US (United States) Code. Title 45. Chapter 16: Regional rail reorganization

Codificación normativa de EEUU (Estados Unidos). Legislación federal estadounidense # Railroads

  • Enviado por: El remitente no desea revelar su nombre
  • Idioma: inglés
  • País: Estados Unidos Estados Unidos
  • 230 páginas
publicidad
publicidad

-CITE-

45 USC CHAPTER 16 - REGIONAL RAIL REORGANIZATION 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

-HEAD-

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

-MISC1-

SUBCHAPTER I - GENERAL PROVISIONS

Sec.

701. Congressional declaration of policy.

(a) Findings.

(b) Purposes.

702. Definitions.

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

711. Formation and structure.

(a) Establishment.

(b) Administration.

(c) Status.

(d) Board of Directors.

(e) Term of office.

(f) Quorum.

(g) Assumption of Finance Committee functions.

(h) Representation at meetings.

(i) Miscellaneous.

(j) Use of names.

712. Functions of Association.

(a) General.

(b) Investment of funds.

(c) Exemption from taxation.

(d) Reports.

(e) Budget.

(f) Accountability.

(g) Transfer of litigation.

(h) Transfer of other functions.

(i) Monitoring of contractors.

713. Access to information.

714, 715. Omitted or Repealed.

716. Final system plan.

(a) Goals.

(b) Factors.

(c) Designations.

(d) Transfers.

(e) Corporation features.

(f) Value.

(g) Other provisions.

(h) Obligational authority.

(i) Terms and conditions for securities.

(j) Additional properties deemed designated.

717. Adoption of final system plan.

(a) Preliminary system plan.

(b) Approval.

(c) Adoption.

(d) Review of Commission.

718. Review by Congress.

(a) General.

(b) Revised plan.

(c) Computation.

(d) Additions.

719. Judicial review.

(a) General.

(b) Special court.

(c) Delivery of plan to special court.

(d) Bankruptcy courts.

(e) Original and exclusive jurisdiction.

(f) Disposition of cash deposits.

(g) Stay of court proceedings.

720. Obligations of Association.

(a) General.

(b) Maximum obligational authority.

(c) Guarantees.

(d) Validity.

(e) The Secretary of the Treasury.

(f) Authorization for appropriations.

(g) Lawful investments.

721. Loans.

(a) General.

(b) Applications.

(c) Terms and conditions.

(d) Modifications.

(e) Prerequisites.

(f) Policy.

(g) Pre-conveyance loans to Corporation.

(h) Loans for payment of obligations.

722. Records, audit, and examination.

(a) Records.

(b) Audit and examination.

723. Emergency assistance pending implementation.

(a) Emergency assistance.

(b) Authorization of appropriations.

724. Authorization of appropriations.

(a) Secretary.

(b) Office.

(c) Association.

725. Interim agreements.

(a) Purposes.

(b) Conditions.

(c) Obligations.

(d) Conveyance.

726. Debentures and series A preferred stock.

(a) General.

(b) Purposes and procedure for investment.

(c) Finding, direction, and review by Congress.

(d) Terms and conditions.

(e) Modifications, waivers, and conversions.

(f) Employee stock ownership plan.

(g) Authorization of appropriations;

reappropriation of funds.

727. Additional purchases of Series A preferred stock.

(a) Federal investment.

(b) Accounts receivable.

(c) States and localities.

(d) Debentures.

(e) Rights retained.

(f) Authorization of appropriations.

728. Reports to Congress.

(a) Progress and evaluation.

(b) Transfer agreements.

729. Advisory Board.

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

741. Formation and structure.

(a) Establishment.

(b) Status.

(c) Incorporators.

(d) Board of Directors.

(e) Initial capitalization.

(f) Officers.

(g) Voting trustees.

(h) Annual report.

(i) Liability of directors.

(j) Signal systems.

(k) Governing provisions after sale.

742. Powers and duties of Corporation.

743. Valuation and conveyance of rail properties.

(a) Deposit with court.

(b) Conveyance of rail properties.

(c) Findings and distribution.

(d) Appeal.

(e) Transfer and other taxes and recording fees.

744. Termination and continuation of rail services.

(a) Discontinuance.

(b) Abandonment.

(c) Continuation of rail services.

(d) Rail freight service.

(e) Rail passenger service.

(f) Purchase.

(g) Abandonment by Corporation.

(h) Interim abandonment.

(i) Disposition of designated rail properties.

744a. End of Conrail commuter service obligation.

745. Continuing reorganization; supplemental transactions.

(a) Proposals.

(b) Evaluation by Association.

(c) Review by Commission.

(d) Special court proceedings.

(e) "Fair and equitable" defined.

(f) Expedited proposals.

(g) Transfer of properties and freight service

obligations of specific lines.

746. Certificates of value.

(a) General.

(b) Number and distribution.

(c) Redemption.

(d) Authorization of appropriations.

747. Protection of Federal funds.

(a) Audit.

(b) Report.

(c) Monitoring of Corporation.

748. Abandonments.

(a) General.

(b) Applications for abandonment.

(c) Notice of insufficient revenues.

(d) Offers of financial assistance.

(e) Liquidation.

(f) Employee protection.

SUBCHAPTER IV - TRANSFER OF FREIGHT SERVICES

761 to 769c. Repealed.

SUBCHAPTER V - EMPLOYEE PROTECTION

771 to 780. Repealed.

SUBCHAPTER VI - MISCELLANEOUS PROVISIONS

791. Relationship to other laws.

(a) Antitrust.

(b) Commerce, securities, and bankruptcy.

(c) Environment.

(d) Northeast Corridor.

792, 793. Repealed.

794. Tax payments to States.

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

797. Repealed.

797a. Termination allowance.

(a) General.

(b) Employment needs.

(c) Notification and separation procedure.

(d) Designated separations.

(e) Effect on positions.

(f) Procedures.

(g) Commuter employees.

797b. Preferential hiring.

(a) General.

(b) Status.

797c. Central register of railroad employment.

(a) Register.

(b) Corporation employees.

(c) Vacancy notices; warning; civil penalty.

(d) Placement.

(e) Employment applications.

(f) Expiration.

(g) Resolution of disputes.

797d. Election and treatment of benefits.

(a) Election.

(b) Treatment of benefits.

797e. Assignment of work.

(a) General.

(b) Expiration.

797f. Contracting out.

797g. New collective-bargaining agreements.

(a) Agreement.

(b) Procedure.

(c) Railway Labor Act notices.

797h. Employee and personal injury claims.

(a) Liability for employee claims.

(b) Assumption of personal injury claims.

797i. Limitations on liability.

(a) Federal Government.

(b) The Corporation.

797j. Preemption.

797k. Factfinding panel.

(a) Purpose.

(b) National Mediation Board.

(c) Other functions.

797l. Class II railroads receiving Federal assistance.

797m. Arbitration.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 802, 1101, 1341 of this

title; title 49 sections 24901, 24904, 24907.

-End-

-CITE-

45 USC SUBCHAPTER I - GENERAL PROVISIONS 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-

SUBCHAPTER I - GENERAL PROVISIONS

-End-

-CITE-

45 USC Sec. 701 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-

Sec. 701. Congressional declaration of policy

-STATUTE-

(a) Findings

The Congress finds and declares that -

(1) Essential rail service in the midwest and northeast region

of the United States is provided by railroads which are today

insolvent and attempting to undergo reorganization under the

Bankruptcy Act.

(2) This essential rail service is threatened with cessation or

significant curtailment because of the inability of the trustees

of such railroads to formulate acceptable plans for

reorganization. This rail service is operated over rail

properties which were acquired for a public use, but which have

been permitted to deteriorate and now require extensive

rehabilitation and modernization.

(3) The public convenience and necessity require adequate and

efficient rail service in this region and throughout the Nation

to meet the needs of commerce, the national defense, the

environment, and the service requirements of passengers, United

States mail, shippers, States and their political subdivisions,

and consumers.

(4) Continuation and improvement of essential rail service in

this region is also necessary to preserve and maintain adequate

national rail services and an efficient national rail

transportation system.

(5) Rail service and rail transportation offer economic and

environmental advantages with respect to land use, air pollution,

noise levels, energy efficiency and conservation, resource

allocation, safety, and cost per ton-mile of movement to such

extent that the preservation and maintenance of adequate and

efficient rail service is in the national interest.

(6) These needs cannot be met without substantial action by the

Federal Government.

(b) Purposes

It is therefore declared to be the purpose of Congress in this

chapter to provide for -

(1) the identification of a rail service system in the midwest

and northeast region which is adequate to meet the needs and

service requirements of this region and of the national rail

transportation system;

(2) the reorganization of railroads in this region into an

economically viable system capable of providing adequate and

efficient rail service to the region;

(3) the establishment of the United States Railway Association,

with enumerated powers and responsibilities;

(4) the establishment of the Consolidated Rail Corporation,

with enumerated powers and responsibilities;

(5) assistance to States and local and regional transportation

authorities for continuation of local rail services threatened

with cessation; and

(6) necessary Federal financial assistance at the lowest

possible cost to the general taxpayer.

-SOURCE-

(Pub. L. 93-236, title I, Sec. 101, Jan. 2, 1974, 87 Stat. 986.)

-REFTEXT-

REFERENCES IN TEXT

The Bankruptcy Act, referred to in subsec. (a)(1), is act July 1,

1898, ch. 541, 30 Stat. 544, as amended, which was classified

generally to former Title 11, Bankruptcy. The Act was repealed

effective Oct. 1, 1979, by Pub. L. 95-598, Secs. 401(a), 402(a),

Nov. 6, 1978, 92 Stat. 2682, section 101 of which enacted revised

Title 11. For current provisions relating to railroad

reorganization, see subchapter IV (Sec. 1161 et seq.) of chapter 11

of Title 11.

-MISC1-

SHORT TITLE OF 1978 AMENDMENT

Pub. L. 95-565, Sec. 1, Nov. 1, 1978, 92 Stat. 2397, provided:

"That this Act [amending sections 726, 747, and 825 of this title

and section 975 of Title 43, Public Lands, and enacting provision

set out as a note under section 975 of Title 43] may be cited as

the 'United States Railway Association Amendments Act of 1978'."

SHORT TITLE OF 1976 AMENDMENT

Pub. L. 94-555, title II, Sec. 201, Oct. 19, 1976, 90 Stat. 2616,

provided that: "This title [amending sections 702, 711, 716, 720,

721, 743, 744, 771, 774, 775, 779, 823, 824, 825, 826, 829, 831,

and 854 of this title, section 960 of Title 20, Education, sections

1a, 5, 5c, 13, 15, 17, 22, 26c, and 1653 of former Title 49,

Transportation, and enacting provisions set out as notes under

section 80a-3 of Title 15, Commerce and Trade, and sections 1a and

1654 of former Title 49] may be cited as the 'Rail Amendments of

1976'."

SHORT TITLE OF 1975 AMENDMENT

Pub. L. 94-5, Sec. 1, Feb. 28, 1975, 89 Stat. 7, provided: "That

this Act [enacting section 794 of this title and amending sections

712, 715, 716, 717, 721, 723, 725, and 743 of this title] may be

cited as the 'Regional Rail Reorganization Act Amendments of

1975'."

SHORT TITLE

Section 1 of Pub. L. 93-236 provided in part that this Act

[enacting this chapter and amending section 856 of former Title 31,

Money and Finance, and section 1(16) of former Title 49,

Transportation], may be cited as the "Regional Rail Reorganization

Act of 1973".

SEPARABILITY

Section 604 of Pub. L. 93-236 provided that: "If any provision of

this Act [enacting this chapter and amending section 856 of former

Title 31, Money and Finance, and section 1(16) of former Title 49,

Transportation] or the application thereof to any person or

circumstances is held invalid, the remainder of this Act and the

application of such provision to other persons or circumstances

shall not be affected thereby."

