRC Common Property which is not taken possession of under section 15(5), and may use such Corporation Common Property and KCRC Common Property in the operation of the service and the TSA bus service to the extent that they are covered by the suspension in accordance with the provisions of the operating agreement relating to such use.
(2) Where any part of the franchise is suspended under section 15(1), the Corporation may have access to any Corporation Common Property and KCRC Common Property which is taken possession of under section 15(5), and may use such Corporation Common Property and KCRC Common Property in the operation of the service and the TSA bus service to the extent that they are not covered by the suspension in accordance with the provisions of the operating agreement relating to such use.
(Added 11 of 2007 s. 11)

### Mass Transit Railway Ordinance 《香港鐵路條例》

16. Default under franchise
(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)
and the expression default shall be construed accordingly. (Amended 11 of 2007 s. 12)
(2) For the purposes of subsection (1), there has been a major breach by the Corporation of the Service Concession Agreement if the Corporation—
(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)

### Mass Transit Railway Ordinance 《香港鐵路條例》

17. Defaults capable of remedy
(1) Where it appears to the Secretary that the Corporation is in default, and that the default is one which is capable of being remedied, the Secretary may serve on the Corporation a notice calling upon the Corporation—
(a) to remedy the default or to take measures or make arrangements to the satisfaction of the Secretary to ensure that the default is remedied; and
(b) to do so within the period specified in the notice, being a period that is reasonable in the circumstances, or within a further period as the Secretary may allow.
(2) Unless the circumstances require otherwise, the period specified in a notice served under subsection (1) shall be a period of 28 days or more.
(3) A default committed by reason of section 16(1)(c) shall not be regarded as one which is capable of being remedied for the purposes of subsection (1), and no notice shall be served under that subsection in respect of such a default. (Added 11 of 2007 s. 13)

### Mass Transit Railway Ordinance 《香港鐵路條例》

19. Use of railway property by Government
(1) Where the franchise is revoked under section 18 or has expired and has not been extended under section 5, the Government, its nominee or a third party designated by the Government may take possession of any property which at the time of such revocation or expiry is property used or kept by the Corporation for the purposes of or in connection with the franchise and may use that property in the operation of the railway as it thinks fit.
(2) Property taken possession of under subsection (1) may be retained—
(a) for an initial period not exceeding 2 years, as may be determined by the Chief Executive in Council; and
(b) for such further successive periods not exceeding 6 months each as the Chief Executive in Council may determine,
and notice of any such determination shall be published in the Gazette.
(3) Subject to subsections (4) and (5), at any time during or upon the expiry of a period of retention under this section, property taken possession of under subsection (1) may be returned to the Corporation or may be otherwise disposed of in a manner and upon terms the Chief Executive in Council may think fit.
(4) At any time during the period for which any property is retained under subsection (2), the Corporation may by notice in writing to the Secretary inform the Government that the Corporation does not wish the property to be returned to the Corporation, and in that case the Government is not entitled to return the property to the Corporation under subsection (3).
(5) The right conferred under subsection (1) to take possession of property and to use that property in the operation of the railway includes the right to keep or maintain the property in whatever condition, or to alter the property in whatever manner, is considered appropriate for that purpose and, without affecting any entitlement to compensation under section 20, nothing in this Ordinance or any other law imposes on the Government any obligation in relation to the condition in which property taken under subsection (1) is to be kept or returned.
(6) For the purpose of, and to the extent necessary to effect, the disposal under subsection (3) of any property taken possession of under subsection (1) (and for that purpose and to that extent only), title in the property is deemed to be vested in the Government.