NAC706.359. Temporary transfer of operating rights.

     1. A temporary transfer of operating rights may be approved if the Authority finds it is in the public interest.

     2. Applicants who seek approval of a temporary transfer of operating rights for a limited period, whether by lease, operating contract or otherwise, must state in their application the circumstances which makes the transfer necessary, the specified period for which the transfer is sought, the consideration for the transfer, the time and method of payment and that the applicants have agreed in writing that all operating rights involved in the transaction revert to the transferor at the expiration of the term, or upon a discontinuance of operations by the transferee at any time before the expiration of the term. In case of reversion, the transferor shall give immediate notice to the Authority. It must be further stipulated by the applicants that the transferee will be responsible for furnishing all reports required by the Authority.

     3. Unless unusual circumstances are involved, an application for the transfer of operating rights for a limited time will not be approved for a period of less than 30 days, nor longer than 2 years, during which time the parties will be expected to consider and determine whether they want to enter into a permanent transaction of sale and purchase of the rights. Nothing in this section may be construed as approving a sale and purchase of operating rights in advance of an application.

     [Pub. Service Comm’n, Gen. Order 5 Rule 219, eff. 12-1-62]—(NAC A 9-1-87; A by Transportation Serv. Auth. by R071-98, 10-28-98)