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-End-

-CITE-

45 USC Sec. 702 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER I - GENERAL PROVISIONS

-HEAD-

Sec. 702. Definitions

-STATUTE-

As used in this chapter, unless the context otherwise requires -

(1) "Association" means the United States Railway Association,

established under section 711 of this title;

(2) "Commission" means the Interstate Commerce Commission;

(3) "Commuter authority" means any State, local, or regional

authority, corporation, or other entity established for purposes

of providing commuter service, and includes the Metropolitan

Transportation Authority, the Connecticut Department of

Transportation, the Maryland Department of Transportation, the

Southeastern Pennsylvania Transportation Authority, the New

Jersey Transit Corporation, the Massachusetts Bay Transportation

Authority, the Port Authority Trans-Hudson Corporation, any

successor agencies, and any entity created by one or more such

agencies for the purpose of operating, or contracting for the

operation of, commuter service;

(4) "Commuter service" means short-haul rail passenger service

operated in metropolitan and suburban areas, whether within or

across the geographical boundaries of a State, usually

characterized by reduced fare, multiple-ride, and commutation

tickets, and by morning and evening peak period operations;

(5) "Corporation" means the Consolidated Rail Corporation

required to be established under section 741 of this title or its

successor by merger, consolidation or other form of succession

carried out under applicable law for the purpose of changing the

State of its incorporation;

(6) "effective date of the final system plan" means the date on

which the final system plan or any revised final system plan is

deemed approved by Congress, in accordance with section 718 of

this title;

(7) "employee stock ownership plan" means a technique of

corporate finance that uses a stock bonus trust or a company

stock money purchase pension trust which qualifies under section

401(a) of title 26 in connection with the financing of corporate

improvements, transfers in the ownership of corporate assets, and

other capital requirements of a corporation and which is designed

to build beneficial equity ownership of shares in the employer

corporation into its employees substantially in proportion to

their relative incomes, without requiring any cash outlay, any

reduction in pay or other employee benefits, or the surrender of

any other rights on the part of such employees;

(8) "final system plan" means the plan of reorganization for

the restructure, rehabilitation, and modernization of railroads

in reorganization prepared pursuant to section 716 of this title

and approved pursuant to section 718 of this title;

(9) "Finance Committee" means the Finance Committee of the

Board of Directors of the Association established under section

711(i) (!1) of this title;

(10) "includes" and variants thereof should be read as if the

phrase "but is not limited to" were also set forth;

(11) "local or regional transportation authority" includes a

political subdivision of a State.(!2)

(12) "Office" means the Rail Services Planning Office

established under section 10361 (!1) of title 49;

(13) "profitable railroad" means a railroad which is not a

railroad in reorganization. The term does not include the

Corporation, the National Railroad Passenger Corporation, or a

railroad leased, operated, or controlled by a railroad in

reorganization in the region;

(14) "rail properties" means assets or rights owned, leased, or

otherwise controlled by a railroad (or a person owned, leased, or

otherwise controlled by a railroad) which are used or useful in

rail transportation service; except that the term, when used in

conjunction with the phrase "railroads leased, operated, or

controlled by a railroad in reorganization", shall not include

assets or rights owned, leased, or otherwise controlled by a

Class I railroad which is not wholly owned, operated, or leased

by a railroad in reorganization but is controlled by a railroad

in reorganization;

(15) "railroad" means a rail carrier subject to part A of

subtitle IV of title 49. The term includes the Corporation and

the National Railroad Passenger Corporation;

(16) "railroad in reorganization" means a railroad which is

subject to a bankruptcy proceeding and which has not been

determined by a court to be reorganizable or not subject to

reorganization pursuant to this chapter as prescribed in section

717(b) of this title. A "bankruptcy proceeding" includes a

proceeding pursuant to section 77 of the Bankruptcy Act and an

equity receivership or equivalent proceeding;

(17) "Region" means the States of Maine, New Hampshire,

Vermont, Massachusetts, Connecticut, Rhode Island, New York, New

Jersey, Pennsylvania, Delaware, Maryland, Virginia, West

Virginia, Ohio, Indiana, Michigan, and Illinois; the District of

Columbia; and those portions of contiguous States in which are

located rail properties owned or operated by railroads doing

business primarily in the aforementioned jurisdictions (as

determined by the Commission by order);

(17A) "sale date" means the date on which the initial public

offering of the securities of the Corporation is closed under the

Conrail Privatization Act [45 U.S.C. 1301 et seq.];

(18) "Secretary" means the Secretary of Transportation or the

designated representative of the Secretary;

(19) "State" means any State or the District of Columbia;

(20) "subsidiary" means any corporation 100 percent of whose

total combined voting shares are, directly or indirectly, owned

or controlled by the Corporation; and

(21) "supplemental transaction" means any transaction set forth

in a proposal under section 745 of this title under which the

Corporation or a subsidiary thereof would (A) acquire rail

properties not designated for transfer or conveyance to it under

the final system plan, (B) convey rail properties to a profitable

railroad, a subsidiary of the Corporation or, other than as

designated in the final system plan, to the National Railroad

Passenger Corporation or to a State or a local or regional

transportation authority, or to any other responsible person for

use in providing rail service, or (C) enter into contractual or

other arrangements with any person for the joint use of rail

properties or the coordination or separation of rail operations

or services.

-SOURCE-

(Pub. L. 93-236, title I, Sec. 102, Jan. 2, 1974, 87 Stat. 986;

Pub. L. 94-210, title VI, Secs. 601(f), (g), 603(c), 607(t),

610(a), Feb. 5, 1976, 90 Stat. 86, 88, 98, 100; Pub. L. 94-248,

Sec. 1, Mar. 25, 1976, 90 Stat. 286; Pub. L. 94-555, title II, Sec.

211(a), Oct. 19, 1976, 90 Stat. 2624; Pub. L. 96-448, title V, Sec.

508(b), title VI, Sec. 601(b), Oct. 14, 1980, 94 Stat. 1957, 1958;

Pub. L. 97-35, title XI, Sec. 1135(b), Aug. 13, 1981, 95 Stat. 646;

Pub. L. 99-509, title IV, Sec. 4033(b)(1), Oct. 21, 1986, 100 Stat.

1908; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub.

L. 104-88, title III, Sec. 327(1), Dec. 29, 1995, 109 Stat. 951.)

-REFTEXT-

REFERENCES IN TEXT

Section 711(i) of this title, referred to in par. (9), which

related to the Finance Committee of the Board of Directors of the

Association, was repealed by Pub. L. 97-35, title XI, Sec. 1147,

Aug. 13, 1981, 95 Stat. 673.

Section 10361 of title 49, referred to in par. (12), was omitted

in the general amendment of subtitle IV of Title 49,

Transportation, by Pub. L. 104-88, title I, Sec. 102(a), Dec. 29,

1995, 109 Stat. 804. Previously, in par. (12) "section 10361 of

title 49" was substituted for "section 205 of this Act", meaning

section 205 of Pub. L. 93-236, on authority of Pub. L. 95-473, Sec.

3(b), Oct. 17, 1978, 92 Stat. 1466, the first section of which

enacted subtitle IV (Sec. 10101 et seq.) of Title 49.

Section 77 of the Bankruptcy Act, referred to in par. (16), was

classified to section 205 of former Title 11, Bankruptcy. The

Bankruptcy Act (act July 1, 1898, ch. 541, 30 Stat. 544, as

amended) was repealed effective Oct. 1, 1979, by Pub. L. 95-598,

Secs. 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of

which enacted revised Title 11. For current provisions relating to

railroad reorganization, see subchapter IV (Sec. 1161 et seq.) of

chapter 11 of Title 11.

The Conrail Privatization Act, referred to in par. (17A), is

subtitle A (Secs. 4001-4052) of title IV of Pub. L. 99-509, Oct.

21, 1986, 100 Stat. 1892, which is classified principally to

chapter 22 (Sec. 1301 et seq.) of this title. For complete

classification of this Act to the Code see Short Title note set out

under section 1301 of this title and Tables. The date on which the

initial public offering of the securities of the corporation is

closed under this Act was Apr. 2, 1987.

-COD-

CODIFICATION

In par. (21), formerly (19), "under section 743(b) of this

title," was struck out as the probable intent of Congress, in view

of the amendment to par. (19) by section 601(b) of Pub. L. 96-448,

which struck out the 6 year limitation within which the special

court orders conveyances of rail properties to the Corporation,

which conveyances were to be made under section 743(b) of this

title. See 1980 Amendment note set out below.

-MISC1-

AMENDMENTS

1995 - Par. (15). Pub. L. 104-88 substituted "rail carrier

subject to part A of subtitle IV of title 49" for "common carrier

by railroad as defined in section 1(3) of part I of the Interstate

Commerce Act (49 U.S.C. 1(3))".

1986 - Par. (7). Pub. L. 99-514 substituted "Internal Revenue

Code of 1986" for "Internal Revenue Code of 1954", which for

purposes of codification was translated as "title 26" thus

requiring no change in text.

Par. (17A). Pub. L. 99-509 added par. (17A).

1981 - Pub. L. 97-35 added pars. (3) and (4). Former pars. (3) to

(19) redesignated (5) to (21), respectively.

1980 - Par. (16). Pub. L. 96-448, Sec. 508(b), substituted "or

the designated representative of the Secretary" for "or the person

at the time performing the duties of the Office of the Secretary of

Transportation in accordance with law, or, in his absence, the

Deputy Secretary of Transportation".

Par. (19). Pub. L. 96-448, Sec. 601(b), struck out ", within 6

years after the date on which the special court orders conveyances

of rail properties to the Corporation" after "section 745 of this

title". See Codification note above.

1976 - Par. (3). Pub. L. 94-248 inserted provision relating to

successor by merger, consolidation, etc., of the Corporation

Par. (7). Pub. L. 94-210, Sec. 603(c), added par. (7). Former

par. (7) redesignated (8).

Par. (8). Pub. L. 94-210, Secs. 601(g), 603(c), redesignated

former par. (7) as (8). Former par. (8) redesignated (10).

Pars. (9) to (11). Pub. L. 94-210, Sec. 601(g), added par. (9)

and redesignated former pars. (8) and (9) as (10) and (11),

respectively. Former pars. (10) and (11) redesignated (12) and

(13), respectively.

Par. (12). Pub. L. 94-210, Secs. 601(g), 607(t), redesignated

former par. (10) as (12), inserted "(or a person owned, leased, or

otherwise controlled by a railroad)" before "which are used or

useful", and substituted "phrase" for "phase". Former par. (12)

redesignated (14).

Pars. (13) to (15). Pub. L. 94-210, Sec. 601(g), redesignated

former pars. (11) to (13) as (13) to (15) respectively. Former

pars. (13) to (15) redesignated (15) to (17) respectively.

Par. (16). Pub. L. 94-555 substituted ", in his absence, the

Deputy Secretary of Transportation" for "the duly authorized

representative of either of them" after "accordance with law, or".

Pub. L. 94-210, Secs. 601(f), (g), 610(a)(1), redesignated former

par. (14) as (16) and substituted provisions relating to the person

at the time performing the duties of the Office in accordance with

the law, or the duly authorized representative of such person or

the Secretary, for provisions relating to the delegate of the

Secretary, unless the context indicated otherwise.

Par. (17). Pub. L. 94-210, Secs. 601(g), 610(a)(2), redesignated

former par. (15) as (17) and substituted a semicolon for a period.

Pars. (18), (19). Pub. L. 94-210, Sec. 610(a)(3), added pars.

(18) and (19).

