### Tung Chung Cable Car Ordinance 《東涌吊車條例》

25. Defaults capable of remedy
(1) This section applies in the case of a default which appears to the Secretary to be capable of being remedied.
(2) In the case of a default to which this section applies, the Secretary shall serve a notice requiring the Company to remedy the default or to take measures or make arrangements to the satisfaction of the Secretary to ensure that the default is remedied.
(3) A notice under subsection (2) shall specify a period within which the default must be remedied, being a period reasonable in the circumstances and in any event not less than 28 days.
(4) If the Company considers that it will need more time to remedy the default than is specified in the notice under subsection (2), it may in writing apply to the Secretary for an extension of the time, with reasons, and the Secretary may allow such further time as appears to the Secretary to be reasonable in the circumstances.
(5) If there is a guarantee agreement, a notice under subsection (2) shall be served—
(a) in the case of a default arising before the discharge date, on the Company, the guarantors and any agent appointed under subsection (6);
(b) in the case of a default arising on or after the discharge date, on the Company and any agent appointed under subsection (6).
(6) Any financier or, if a financier is a member of a consortium of financiers, the consortium, may appoint an agent in Hong Kong for the purpose of subsection (5) and shall notify the Secretary of the name and address in Hong Kong of the agent for the purpose of service of a notice under that subsection.
(7) The arrangements referred to in subsection (2) may include arrangements for the disposal of the rights and obligations of the Company to another person in accordance with section 5.

### Tung Chung Cable Car Ordinance 《東涌吊車條例》

27. Order of revocation
(1) If satisfied—
(a) that the procedure prescribed by section 26 has been followed;
(b) that sufficient cause has not been shown why an order under this section should not be made; and
(c) that it is just and reasonable to do so,
the Chief Executive in Council may, subject to subsection (3), by order revoke the franchise.
(2) In exercising the power under subsection (1), the Chief Executive in Council shall take into consideration—
(a) the extent to which the default was or is occasioned by circumstances beyond the control of the Company;
(b) any representations made under section 26(8).
(3) If the proposed revocation relates to a matter in respect of which arbitration proceedings have commenced, the Chief Executive in Council shall not make an order under subsection (1) until the determination or, where appropriate, the abandonment of the arbitration proceedings.
(4) An order made under subsection (1) shall be served—
(a) if there is a guarantee agreement and the default arises prior to the discharge date, on the Company and the guarantors;
(b) in any other case, on the Company.
(5) An order made under subsection (1) shall be published in the Gazette as soon as practicable after being made but shall take effect on the date specified in the order.
(6) Section 34 of the Interpretation and General Clauses Ordinance (Cap. 1) does not apply to an order made under subsection (1).
(7) If the franchise is revoked under subsection (1), the Chief Executive in Council may by order designate another body corporate as the Company for the purposes of this Ordinance, on such terms and conditions, consistent with this Ordinance, as the Chief Executive in Council thinks fit, and upon the publication of that order in the Gazette the franchise vests in that body corporate.
(8) Upon the publication of an order under subsection (7), Schedule 1 to the Prevention of Bribery Ordinance (Cap. 201) is deemed to be amended—
(a) to remove the Company whose franchise has been revoked (unless it is the MTR Corporation Limited); and
(b) to include the body corporate designated under subsection (7).

### Tung Chung Cable Car Ordinance 《東涌吊車條例》

28. Termination of franchise
(1) Except to the extent necessary to give effect to sections 29 and 30, the franchise and all rights and obligations of the Company under this Ordinance terminate on—
(a) the commencement of the voluntary winding up of the Company;
(b) the making of a winding-up order in respect of the Company;
(c) the revocation of the franchise under section 27; or
(d) the expiry of the franchise period,
whichever first occurs.
(2) Upon the termination of the franchise, the assets of the Company referred to in section 32, together with the easements created by sections 10(1) and 11 and the rights conferred by sections 6, 7, 8 and 14, vest in the Government, but upon the designation of a body corporate as the Company under section 27(7), they vest in that body corporate without further order.

### Tung Chung Cable Car Ordinance 《東涌吊車條例》

29. Consequences of termination
(1) Upon the termination of the franchise, the Company remains liable for—
(a) effecting any repairs to the assets which the Secretary considers are reasonably required and of which the Secretary has given written notice to the Company in accordance with subsection (3);
(b) settling accounts with the Government in respect of royalty payable under section 16 and any other sums payable to the Government under the Project Agreement;
(c) payment of compensation arising from entry on land by the Company pursuant to section 14;
(d) any other obligations of the Company under this Ordinance or the Project Agreement which have not been satisfied and of which the Secretary has given written notice to the Company not less than 30 days before the termination.
(2) Upon the termination of the franchise, the Company shall—
(a) if the construction works are not complete, bring the incomplete construction works, and the land on which they are situated, to a satisfactory condition in order to enable the construction works either to be continued or abandoned, as the Government decides;
(b) if the construction works are complete, ensure that the Cable Car System is in a safe condition so that it can be operated commercially by the Government or another person.
(3) A notice of repairs given under subsection (1)(a) shall—
(a) be given not less than 30 days before the termination;
(b) specify a time within which the repairs are to be effected, being a time reasonable in the circumstances.
(4) If the Company fails to discharge its obligations under subsection (1)(a) or (d) or (2), the Government may perform them and the Company becomes liable to pay the expenses reasonably incurred by the Government in so doing.
(5) If the termination of the franchise arises under section 28(1)(a), (b) or (c), the Government shall pay to the Company, in respect of the assets of the Company which vest in the Government under section 28(2), an amount, calculated in accordance with the Project Agreement, which represents the residual value of those assets at the time of the vesting.
(6) In determining the value of the assets for the purpose of subsection (5), there shall be deducted from what would otherwise be the residual value of those assets—
(a) any sums payable to the Government under subsection (1)(b);
(b) any costs reasonably incurred by the Government as a result of or incidental to the termination of the franchise, including but not limited to the expenses referred to in subsection (4).
(7) Any dispute between the Company and the Government as to—
(a) the amount, if any, payable by the Company to the Government under subsection (1) or (4); or
(b) the amount, if any, payable by the Government to the Company under subsection (5),
if not resolved by mutual agreement or mediation, is to be resolved by arbitration as provided for in the Project Agreement.