EFFECTIVE DATE OF 1995 AMENDMENT

Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2

of Pub. L. 104-88, set out as an Effective Date note under section

701 of Title 49, Transportation.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section

1169 of Pub. L. 97-35, set out as an Effective Date note under

section 1101 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-448 effective Oct. 1, 1980, see section

710(a) of Pub. L. 96-448, set out as a note under section 1170 of

Title 11, Bankruptcy.

EFFECTIVE DATE OF 1976 AMENDMENT

Section 303 of Pub. L. 94-555 provided that: "The provisions of

this Act and the amendments made by this Act [amending this

section, sections 543, 545, 546, 563, 601, 602, 641, 711, 716, 720,

721, 743, 744, 771, 774, 775, 779, 823, 824, 825, 826, 829, 831,

and 854 of this title, section 960 of Title 20, Education, and

sections 1a, 5, 5c, 13, 15, 17, 22, 26c, and 1653 of former Title

49, Transportation, and enacting provisions set out as notes under

sections 501, 641, 701, and 714 of this title, section 80a-3 of

Title 15, Commerce and Trade, and sections 1a and 1654 of former

Title 49] shall take effect on October 1, 1976."

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 741, 1112 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original. The period probably should be a semicolon.

-End-

-CITE-

45 USC SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 728 of this title.

-End-

-CITE-

45 USC Sec. 711 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 711. Formation and structure

-STATUTE-

(a) Establishment

There is established, in accordance with the provisions of this

section, an incorporated nonprofit association to be known as the

United States Railway Association.

(b) Administration

The Association shall be directed by a Board of Directors. The

individuals designated, pursuant to subsection (d)(2) of this

section, as the Government members of such Board shall be deemed

the incorporators of the Association and shall take whatever steps

are necessary to establish the Association, including filing of

articles of incorporation, and serving as an acting Board of

Directors for a period of not more than 45 days after the date of

incorporation of the Association.

(c) Status

The Association shall be a government corporation of the District

of Columbia subject, to the extent not inconsistent with this

subchapter, to the District of Columbia Nonprofit Corporation Act.

Except as otherwise provided, employees of the Association shall

not be deemed employees of the Federal Government. The Association

shall have succession until dissolved by Act of Congress, shall

maintain its principal office in the District of Columbia, and

shall be deemed to be a resident of the District of Columbia with

respect to venue in any legal proceeding.

(d) Board of Directors

(1) The Board of Directors of the Association shall consist of

five individuals, as follows:

(A) The Chairman, who shall be the individual serving as

Chairman on August 13, 1981, until the expiration of his term of

office or his resignation, or his replacement, who shall be

selected by the outgoing Chairman and the other members of the

Board.

(B) The Secretary of Transportation.

(C) The Comptroller General of the United States.

(D) The Chairman of the Commission.

(E) The Chairman of the Board of Directors of the Corporation.

(2) The Chairman may not have any employment or other direct

financial relationship with any freight railroad. The Chairman

shall receive $300 per diem when engaged in the actual performance

of his duties plus reimbursement for travel, subsistence, and other

necessary expenses incurred in the performance of such duties.

(e) Term of office

The term of office of the Chairman of the Board of Directors of

the Association shall expire on December 31, 1987. The Chairman may

be reappointed and the term of the Chairman shall be 3 years.

(f) Quorum

Three members of the Board of Directors, or their

representatives, shall constitute a quorum for the transaction of

any function of the Association.

(g) Assumption of Finance Committee functions

The Board of Directors shall, on August 13, 1981, assume the

functions previously performed by the Finance Committee.

(h) Representation at meetings

The members of the Board of Directors may send representatives to

meetings of such Board, and such representatives may exercise full

powers of the members.

(i) Miscellaneous (!1)

(1) The Association shall have a seal which shall be judicially

recognized.

(2) The Administrator of General Services shall furnish the

Association with such offices, equipment, supplies, and services as

he is authorized to furnish to any other agency or instrumentality

of the United States.

(3) The Secretary is authorized to transfer to the Association or

the Corporation rights in intellectual property which are directly

related to the conduct of the functions of the Association or the

Corporation, to the extent that the Federal Government has such

rights and to the extent that transfer is necessary to carry out

the purposes of this chapter.

(4) Any reference in this chapter to the Chairman of the

Commission is to the Chairman of the Commission or the person who

is at the time performing the duties of the Chairman of the

Commission in accordance with law.

(j) Use of names (!1)

No person, except the Association, shall hereafter use the words

"United States Railway Association" as a name for any business

purpose. Violations of this provision may be enjoined by any court

of general jurisdiction in an action commenced by the Association.

In any such action, the Association may recover any actual damages

flowing from such violation, and, in addition, shall be entitled to

punitive damages (regardless of the existence or nonexistence of

actual damage) in an amount not to exceed $100 for each day during

which such violation was committed. The district courts of the

United States shall have jurisdiction over actions brought under

this subsection, without regard to the amount in controversy or the

citizenship of the parties.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 201, Jan. 2, 1974, 87 Stat. 988;

Pub. L. 94-210, title VI, Secs. 603(a), (b), 607(a), 612(j)(2),

Feb. 5, 1976, 90 Stat. 88, 96, 109; Pub. L. 94-555, title II, Sec.

211(b)-(e), Oct. 19, 1976, 90 Stat. 2624; Pub. L. 95-611, Sec. 2,

Nov. 8, 1978, 92 Stat. 3089; Pub. L. 96-448, title V, Sec. 508(c),

Oct. 14, 1980, 94 Stat. 1957; Pub. L. 97-35, title XI, Sec. 1147,

Aug. 13, 1981, 95 Stat. 673; Pub. L. 98-181, title II, Sec.

2003(c)(1), Nov. 30, 1983, 97 Stat. 1297; Pub. L. 99-190, Sec.

101(e) [title III, Sec. 332], Dec. 19, 1985, 99 Stat. 1267, 1290.)

-REFTEXT-

REFERENCES IN TEXT

The District of Columbia Nonprofit Corporation Act, referred to

in subsec. (c), is Pub. L. 87-569, Aug. 6, 1962, 76 Stat. 265, as

amended, which is not classified to the Code.

-COD-

CODIFICATION

Section 1147 of Pub. L. 97-35 directed that subsecs. (d) to (i)

be struck out and replaced by new subsecs. (d) to (h), and that

subsecs. (j) and (k) be redesignated (g) and (h), respectively.

Because a literal execution of the amendment would result in two

subsections designated (g) and two subsections designated (h), and

to reflect the probable intent of Congress, subsecs. (j) and (k)

have been editorially redesignated (i) and (j), respectively.

-MISC1-

AMENDMENTS

1985 - Subsec. (d)(2). Pub. L. 99-190, Sec. 101(e) [title III,

Sec. 332(1)], inserted "freight" before "railroad".

Subsec. (e). Pub. L. 99-190, Sec. 101(e) [title III, Sec.

332(2)], substituted "1987" for "1985".

1983 - Subsec. (e). Pub. L. 98-181 substituted "1985" for "1983".

1981 - Subsec. (d). Pub. L. 97-35 substituted provisions

respecting a five-member board for provisions respecting an

eleven-member board.

Subsec. (e). Pub. L. 97-35 substituted provisions respecting term

of office and reappointment of Chairman for provisions respecting

term of office of Chairman and nongovernmental members,

reappointment of members, and vacancies.

Subsec. (f). Pub. L. 97-35 substituted provisions respecting

three-member quorum requirement for provisions respecting

six-member quorum requirement.

Subsec. (g). Pub. L. 97-35 substituted provisions relating to

assumption of Finance Committee functions for provisions relating

to appointment of the President of the Association. See

Codification note above.

Subsec. (h). Pub. L. 97-35 substituted provisions relating to

representation at meetings for provisions relating to the executive

committee of the Board of Directors. See Codification note above.

Subsec. (i). Pub. L. 97-35 redesignated subsec. (j) as (i).

Former subsec. (i), which related to membership, functions, etc.,

of the Finance Committee, was struck out. See Codification note

above.

Subsecs. (j), (k). Pub. L. 97-35 redesignated former subsecs. (j)

relating to miscellaneous provisions, and (k) relating to use of

names, as (i) and (j), respectively. See Codification note above.

1980 - Subsec. (d)(2). Pub. L. 96-448, Sec. 508(c)(1), inserted

provision authorizing Secretary of Transportation to act directly

or through the General Counsel of Department of Transportation, the

Federal Railroad Administrator, or the Deputy Administrator of the

Federal Railroad Administration and substituted provision

authorizing Secretary of the Treasury to act directly or through an

officer of Department of the Treasury who has been appointed with

the advice and consent of the Senate for provision authorizing

Secretary of the Treasury to act directly or through Deputy

Secretary of the Treasury.

Subsec. (i). Pub. L. 96-448, Sec. 508(c)(2), substituted "in the

case of the Secretary, through the Deputy Secretary of

Transportation, the General Counsel of the Department of

Transportation, the Federal Railroad Administrator, or the Deputy

Administrator of the Federal Railroad Administration, and, in the

case of the Secretary of the Treasury, through an officer of the

Department of the Treasury who has been appointed with the advice

and consent of the Senate" for "through their respective Deputy

Secretaries".

Subsec. (j)(4). Pub. L. 96-448, Sec. 508(c)(3), struck out

provision that any reference in this chapter to Secretary of the

Treasury is to Secretary of the Treasury or person who is at time

performing duties of the Office of Secretary of the Treasury or, in

his absence, Deputy Secretary of the Treasury.

1978 - Subsec. (e). Pub. L. 95-611 inserted provision that

members of Board shall continue to serve until their successors

have been appointed and qualified.

1976 - Subsec. (d)(2). Pub. L. 94-555, Sec. 211(b), substituted

"the Deputy Secretary of Transportation, the Vice Chairman of the

Commission, or the Deputy Secretary of the Treasury, as the case

may be" for "their duly authorized representatives" after "at any

time through".

Pub. L. 94-210, Sec. 603(b)(2), substituted "acting directly or

at any time through" for "or".

Subsec. (h). Pub. L. 94-555, Sec. 211(c), struck out "The

Secretary and the Chairman of the Commission may act in such

capacity directly or at any time through their duly authorized

representatives" after "members of the Board".

Pub. L. 94-210, Sec. 603(b)(1), inserted provision authorizing

Secretary and Chairman to act directly or through their duly

authorized representatives.

Subsec. (i). Pub. L. 94-555, Sec. 211(d), substituted "Deputy

Secretaries" for "duly authorized representatives" after "through

their respective".

Pub. L. 94-210, Sec. 603(a), added subsec. (i). Former subsec.

(i) redesignated (j).

Subsec. (j). Pub. L. 94-210, Secs. 603(a), 607(a), redesignated

former subsec. (i) as (j) and added par. (4). Former subsec. (j)

redesignated (k).

Subsec. (j)(4). Pub. L. 94-555, Sec. 211(e), inserted "who is"

after "Treasury or the person" and "Commission or the person", and

substituted "in his absence, the Deputy Secretary of the Treasury"

for "the duly authorized representatives of either of them" after

"Treasury in accordance with law".

Subsec. (k). Pub. L. 94-210, Secs. 603(a), 612(j)(2),

redesignated former subsec. (j) as (k), substituted "this

provision" for "these provisions", and struck out "or the

Corporation" after "Association" in two places and provisions

relating to use of "Consolidated Rail Corporation" as a name for

any business purpose.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section

1169 of Pub. L. 97-35, set out as an Effective Date note under

section 1101 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-448 effective Oct. 1, 1980, see section

710(a) of Pub. L. 96-448, set out as a note under section 1170 of

Title 11, Bankruptcy.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-555 effective Oct. 1, 1976, see section

303 of Pub. L. 94-555, set out as a note under section 702 of this

title.

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 702, 741 of this title.

-FOOTNOTE-

(!1) See Codification note below.

-End-

-CITE-

45 USC Sec. 712 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 712. Functions of Association

-STATUTE-

(a) General

The Association is authorized to -

(1) monitor the financial performance of the Corporation;

(2) review whether the goals and requirements of this chapter

are met;

(3) purchase or otherwise acquire or receive, and hold and

dispose of securities (whether debt or equity) of the Corporation

under sections 726 and 727 of this title and exercise all of the

rights, privileges, and powers of a holder of any such

securities;

(4) purchase accounts receivable of the Corporation in

accordance with section 727 of this title;

(5) appoint and fix the compensation of such personnel as the

Association considers necessary and appropriate; and

(11) (!1) determine the value of the Alaska Railroad, as

required by section 1204 of this title.

(b) Investment of funds

Uncommitted funds of the Association shall be kept in cash on

hand or on deposit, or invested in obligations of the United States

or guaranteed thereby, or in obligations, participations, or other

investments which are lawful investments for fiduciary, trust, or

public funds.

(c) Exemption from taxation

The Association, including its franchise, capital reserves,

surplus, security holdings, and income shall be exempt from all

taxation now or hereafter imposed by the United States, any

commonwealth, territory, dependency, or possession thereof, or by

any State or political subdivision thereof, except that any real

property of the Association shall be subject to taxation to the

same extent according to its value as other real property is taxed.

(d) Reports

(1) (!2) The Association shall transmit to the Congress and the

President, not later than 90 days after the end of each fiscal

year, a comprehensive and detailed report on all activities of the

Association during the preceding fiscal year. Each such report

shall include (A) the Association's statement of specific and

detailed objectives for the activities and programs conducted and

assisted under this chapter; (B) statements of the Association's

conclusions as to the effectiveness of such activities and programs

in meeting the stated objectives and the purposes of this chapter,

measured through the end of the preceding fiscal year; (C)

recommendations with respect to any legislation or administrative

action which the Association deems necessary or desirable; (D) a

statistical compilation of the obligations issued, certificates of

value issued, securities purchased, and loans made under this

chapter; (E) a summary of outstanding problems confronting the

Association, in order of priority; (F) all other information

required to be submitted to the Congress pursuant to any other

provision of this chapter; and (G) the Association's projections

and plans for its activities and programs during the next fiscal

year.

(2) For the fiscal year beginning October 1, 1977, and ending

September 30, 1978, the Association shall transmit to the Congress

and the President, not later than 30 days after the end of each

quarter of such fiscal year, a comprehensive and detailed report on

all expenditures and use of funds during the preceding fiscal

quarter, including an assessment of the status of projects for such

preceding fiscal quarter and a projection of activities proposed

for the next fiscal quarter.

(3) The Association shall transmit to the Congress, no later than

30 days after the end of each fiscal quarter, a report with respect

to the proceedings before the special court to determine the

valuation of rail properties conveyed to the Corporation under

section 743 of this title. Each such report shall include -

(A) a detailed accounting of the Federal funds expended during

such quarter in connection with such proceedings, and the

purposes for which such funds were expended;

(B) an explanation of the status of such proceedings, including

the prospects for settlement or conclusion; and

(C) an identification of which responsibilities in connection

with such proceedings are being carried out directly by the

Association, and which are being carried out by contract with

private organizations.

(e) Budget

The receipts and disbursements of the Association (other than

administrative expenses referred to in subsection (g) (!3) of this

section and receipts and disbursements under section 726 of this

title and section 746 of this title) in the discharge of its

functions shall not be included in the totals of the budget of the

United States Government, and shall be exempt from any annual

expenditure and net lending (budget outlays) limitations imposed on

a budget of the United States Government. The Chairman of the

Association shall transmit annually to the Congress a budget for

program activities and for administrative expenses of the

Association. The Chairman shall report annually to the Congress the

amount of net lending of the Association, which would be included

in the totals of the budgets of the United States Government, if

the Association's activities were not excluded from those totals as

a result of this section.

(f) Accountability

The Chairman of the Association shall transmit annually to the

Office of Management and Budget a budget for administrative

expenses of the Association. Whenever the Association submits any

budget estimate or request to the Office of Management and Budget,

it shall concurrently transmit a copy of the estimate or request to

the Congress. Within budgetary constraints of the Congress, the

maximum feasible and prudent budgetary flexibility shall be

provided to the Association to permit effective operations.

(g) Transfer of litigation

No later than March 1, 1980, the Association and the Attorney

General of the United States shall develop and submit to the

Congress a feasibility study for the transfer, to the appropriate

department or agency of the Federal Government, of all

responsibility for representing the United States in the

proceedings before the special court to determine the valuation of

rail properties conveyed to the Corporation under section 743 of

this title.

(h) Transfer of other functions

No later than March 1, 1980, the Association and the Secretary of

Transportation shall develop and submit to the Congress a

feasibility study for the transfer of all functions of the

Association, other than those referred to in subsection (h) (!4) of

this section, to the appropriate department or agency of the

Federal Government, including the abolition of those functions

which will no longer be necessary.

(i) Monitoring of contractors

The Board of Directors of the Association shall adopt procedures

to insure (1) that contractors, including law firms, provide

reports containing written verification of tasks assigned, work

performed, time worked, and costs incurred, including periodic

status reports on work performed, (2) that such reports are audited

by the Association, (3) that no funds are paid to contractors

without written reports complying with the requirements of this

subsection, and (4) that the Association applies such procedures

uniformly to all contractors.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 202, Jan. 2, 1974, 87 Stat. 990;

Pub. L. 94-5, Sec. 2(a), Feb. 28, 1975, 89 Stat. 7; Pub. L. 94-210,

title VI, Secs. 601(c), 607(b), (c), Feb. 5, 1976, 90 Stat. 84, 96;

Pub. L. 95-199, Sec. 2, Nov. 23, 1977, 91 Stat. 1423; Pub. L.

96-73, title II, Secs. 202, 203, Sept. 29, 1979, 93 Stat. 555; Pub.

L. 97-35, title XI, Sec. 1148(a), (b), Aug. 13, 1981, 95 Stat. 674;

Pub. L. 97-468, title VI, Sec. 605(e), Jan. 14, 1983, 96 Stat.

2564.)

-COD-

CODIFICATION

Subsec. (f), formerly (g), of this section as originally enacted

consisted of pars. (1) and (2). Par. (1), which amended section 856

of former Title 31, Money and Finance, was repealed by Pub. L.

97-258, Sec. 5(b), Sept. 13, 1982, 96 Stat. 1068, the first section

of which enacted Title 31.

-MISC1-

AMENDMENTS

1983 - Subsec. (a)(11). Pub. L. 97-468 added par. (11).

1981 - Subsec. (a). Pub. L. 97-35, Sec. 1148(a)(1), substituted

provisions respecting financial performance monitoring, goal

review, etc., for provisions respecting plan preparation and

implementation, issuance of obligations, etc.

Subsecs. (b) to (j). Pub. L. 97-35, Sec. 1148(a), struck out

subsec. (b) which related to additional duties of the Association,

and redesignated subsecs. (c) to (j) as (b) to (i), respectively.

1979 - Subsec. (e)(3). Pub. L. 96-73, Sec. 202, added par. (3).

Subsecs. (h) to (j). Pub. L. 96-73, Sec. 203, added subsecs. (h)

to (j).

1977 - Subsec. (e). Pub. L. 95-199 substituted "Reports" for

"Annual report" in heading, redesignated cls. (1) through (7) as

cls. (A) through (G) in first par., and added par. (2).

1976 - Subsec. (a)(2). Pub. L. 94-210, Sec. 601(c), inserted

provisions relating to securities under section 726 of this title

and certificates of value under section 746 of this title.

Subsec. (e). Pub. L. 94-210, Sec. 607(b), in cl. (4) inserted ",

certificates of value issued, securities purchased," after

"obligations issued".

Subsec. (f). Pub. L. 94-210, Sec. 607(c), inserted provisions

relating to receipts and disbursements under sections 726 and 746

of this title.

1975 - Subsec. (b)(2). Pub. L. 94-5, Sec. 2(a)(1), inserted "and

express" after "rail" wherever appearing.

Subsec. (b)(7). Pub. L. 94-5, Sec. 2(a)(2), substituted "; and"

for a period at end of par. (7).

Subsec. (b)(8). Pub. L. 94-5, Sec. 2(a)(3), added par. (8).

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section

1169 of Pub. L. 97-35, set out as an Effective Date note under

section 1101 of this title.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-73 effective Oct. 1, 1979, see section

501(a) of Pub. L. 96-73.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions of law

requiring submittal to Congress of any annual, semiannual, or other

regular periodic report listed in House Document No. 103-7 (in

which reports required under subsecs. (d)(1), (3), (e), and (f) of

this section are listed as the 3rd through 6th items on page 195),

see section 3003 of Pub. L. 104-66, as amended, and section 1(a)(4)

[div. A, Sec. 1402(1)] of Pub. L. 106-554, set out as notes under

section 1113 of Title 31, Money and Finance.

-TRANS-

ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGANIZATION ACT OF

1973, AND TRANSFER OF FUNCTIONS

Special court abolished and all jurisdiction and functions

transferred to United States District Court for District of

Columbia, see section 719(b)(2) of this title.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 716, 719 of this title.

-FOOTNOTE-

(!1) So in original. Probably should be "(6)".

(!2) Par. "(1)" designation supplied editorially.

(!3) So in original. Subsec. (g) redesignated (f) by Pub. L.

97-35.

(!4) So in original. Subsec. (h) redesignated (g) by Pub. L.

97-35.

-End-

-CITE-

45 USC Sec. 713 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 713. Access to information

-STATUTE-

The Corporation shall make available to the Association such

information as the Association determines necessary for the

Association to carry out its functions under this chapter. The

Association shall request from other parties which are affected by

this chapter information which will enable the Association to

fulfill its functions under this chapter.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 203, Jan. 2, 1974, 87 Stat. 992;

Pub. L. 94-210, title VI, Sec. 607(d), Feb. 5, 1976, 90 Stat. 96;

Pub. L. 97-35, title XI, Sec. 1149, Aug. 13, 1981, 95 Stat. 675.)

-MISC1-

AMENDMENTS

1981 - Pub. L. 97-35 substituted provisions relating to the

Corporation making available to the Association all necessary

information for provisions set out as subsecs. (a) to (d)

respecting planning and other information availability, and

enforcement procedures.

1976 - Subsec. (a). Pub. L. 94-210 struck out provisions

prohibiting requests for information under this subsection after

effective date of the final system plan.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section

1169 of Pub. L. 97-35, set out as an Effective Date note under

section 1101 of this title.

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 741 of this title; title

49 section 333.

-End-

-CITE-

45 USC Sec. 714 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 714. Omitted

-COD-

CODIFICATION

Section, Pub. L. 93-236, title II, Sec. 204, Jan. 2, 1974, 87

Stat. 993, directed the Secretary, within 30 days after Jan. 2,

1974, to prepare a report, with recommendations, with respect to

the geographic zones within the region in which said service should

be provided, to submit the report to the Office, the Association,

the Governor, and the public utilities commission of each State

studied in the report and to local governments, consumer

organizations, environmental groups, the public, and to Congress,

and to publish the report in the Federal Register.

-MISC1-

DELAWARE-MARYLAND-VIRGINIA PENINSULA RAIL STUDY; REPORT TO CONGRESS

Pub. L. 94-555, title III, Sec. 302, Oct. 19, 1976, 90 Stat.

2631, directed Interstate Commerce Commission to submit a report to

Congress, within six months of Oct. 19, 1976, regarding problems of

and need for rail transportation services on

Delaware-Maryland-Virginia peninsula.

-End-

-CITE-

45 USC Sec. 715 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 715. Repealed. Pub. L. 95-473, Sec. 4(b), Oct. 17, 1978, 92

Stat. 1466

-MISC1-

Section, Pub. L. 93-236, title II, Sec. 205, Jan. 2, 1974, 87

Stat. 993, Pub. L. 94-5, Sec. 3, Feb. 28, 1975, 89 Stat. 7; Pub. L.

94-210, title III, Sec. 309, Feb. 5, 1976, 90 Stat. 57, established

Rail Services Planning Office.

-End-

-CITE-

45 USC Sec. 716 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 716. Final system plan

-STATUTE-

(a) Goals

The final system plan shall be formulated in such a way as to

effectuate the following goals:

(1) the creation, through a process of reorganization, of a

financially self-sustaining rail and express service system in

the region;

(2) the establishment and maintenance of a rail service system

adequate to meet the rail transportation needs and service

requirements of the region;

(3) the establishment of improved high-speed rail passenger

service, consonant with the recommendations of the Secretary in

his report of September 1971, entitled "Recommendations for

Northeast Corridor Transportation";

(4) the preservation, to the extent consistent with other

goals, of existing patterns of service by railroads (including

short-line and terminal railroads), and of existing railroad

trackage in areas in which fossil fuel natural resources are

located, and the utilization of those modes of transportation in

the region which require the smallest amount of scarce energy

resources and which can most efficiently transport energy

resources;

(5) the retention and promotion of competition in the provision

of rail and other transportation services in the region;

(6) the attainment and maintenance of any environmental

standards, particularly the applicable national ambient air

quality standards and plans established under the Clean Air Act

Amendments of 1970, taking into consideration the environmental

impact of alternative choices of action;

(7) the movement of passengers and freight in rail

transportation in the region in the most efficient manner

consistent with safe operation, including the requirements of

commuter and intercity rail passenger service; the extent to

which there should be coordination with the National Railroad

Passenger Corporation and similar entities; and the

identification of all short-to-medium distance corridors in

densely populated areas in which the major upgrading of rail

lines for high-speed passenger operation would return substantial

public benefits; and

(8) the minimization of job losses and associated increases in

unemployment and community benefit costs in areas in the region

presently served by rail service.

(b) Factors

The final system plan shall be based upon due consideration of

all factors relevant to the realization of the goals set forth in

subsection (a) of this section. Such factors include the need for

and the cost of rehabilitation and modernization of track,

equipment, and other facilities; methods of achieving economies in

the cost of rail operations in the region; means of achieving

rationalization of rail services and the rail service system in the

region; marketing studies; the impact on railroad employees;

consumer needs; traffic analyses; financial studies; and any other

factors identified by the Association under section 712(b) (!1) of

this title or in the report of the Secretary required under section

714(a) of this title.

(c) Designations

The final system plan shall designate -

(1) which rail properties of railroads in reorganization in the

region or of railroads leased, operated, or controlled by any

railroad in reorganization in the region -

(A) shall be transferred to the Corporation: Provided, That

the Corporation shall, within 95 days after the effective date

of the final system plan, give notice to the Association of

which such rail properties, if any, are to be transferred to a

subsidiary of the Corporation in the event that the Board of

Directors of the Association finds that such transfer would be

consistent with the final system plan;

(B) shall be offered for sale to a profitable railroad

operating in the region and, if such offer is accepted,

operated by such railroad; the plan shall designate what

additions shall be made to the designation under subparagraph

(A) of this paragraph and what alternative designations shall

be made under this paragraph in the event such profitable

railroad fails to accept such offer;

(C) shall be purchased, leased, or otherwise acquired from

the Corporation by the National Railroad Passenger Corporation

in accordance with the exercise of its option under section

791(d) of this title for improvement to achieve the goal set

forth in subsection (a)(3) of this section;

(D) may be purchased or leased from the Corporation by (i) a

State or a local or regional transportation authority to meet

the needs of commuter and intercity rail passenger service, or

(ii) the National Railroad Passenger Corporation to meet the

needs of improved rail passenger service over intercity routes,

other than properties designated pursuant to subparagraph (C)

of this paragraph; and

(E) if not otherwise required to be operated by the

Corporation, a government entity, or a responsible person, are

suitable for use for other public purposes, including highways,

other forms of transportation, conservation, energy

transmission, education or health care facilities, or

recreation. In carrying out this subparagraph, the Association

shall solicit the views and recommendations of the Secretary,

the Secretary of the Interior, the Administrator of the

Environmental Protection Agency, and other agencies of the

Federal Government and of the States and political subdivisions

thereof within the region, and the general public; and

(2) which rail properties of profitable railroads operating in

the region may be offered for sale to the Corporation or to other

profitable railroads operating in the region subject to

paragraphs (3) and (4) of subsection (d) of this section. Any

rail properties designated to be offered for sale to the

Corporation may be sold instead to a subsidiary of the

Corporation.

(d) Transfers

All transfers or conveyances pursuant to the final system plan

shall be made in accordance with, and subject to, the following

principles:

(1) All rail properties to be transferred to the Corporation or

any subsidiary thereof by a profitable railroad, by trustees of a

railroad in reorganization, or by any railroad leased, operated,

or controlled by a railroad in reorganization in the region,

shall be transferred in exchange for stock and other securities

of the Corporation or any subsidiary thereof (including

obligations of the Association) and the other benefits accruing

to such railroad by reason of such transfer.

(2) All rail properties to be conveyed to a profitable railroad

operating in the region by trustees of a railroad in

reorganization, or by any railroad leased, operated, or

controlled by a railroad in reorganization in the region, shall

be conveyed in exchange for compensation from the profitable

railroad.

(3) Notwithstanding any other provision of this chapter, no

acquisition under this chapter shall be made by any profitable

railroad operating in the region without a determination with

respect to each such transaction and all such transactions

cumulatively (A) by the Association, upon adoption and release of

the preliminary system plan, that such acquisition or

acquisitions will not materially impair the profitability of any

other profitable railroad operating in the region or of the

Corporation, and (B) by the Commission, which shall be made

within 90 days after adoption and release by the Association of

the preliminary system plan, that such acquisition or

acquisitions will be in full accord and comply with the

provisions and standards of subchapter III (!2) of chapter 113 of

title 49. All determinations made by the Association in the

correction to the preliminary system plan published on April 11,

1975 (40 Fed. Reg. 16377), shall be treated for all purposes as

if they had been made upon adoption and release by the

Association of the preliminary system plan. All determinations

made by the Commission with respect to such correction shall be

treated for all purposes as if they had been made within 90 days

after adoption and release by the Association of the preliminary

system plan. All determinations made by the Commission with

respect to acquisitions by profitable railroads referred to in

any supplement to the preliminary system plan published under

section 717(b)(2) of this title shall be deemed to be timely if

made prior to the adoption of the final system plan under section

717(c) of this title. The determination by the Association shall

not be reviewable in any court. The determination by the

Commission shall not be reviewable in any court.

(4) Where the final system plan designates specified rail

properties of a railroad in reorganization in the region, or of a

railroad leased, operated, or controlled by a railroad in

reorganization in the region, to be offered for sale to and

operated by a profitable railroad operating in the region, such

designation shall terminate 7 days after February 5, 1976,

unless, prior to such date, such profitable railroad has notified

the Association in writing of its acceptance of such offer. Any

such offer may be modified until the date of acceptance thereof,

unless such modification results in an offer for the sale of rail

properties at less than the net liquidation value thereof. Where

the final system plan designates specified rail properties of a

profitable railroad operating in the region as authorized to be

offered for sale or lease to the Corporation or to other

profitable railroads operating in the region, such designation

and authorization shall terminate 95 days after the effective

date of the final system plan unless, prior to such date, a

binding agreement with respect to such properties has been

entered into and concluded.

(5) All properties -

(A) transferred by the Corporation pursuant to subsection

(c)(1)(C) of this section and section 791(d) of this title;

(B) transferred by the Corporation to any State (or local or

regional transportation authority), pursuant to subsection

(c)(1)(D) of this section, or

(C) transferred by the Corporation to any State, local or

regional transportation authority, or the National Railroad

Passenger Corporation, within 3 years after the date of

conveyance, pursuant to section 743(b)(1) of this title, to

meet the needs of commuter or intercity rail passenger service,

shall be transferred at a value related to the value received

from the Corporation pursuant to the final system plan for the

transfer to such Corporation of such properties. The value of any

such properties, which are transferred pursuant to subparagraph

(B) or (C) of this paragraph, shall be adjusted to reflect the

value attributable to any applicable maintenance and improvement

provided by the Corporation (to the extent the Corporation has

not been released from the obligation to pay for such

improvements) and the cost to the Corporation of transferring

such properties. The Corporation, its Board of Directors, and its

individual directors shall not be liable to any party, for money

damages or in any other manner, solely by reason of the fact that

the Corporation transferred property pursuant to section 743 of

this title to meet the needs of commuter or intercity rail

passenger service or for purposes of providing rail marine

freight floating service, except as otherwise provided with

respect to the Corporation pursuant to section 743(c)(2) of this

title.

(6) Notwithstanding any statement to the contrary in the final

system plan, a State (or a local or regional transportation

authority) shall not be required to deliver to the Corporation a

firm commitment to acquire rail properties designated to such

State or authority prior to 7 days after February 5, 1976.

(7) Notwithstanding any contrary provision in the options

conveyed to the Corporation by railroads in reorganization, or

railroads leased, operated, or controlled by a railroad in

reorganization, with respect to the acquisition by the

Corporation pursuant to the final system plan, on behalf of a

State (or a local or regional transportation authority) of rail

properties designated under subsection (c)(1)(D) of this section,

such options shall not be deemed to have expired prior to 7 days

after September 30, 1976. The exercise by the Corporation of any

such option shall be effective if it is made, prior to the

expiration of such 7-day period, in the manner prescribed in such

options.

(e) Corporation features

The final system plan shall set forth -

(1) pro forma earnings for the Corporation, as reasonably

projected and considering the additions or changes in the

designation of rail properties to be operated by the Corporation

which may be made under subsection (d)(4) of this section;

(2) the capital structure of the Corporation, based on the pro

forma earnings of the Corporation as set forth, including such

debt capitalization as shall be reasonably deemed to conform to

the requirements of the public interest with respect to railroad

debt securities, including the adequacy of coverage of fixed

charges; and

(3) the manner in which employee stock ownership plans may, to

the extent practicable, be utilized for meeting the

capitalization requirements of the Corporation, taking into

account (A) the relative cost savings compared to conventional

methods of corporate finance; (B) the labor cost savings; (C) the

potential for minimizing strikes and producing more harmonious

relations between labor organizations and railway management; (D)

the projected employee dividend incomes; (E) the impact on

quality of service and prices to railway users; and (F) the

promotion of the objectives of this chapter of creating a

financially self-sustaining railway system in the region which

also meets the service needs of the region and the Nation.

(f) Value

The final system plan shall designate the value of all rail

properties to be transferred under the final system plan and the

value of the securities and other benefits to be received for

transferring those rail properties to the Corporation in accordance

with the final system plan.

(g) Other provisions

The final system plan may recommend arrangements among various

railroads for joint use or operation of rail properties on a shared

ownership, cooperative, pooled, or condominium-type basis, subject

to such terms and conditions as may be specified in the final

system plan. The final system plan shall also make such

designations as are determined to be necessary in accordance with

the provisions of section 762 or 763 (!3) of this title.

(h) Obligational authority

The final system plan shall recommend the amount of obligations

of the Association which are necessary to enable it to implement

the final system plan.

(i) Terms and conditions for securities

The final system plan may include terms and conditions for any

securities to be issued by the Corporation in exchange for the

conveyance of rail properties under the final system plan which in

the judgement of the Association will minimize any actual or

potential debt burden on the Corporation. Any such terms and

conditions for securities of the Corporation which purport to

directly obligate the Association shall not become effective

without affirmative approval, with or without modification by a

joint resolution of the Congress.

(j) Additional properties deemed designated

Any rail properties over which rail service was being provided as

of February 5, 1976, and which were recommended in the preliminary

system plan for transfer to the Corporation, shall be deemed to be

designated in the final system plan for transfer to the Corporation

under subsection (c)(1)(A) of this section. Any designation in the

final system plan, pursuant to subsection (c)(1)(B) of this

section, of overhead trackage rights to be acquired by a profitable

railroad operating in the region over specified rail properties to

be acquired by the Corporation, where such designation does not (1)

authorize such profitable railroad to interchange traffic with at

least one railroad, or (2) provide for the connection of portions

of such profitable railroad's rail properties, and where the

transfer of ownership of such rail properties (including trackage

rights) to such profitable railroad was recommended in the

preliminary system plan, and the Commission has made a

determination with respect thereto, in accordance with subsection

(d)(3) of this section, shall be deemed to authorize such

profitable railroad to interchange traffic with the Corporation and

any other profitable railroad connecting with such specified rail

properties.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 206, Jan. 2, 1974, 87 Stat. 994;

Pub. L. 94-5, Sec. 2(b), Feb. 28, 1975, 89 Stat. 7; Pub. L. 94-210,

title VI, Sec. 607(e)-(j), (o)-(q), title VIII, Sec. 807, Feb. 5,

1976, 90 Stat. 96-98, 143; Pub. L. 94-436, Secs. 2, 4, Sept. 30,

1976, 90 Stat. 1398; Pub. L. 94-555, title II, Sec. 202(a), (c),

Oct. 19, 1976, 90 Stat. 2616, 2617; Pub. L. 95-611, Sec. 4(a), Nov.

8, 1978, 92 Stat. 3090.)

-REFTEXT-

REFERENCES IN TEXT

Clean Air Act Amendments of 1970, referred to in subsec. (a)(6),

mean Pub. L. 91-604, Dec. 31, 1970, 84 Stat. 1676. For complete

classification of this Act to the Code, see Short Title of 1970

Amendment note set out under section 7401 of Title 42, The Public

Health and Welfare, and Tables.

Section 712(b) of this title, referred to in subsec. (b), which

related to additional duties of the Association, was repealed and

section 712(c) of this title was redesignated section 712(b) by

Pub. L. 97-35, title XI, Sec. 1148(a), Aug. 13, 1981, 95 Stat. 674.

Section 714 of this title, referred to in subsec. (b), was

omitted from the Code.

Subchapter III of chapter 113 of title 49, referred to in subsec.

(d)(3), was omitted in the general amendment of subtitle IV of

Title 49, Transportation, by Pub. L. 104-88, title I, Sec. 102(a),

Dec. 29, 1995, 109 Stat. 804. Previously, in subsec. (d)(3),

"subchapter III of chapter 113 of title 49" was substituted for

"section 5 of part I of the Interstate Commerce Act (49 U.S.C. 5)"

on authority of Pub. L. 95-473, Sec. 3(b), Oct. 17, 1978, 92 Stat.

1446, the first section of which enacted subtitle IV (Sec. 10101 et

seq.) of Title 49.

Sections 762 and 763 of this title, referred to in subsec. (g),

were repealed by Pub. L. 94-210, title VIII, Sec. 806, Feb. 5,

1976, 90 Stat. 143, eff. Apr. 1, 1978.

-MISC1-

AMENDMENTS

1978 - Subsec. (d)(5)(C). Pub. L. 95-611 substituted "3 years"

for "900 days".

1976 - Subsec. (c)(1)(A). Pub. L. 94-210, Sec. 607(g), inserted

proviso relating to notice by the Corporation to the Association.

Subsec. (c)(1)(B). Pub. L. 94-210, Sec. 607(f), inserted

provision relating to alternative designations to be made under

this paragraph.

Subsec. (c)(1)(D). Pub. L. 94-210, Sec. 607(j), designated

existing provision as cl. (i) and added cl. (ii).

Subsec. (c)(2). Pub. L. 94-210, Sec. 607(h), inserted provision

relating to sale of designated properties to a subsidiary of the

Corporation.

Subsec. (d)(1). Pub. L. 94-210, Sec. 607(i), inserted "or any

subsidiary thereof" after "Corporation" wherever appearing.

Subsec. (d)(3). Pub. L. 94-210, Sec. 607(e), inserted provisions

relating to correction to the preliminary system plan published in

40 Fed. Reg. 16377, determinations made with respect to such

correction by the Commission, and determinations made with respect

to acquisitions referred to in any supplement to the preliminary

system plan.

Subsec. (d)(4). Pub. L. 94-210, Sec. 607(o), inserted provision

relating to modification of offer until the date of acceptance, and

substituted "95" for "60" and "7 days after February 5, 1976," for

"30 days after the effective date of the final system plan".

Subsec. (d)(5). Pub. L. 94-555, Sec. 202(a), inserted "or for

purposes of providing rail marine freight floating service" after

"intercity rail passenger service".

Pub. L. 94-436, Sec. 2, inserted provision relieving the

Corporation, its Board of Directors, and its individual directors

from liability to any party by reason of the fact that the

Corporation transferred property pursuant to section 743 of this

title.

Pub. L. 94-210, Sec. 807, restructured provisions and substituted

provisions relating to valuation of transferred properties

transferred by the Corporation and adjustment of such valuation,

for provisions relating to valuation of transferred properties sold

by the Corporation.

Subsec. (d)(6). Pub. L. 94-210, Sec. 607(p), added par. (6).

Subsec. (d)(7). Pub. L. 94-555, Sec. 202(c), inserted "by the

Corporation pursuant to the final system plan" after "with respect

to the acquisition".

Pub. L. 94-436, Sec. 4, added par. (7).

Subsec. (j). Pub. L. 94-210, Sec. 607(q), added subsec. (j).

1975 - Subsec. (a)(1). Pub. L. 94-5 inserted "and express" after

"rail".

EFFECTIVE DATE OF 1978 AMENDMENT

Section 4(b) of Pub. L. 95-611 provided that: "The amendment made

by this Act [probably meaning this section 4, which amended section

716 of this title] shall be effective on January 2, 1974."

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-555 effective Oct. 1, 1976, see section

303 of Pub. L. 94-555, set out as a note under section 702 of this

title.

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 702, 717, 718, 725, 743,

744, 745, 747, 791 of this title; title 49 sections 24907, 24909.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) See References in Text note below.

(!3) See References in Text note below.

-End-

-CITE-

45 USC Sec. 717 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 717. Adoption of final system plan

-STATUTE-

(a) Preliminary system plan

(1) Within 420 days after January 2, 1974, the Association shall

adopt and release a preliminary system plan prepared by it on the

basis of reports and other information submitted to it by the

Secretary, the Office, and interested persons in accordance with

this chapter and on the basis of its own investigations,

consultations, research, evaluation, and analysis pursuant to this

chapter. Copies of the preliminary system plan shall be transmitted

by the Association to the Secretary, the Office, the Governor and

public utility commission of each State in the region, the

Congress, each court having jurisdiction over a railroad in

reorganization in the region, the special court, and interested

persons, and a copy shall be published in the Federal Register. The

Association shall invite and afford interested persons an

opportunity to submit comments on the preliminary system plan to

the Association within 60 days after the date of its release.

(2) The Office is authorized and directed to hold public hearings

on the preliminary system plan and to make available to the

Association a summary and analysis of the evidence received in the

course of such proceedings, together with its critique and

evaluation of the preliminary system plan, not later than 60 days

after the date of release of such plan. The Office is authorized to

hold public hearings on any supplement to the preliminary system

plan and to make available to the Association a summary and

analysis of the evidence received in the course of such

proceedings, together with its critique and evaluation of such

supplement, not later than 30 days after the release of such

supplement.

(b) Approval

(1) Within 120 days after January 2, 1974, each United States

district court or other court having jurisdiction over a railroad

in reorganization shall decide whether the railroad is

reorganizable on an income basis within a reasonable time under

section 77 of the Bankruptcy Act and that the public interest would

be better served by continuing the present reorganization

proceedings than by a reorganization under this chapter. Within 60

days after the submission of the report by the Office, under

section 715(d)(1) of this title, on the Secretary's report on rail

services in the region, each United States district court or other

court having jurisdiction over a railroad in reorganization shall

decide whether or not such railroad shall be reorganized by means

of transferring some of its rail properties to the Corporation

pursuant to the provisions of this chapter. Because of the strong

public interest in the continuance of rail transportation in the

region pursuant to a system plan devised under the provisions of

this chapter, each such court shall order that the reorganization

be proceeded with pursuant to this chapter unless it (1) has found

that the railroad is reorganizable on an income basis within a

reasonable time under section 77 of the Bankruptcy Act and that the

public interest would be better served by such a reorganization

than by a reorganization under this chapter, or (2) finds that this

chapter does not provide a process which would be fair and

equitable to the estate of the railroad in reorganization in which

case it shall dismiss the reorganization proceeding. If a court

does not enter an order or make a finding as required by this

subsection, the reorganization shall be proceeded with pursuant to

this chapter. An appeal from an order made under this section may

be made only to the special court. Appeal to the special court

shall be taken within 10 days following entry of an order pursuant

to this subsection, and the special court shall complete its review

and render its decision within 80 days after such appeal is taken.

There shall be no review of the decision of the special court.

(2) Whenever it has been finally determined pursuant to the

procedures of paragraph (1) of this subsection, that the

reorganization of a railroad subject to reorganization under

section 77 of the Bankruptcy Act shall not be proceeded with

pursuant to this chapter, the court having jurisdiction over such

railroad may, upon a petition which is filed within 10 days after

February 28, 1975, by the trustees of such railroad, reconsider

such order. Such reorganization court shall (i) affirm its previous

order or (ii) issue an order that the reorganization of such

railroad be proceeded with pursuant to this chapter unless it finds

that this chapter does not provide a process which would be fair

and equitable. The provisions of paragraph (1) of this subsection

are applicable in such reconsideration, except that (A) such

reorganization court shall make its decision within 30 days after

such petition is filed, and (B) any decision by the special court

on appeal from such a decision shall be rendered within 30 days

after such reorganization court decision is made. There shall be no

review of the decision of the special court. The Association shall

take any steps it finds necessary, consistent with time limitations

and other provisions of this chapter, to effectuate the

consequences of such a revised order, including the preparation and

submission of any necessary or appropriate supplements to the

preliminary system plan.

(c) Adoption

Within 540 days after January 2, 1974, the executive committee of

the Association shall prepare and submit a final system plan for

the approval of the Board of Directors of the Association. A copy

of such submission shall be simultaneously presented to the

Commission. The submission shall reflect evaluation of all

responses and summaries of responses received, testimony at any

public hearings, and the results of additional study and review.

Within 30 days thereafter, the Board of Directors of the

Association shall by a majority vote of all its members approve a

final system plan which meets all of the requirements of section

716 of this title.

(d) Review of Commission

Within 30 days following the adoption of the final system plan by

the Association under subsection (c) of this section and the

submission of such plan to Congress under section 718(a) of this

title, the Commission shall submit to the Congress an evaluation of

the final system plan delivered to both Houses of Congress.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 207, Jan. 2, 1974, 87 Stat. 998;

Pub. L. 93-488, Sec. 1(a), (b), Oct. 26, 1974, 88 Stat. 1464; Pub.

L. 94-5, Sec. 4, Feb. 28, 1975, 89 Stat. 7.)

-REFTEXT-

REFERENCES IN TEXT

Section 77 of the Bankruptcy Act, referred to in subsec. (b)(1),

(2), was classified to section 205 of former Title 11, Bankruptcy.

The Bankruptcy Act (act July 1, 1898, ch. 541, 30 Stat. 544, as

amended) was repealed effective Oct. 1, 1979, by Pub. L. 95-598,

Secs. 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of

which enacted revised Title 11. For current provisions relating to

railroad reorganization, see subchapter IV (Sec. 1161 et seq.) of

chapter 11 of Title 11.

Section 715(d)(1) of this title, referred to in subsec. (b)(1),

is a reference to section 715(d)(1) prior to amendment by Pub. L.

94-210. Section 715 was repealed by Pub. L. 95-473, Sec. 4(b), Oct.

17, 1978, 92 Stat. 1466, the first section of which enacted

subtitle IV (Sec. 10101 et seq.) of Title 49, Transportation.

-MISC1-

AMENDMENTS

1975 - Subsec. (a)(2). Pub. L. 94-5, Sec. 4(b), inserted

provisions authorizing the Office to hold public hearings on

supplements to the preliminary system plan and to make available to

the Association a summary and analysis of the evidence received in

the course of such proceedings, together with its critique and

evaluation of the supplement not later than 30 days after the

release of the supplement.

Subsec. (b). Pub. L. 94-5, Sec. 4(a), designated existing

provisions as par. (1) and added par. (2).

1974 - Subsec. (a)(1). Pub. L. 93-488, Sec. 1(a), substituted

"420" for "300".

Subsec. (c). Pub. L. 93-488, Sec. 1(b), substituted "540" for

"420".

-TRANS-

ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGANIZATION ACT OF

1973, AND TRANSFER OF FUNCTIONS

Special court abolished and all jurisdiction and functions

transferred to United States District Court for District of

Columbia, see section 719(b)(2) of this title.

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 702, 716, 719, 721 of

this title.

-End-

-CITE-

45 USC Sec. 718 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 718. Review by Congress

-STATUTE-

(a) General

The Board of Directors of the Association shall deliver the final

system plan adopted by the Association to both Houses of Congress

and to the Committee on Energy and Commerce of the House of

Representatives and the Committee on Commerce, Science, and

Transportation of the Senate. The final system plan shall be deemed

approved at the end of the first period of 60 calendar days of

continuous session of Congress after such date of transmittal

unless either the House of Representatives or the Senate passes a

resolution during such period stating that it does not favor the

final system plan.

(b) Revised plan

If either the House or the Senate passes a resolution of

disapproval under subsection (a) of this section, the Association,

with the cooperation and assistance of the Secretary and the

Office, shall prepare, determine, and adopt a revised final system

plan. Each such revised plan shall be submitted to Congress for

review pursuant to subsection (a) of this section.

(c) Computation

For purposes of this section -

(1) continuity of session of Congress is broken only by an

adjournment sine die; and

(2) the days on which either House is not in session because of

an adjournment of more than 3 days to a day certain are excluded

in the computation of the 60-day period.

(d) Additions

(1) The supplemental report, dated September 18, 1975, to the

final system plan, and the provisions of the Association's official

errata supplement to the final system plan, dated December 1, 1975,

including all designations made therein, shall be treated for all

purposes as if they had been part of and included in the final

system plan adopted by the Association and reviewed by the

Congress. The final system plan shall, for all purposes, be deemed

to be approved as modified and amended by such supplemental report

and such supplement.

(2) The Association may, upon petition of any State, modify the

final system plan to make further designations with respect to rail

properties of railroads in reorganization in the region designated

for transfer to the Corporation under such plan, if such

designations (A) are likely to result in improved rail service on

such rail properties and connecting rail properties, and (B) would

not materially impair the profitability of the Corporation. Such

designations, including designations of such rail properties to a

State, a profitable railroad, or a responsible person, may be made

at any time prior to delivery of the final system plan to the

special court under section 719(c) of this title. Such further

designations shall be treated for all purposes as if they had been

included in the final system plan adopted by the Association and

reviewed by the Congress, and the final system plan shall for all

purposes be deemed to be approved as modified by such designations.

Any action of the Association with respect to any such petition

shall not be subject to review by any court.

(3)(A) Within 20 days after February 5, 1976, the Association

may, by notice to the Congress and by publication in the Federal

Register, modify, supplement, or add to the designations of rail

properties in the final system plan if the Association finds such

actions are necessary to -

(i) achieve the efficient implementation of the final system

plan, or

(ii) provide for the offer to profitable railroads of rail

properties designated in the final system plan to the

Corporation, if such properties are not essential in the

operation of other rail properties of the Corporation but are or

would be integrally related to the operation of rail properties

of (or which are offered pursuant to the final system plan to)

such profitable railroad, or

(iii) provide for the designation of additional rail properties

to the Corporation or to a subsidiary thereof to enable the

Corporation to serve efficiently a line of railroad designated to

the Corporation in the final system plan if such line does not

connect with any other line of railroad so designated to the

Corporation or if such line would be served more efficiently as a

consequence of such designation.

Any designation to a profitable railroad pursuant to this paragraph

shall comply with the second sentence of section 716(d)(4) of this

title, and shall only be made upon a finding by the Association

that such designation is integrally related to an offer of rail

properties to a profitable railroad in the final system plan, that

the goals of the final system plan require that the rail properties

be operated as a part of the rail properties included in such

offer, and that the implementation of such designation will not

materially and adversely affect the impact of such offer on the

profitability of the Corporation or any profitable railroad

operating in the region. Any designation to a profitable railroad

pursuant to this subsection, which amends any prior offer, shall

terminate 30 days after February 5, 1976, unless, prior to such

date, such profitable railroad has notified the Association in

writing of its acceptance of such amendment to the prior offer.

(B) If a line of railroad or any segment thereof is designated

for rail service in the final system plan, no designation may be

made by the Association pursuant to this paragraph which would

result in such line or segment not being so designated. Any

designations made pursuant to this paragraph shall be treated for

all purposes as if they had been included in the final system plan

adopted by the Association and reviewed by the Congress. The final

system plan shall for all purposes be deemed to be approved as

amended by such designations.

(C) Any designations made pursuant to this paragraph shall not be

subject to review by any court.

(D) Any labor agreements entered into under section 778 (!1) of

this title shall be subject to further negotiations for any

modifications which may be necessary to implement designations made

pursuant to this paragraph.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 208, Jan. 2, 1974, 87 Stat. 999;

Pub. L. 94-210, title VI, Sec. 601(e), Feb. 5, 1976, 90 Stat. 84;

S. Res. 4, Feb. 4, 1977; H. Res. 549, Mar. 25, 1980.)

-REFTEXT-

REFERENCES IN TEXT

Section 778 of this title, referred to in subsec. (d)(3)(D), was

repealed by Pub. L. 97-35, title XI, Sec. 1144(a)(1), Aug. 13,

1981, 95 Stat. 669.

-MISC1-

AMENDMENTS

1976 - Subsec. (d). Pub. L. 94-210 added subsec. (d).

-CHANGE-

CHANGE OF NAME

Committee on Interstate and Foreign Commerce of the House of

Representatives changed to Committee on Energy and Commerce

immediately prior to noon on Jan. 3, 1981, by House Resolution No.

549, Ninety-sixth Congress, Mar. 25, 1980. Committee on Energy and

Commerce of House of Representatives treated as referring to

Committee on Transportation and Infrastructure of House of

Representatives, in case of provisions of law relating to

railroads, railway labor, or railroad retirement and unemployment,

by section 1(c)(1) of Pub. L. 104-14, set out as a note preceding

section 21 of Title 2, The Congress.

Committee on Commerce of the Senate abolished and replaced by

Committee on Commerce, Science, and Transportation of the Senate,

effective Feb. 11, 1977. See Rule XXV of Standing Rules of the

Senate, as amended by Senate Resolution No. 4 (popularly cited as

the "Committee System Reorganization Amendments of 1977"), approved

Feb. 4, 1977.

-TRANS-

ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGANIZATION ACT OF

1973, AND TRANSFER OF FUNCTIONS

Special court abolished and all jurisdiction and functions

transferred to United States District Court for District of

Columbia, see section 719(b)(2) of this title.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 702, 717, 719 of this

title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

45 USC Sec. 719 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 719. Judicial review

-STATUTE-

(a) General

Notwithstanding any other provision of law, the final system plan

which is adopted by the Association and which becomes effective

after review by the Congress is not subject to review by any court

except in accordance with this section. After the final system plan

becomes effective under section 718 of this title, it may be

reviewed with respect to matters concerning the value of the rail

properties to be conveyed under the plan and the value of the

consideration to be received for such properties.

(b) Special court

(1) Within 30 days after January 2, 1974, the Association shall

make application to the judicial panel on multi-district litigation

authorized by section 1407 of title 28 for the consolidation in a

single, three-judge district court of the United States of all

judicial proceedings with respect to the final system plan. Within

30 days after such application is received, the panel shall make

the consolidation in a district court (cited herein as the "special

court") which the panel determines to be convenient to the parties

and the one most likely to be able to conduct any proceedings under

this section with the least delay and the greatest possible

fairness and ability. Such proceedings shall be conducted by the

special court which shall be composed of three Federal judges who

shall be selected by the panel, except that none of the judges

selected may be a judge assigned to a proceeding involving any

railroad in reorganization in the region under section 77 of the

Bankruptcy Act. The special court is authorized to exercise the

powers of a district judge in any judicial district with respect to

such proceedings and such powers shall include those of a

reorganization court. The special court shall have the power to

order the conveyance of rail properties of railroads leased,

operated, or controlled by a railroad in reorganization in the

region. The special court may issue rules for the conduct of any

proceedings under this section and under section 745 of this title,

including rules with respect to the time within which motions may

be filed, and with respect to appropriate representation of

interests not otherwise represented (including the Secretary with

respect to a petition by the Association in the case of a proposal

developed by the Secretary, under such section 745 of this title).

No determination by the panel under this subsection may be reviewed

in any court.

(2) The special court referred to in paragraph (1) of this

subsection is abolished effective 90 days after October 19, 1996.

On such effective date, all jurisdiction and other functions of the

special court shall be assumed by the United States District Court

for the District of Columbia. With respect to any proceedings that

arise or continue after the date on which the special court is

abolished, the references in the following provisions to the

special court established under this subsection shall be deemed to

refer to the United States District Court for the District of

Columbia:

(A) Subsections (c), (e)(1), (e)(2), (f) and (g) of this

section.

(B) Sections 712(d)(3), (g), 717(a)(1), (b)(1), (b)(2),

718(d)(2), 741(e)(2), (g), (k)(3), (k)(15), 743(a)(1), (a)(2),

(b)(1), (b)(6)(A), (c)(1), (c)(2), (c)(3), (c)(4), (c)(5),

744(a)(1)(B), (i)(3), 745(c), (d)(1), (d)(2), (d)(3), (d)(4),

(d)(5), (d)(8), (e), (f)(1), (f)(2)(B), (f)(2)(D), (f)(2)(E),

(f)(3), 746(a), (b), (c)(4), and 791(b)(3), (c) of this title).

(C) Sections 1105(a) and 1115 of this title.

(D) Sections 1323(2)(A)(iii), (2)(B), (2)(C), (3)(C), (3)(E),

(4)(A) and 1324(b) of this title.

(E) Section 24907(b) of title 49.

(F) Any other Federal law (other than this subsection and

section 605 of the Federal Courts Improvement Act of 1996),

Executive order, rule, regulation, delegation of authority, or

document of or relating to the special court as previously

established under paragraph (1) of this subsection.

(c) Delivery of plan to special court

Within 90 days after its effective date, the Association shall

deliver a certified copy of the final system plan to the special

court and shall certify to the special court -

(1) which rail properties of the respective railroads in

reorganization in the region and of any person leased, operated,

or controlled by such railroads in reorganization are to be

transferred to the Corporation, or any subsidiary thereof, in

accordance with the final system plan;

(2) which rail properties of the respective railroads in

reorganization in the region or person leased,(!1) operated, or

controlled by such railroads in reorganization are to be conveyed

to profitable railroads, in accordance with the final system

plan;

(3) the amount, terms, and value of the securities of the

Corporation or any subsidiary thereof (including any certificates

of value of the Association) to be exchanged for those rail

properties to be transferred to the Corporation or any subsidiary

thereof pursuant to the final system plan, and as indicated in

paragraph (1) of this subsection; and

(4) that the transfer of rail properties in exchange for

securities of the Corporation or any subsidiary thereof

(including any certificates of value of the Association) and

other benefits is fair and equitable and in the public interest.

Notwithstanding any other provisions of this subsection and

subsection (d) of this section, the time for the delivery of a

certified copy of the final system plan shall be March 12, 1976,

and may be extended to a date not more than 30 days thereafter,

prescribed in a notice filed by the Association not later than

February 17, 1976, with the special court, the Congress, and each

court referred to in such subsection (d) of this section. Such

notice shall contain the certification of the Association that an

orderly conveyance of rail properties cannot reasonably be effected

before the date for conveyance determined with respect to such

notice. The time prescribed in section 743(a) of this title shall

be determined with respect to the date prescribed in such notice.

(d) Bankruptcy courts

Within 90 days after its effective date, the Association shall

deliver a certified copy of the final system plan to each district

court of the United States or any other court having jurisdiction

over a railroad in reorganization in the region and shall certify

to each such court -

(1) which rail properties of that railroad in reorganization

are to be transferred to the Corporation or any subsidiary

thereof under the final system plan; and

(2) which rail properties of that railroad in reorganization,

if any, are to be conveyed to profitable railroads operating in

the region, under the final system plan.

(e) Original and exclusive jurisdiction

(1) Notwithstanding any other provision of law, any civil action

-

(A) for injunctive or other relief against the Association from

the enforcement, operation, or execution of this chapter or any

provision thereof, or from any action taken by the Association

pursuant to authority conferred or purportedly conferred under

this chapter;

(B) challenging the constitutionality of this chapter or any

provision thereof;

(C) challenging the legality of any action of the Association,

or any failure of the Association to take any action, pursuant to

authority conferred or purportedly conferred under this chapter;

(D) to obtain, inspect, copy, or review any document in the

possession or control of the Association that would be

discoverable in litigation pursuant to section 743(c) of this

title;

(E) brought after a conveyance, pursuant to section 743(b) of

this title, to set aside or annul such conveyance or to secure in

any way the reconveyance of any rail properties so conveyed; or

(F) with respect to continuing reorganization and supplemental

transactions, in accordance with section 745 of this title;

shall be within the original and exclusive jurisdiction of the

special court. The special court shall not hear or determine any

such action prior to the date of conveyance, pursuant to section

743(b)(1) of this title, except as the Constitution may require.

Relief shall not be granted in any action referred to in

subparagraph (A), (C), or (E) unless the person seeking such relief

establishes that the Association acted in reckless or deliberate

disregard of applicable law.

(2) The original and exclusive jurisdiction of the special court

shall include any action, whether filed by any interested person or

initiated by the special court itself, to interpret, alter, amend,

modify, or implement any of the orders entered by such court

pursuant to section 743(b) of this title in order to effect the

purposes of this chapter or the goals of the final system plan.

During the pendency of any proceeding described in this paragraph,

the special court may enter such orders as it determines to be

appropriate, including orders enjoining, restraining, conditioning,

or limiting any conveyance, transfer, or use of any asset or right

which is subject to such an order or which is at issue in such a

proceeding, or which involves the enforcement of any liens or

encumbrances upon such assets or rights. Any orders pursuant to

this paragraph which interpret, alter, amend, modify, or implement

orders entered by the special court shall be final and shall not be

restrained or enjoined by any court.

(3) An order or judgment of the United States District Court for

the District of Columbia in any action referred to in this section

shall be reviewable in accordance with sections 1291, 1292, and

1294 of title 28.

(f) Disposition of cash deposits

Whenever the compensation which is deposited with the special

court under section 743(a) of this title is in the form of cash,

such cash shall be invested and reinvested upon such terms and

conditions as the special court shall determine, pending the making

of the findings referred to in paragraphs (1), (2), and (3) of

section 743(c) of this title. Notwithstanding section 743(c)(4) of

this title, the special court may order (1) the income from such

investments, (2) the dividends or interest, if any, received on any

securities or obligations deposited with the special court under

such section 743(a) of this title, and (3) the income, if any,

received with respect to any other form of compensation so

deposited, to be distributed to the trustee of each railroad in

reorganization and to any person leased, operated or controlled by

such a railroad which conveyed the right, title, and interest in

the rail properties with respect to which such cash, securities,

obligations, or other compensation have been so deposited with the

special court. Notwithstanding section 743(c)(4) of this title, the

special court may, within 90 days after the date of conveyance of

rail properties pursuant to section 743(b) of this title, order up

to 25 percent of any cash (including investments made with cash)

and other compensation deposited with the special court to be

distributed to such trustee or person. On petition of the

applicable trustee or person, the special court may order such

additional distributions as it finds reasonable and appropriate,

prior to the making of the findings referred to in paragraphs (1),

(2), and (3) of such section 743(c) of this title.

(g) Stay of court proceedings

The special court may stay or enjoin any action or proceeding in

any State court or in any court of the United States other than the

Supreme Court or Court of Appeals for the District of Columbia

Circuit if such action or proceeding is contrary to any provision

of this chapter, impairs the effective implementation of this

chapter, or interferes with the execution of any order of the

special court pursuant to this chapter.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 209, Jan. 2, 1974, 87 Stat. 999;

Pub. L. 94-210, title VI, Secs. 602(a), (b), 607(i), (l), (r), (s),

Feb. 5, 1976, 90 Stat. 86, 97, 98; Pub. L. 94-216, Sec. 2, Feb. 17,

1976, 90 Stat. 191; Pub. L. 95-199, Sec. 3, Nov. 23, 1977, 91 Stat.

1423; Pub. L. 100-352, Sec. 6(d), June 27, 1988, 102 Stat. 663;

Pub. L. 104-317, title VI, Sec. 605(a), (b)(1), (c)(1), Oct. 19,

1996, 110 Stat. 3858, 3859.)

-REFTEXT-

REFERENCES IN TEXT

Section 77 of the Bankruptcy Act, referred to in subsec. (b)(1),

was classified to section 205 of former Title 11, Bankruptcy. The

Bankruptcy Act (act July 1, 1898, ch. 541, 30 Stat. 544, as

amended) was repealed effective Oct. 1, 1979, by Pub. L. 95-598,

Secs. 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of

which enacted revised Title 11. For current provisions relating to

railroad reorganization, see subchapter IV (Sec. 1161 et seq.) of

chapter 11 of Title 11.

Section 605 of the Federal Courts Improvement Act of 1996,

referred to in subsec. (b)(2)(F), is section 605 of Pub. L.

104-317, title VI, Oct. 19, 1996, 110 Stat. 3858, which amended

this section and sections 743, 745, 1104, and 1105 of this title

and enacted provisions set out as notes under this section.

-COD-

CODIFICATION

Amendment of subsec. (c)(2) by section 607(s) of Pub. L. 94-210

was executed by substituting "person leased" for "railroads leased"

to reflect the probable intent of Congress, notwithstanding such

section 607(s) requiring substitution of "person leased" for

"railroad leased".

-MISC1-

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-317, Sec. 605(a), designated

existing provisions as par. (1) and added par. (2).

Subsec. (e)(3). Pub. L. 104-317, Sec. 605(b)(1), added par. (3)

and struck out former par. (3) which read as follows: "A final

order or judgment of the special court in any action referred to in

this section shall be reviewable only upon petition for a writ of

certiorari to the Supreme Court of the United States. Such review

is exclusive and any such petition shall be filed in the Supreme

Court not more than 20 days after entry of such order or judgment."

Subsec. (g). Pub. L. 104-317, Sec. 605(c)(1)(A), inserted "or

Court of Appeals for the District of Columbia Circuit" after

"Supreme Court".

Subsec. (h). Pub. L. 104-317, Sec. 605(c)(1)(B), struck out

subsec. (h) relating to special masters.

1988 - Subsec. (e)(3). Pub. L. 100-352 struck out ", except that

any order or judgment enjoining the enforcement, or declaring or

determining the unconstitutionality or invalidity, of this chapter,

in whole or in part, or of any action taken under this chapter,

shall be reviewable by direct appeal to the Supreme Court of the

United States in the same manner that an injunctive order may be

appealed under section 1253 of title 28" before the period at end

of first sentence and substituted "such petition shall be filed in

the Supreme Court" for "petition or appeal shall be filed" in

second sentence.

1977 - Subsec. (h). Pub. L. 95-199 added subsec. (h).

1976 - Subsec. (b). Pub. L. 94-210, Sec. 602(a), substituted

provisions relating to issuance of rules by special court for

conduct of proceedings under this section and section 745 of this

title, for provisions relating to issuance of rules by panel for

conduct of its functions under this provision.

Subsec. (c). Pub. L. 94-210, Sec. 607(i), (l), (r), (s), inserted

"or any subsidiary thereof" after "Corporation" wherever appearing,

substituted "certificates of value" for "obligations" wherever

appearing, inserted provisions at end relating to the time for the

delivery of the final system plan on March 12, 1976, and conditions

for extension of such date, and substituted references to person

leased for references to railroad leased wherever appearing in

pars. (1) and (2). See Codification note above.

Subsec. (d)(1). Pub. L. 94-210, Sec. 607(i), inserted "or any

subsidiary thereof" after "Corporation".

Subsecs. (e) to (g). Pub. L. 94-210, Sec. 602(b), added subsecs.

(e) to (g).

EFFECTIVE DATE OF 1996 AMENDMENT

Section 605(e) of Pub. L. 104-317 provided that: "The amendments

made by subsections (b) and (c) of this section [amending this

section and sections 743, 745, 1104, and 1105 of this title] shall

take effect 90 days after the date of enactment of this Act [Oct.

19, 1996] and, except as provided in subsection (d) [enacting

provisions set out as a note below], shall apply with respect to

proceedings that arise or continue after such effective date."

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-352 effective ninety days after June 27,

1988, except that such amendment not to apply to cases pending in

Supreme Court on such effective date or affect right to review or

manner of reviewing judgment or decree of court which was entered

before such effective date, see section 7 of Pub. L. 100-352, set

out as a note under section 1254 of Title 28, Judiciary and

Judicial Procedure.

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

CASES PENDING IN SPECIAL COURT

Section 605(d) of Pub. L. 104-317 provided that: "Effective 90

days after the date of enactment of this Act [Oct. 19, 1996], any

case pending in the special court established under section 209(b)

of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 719(b))

shall be assigned to the United States District Court for the

District of Columbia as though the case had originally been filed

in that court. The amendments made by subsection (b) of this

section [amending this section and sections 743 and 1105 of this

title] shall not apply to any final order or judgment entered by

the special court for which -

"(1) a petition for writ of certiorari has been filed before

the date on which the special court is abolished; or

"(2) the time for filing a petition for writ of certiorari has

not expired before that date."

REFERENCES TO COURTHOUSE

Reference to United States Courthouse in District of Columbia

deemed reference to "E. Barrett Prettyman United States

Courthouse", see section 2 of Pub. L. 104-151, set out as an E.

Barrett Prettyman United States Courthouse Designation note under

section 8164 of Title 40, Public Buildings, Property, and Works.

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 718, 741, 743, 744, 745,

1104, 1323, 1324 of this title.

-MISC3-

RULES OF THE SPECIAL COURT, REGIONAL RAIL REORGANIZATION ACT OF

1973

Rules of the Special Court, Regional Rail Reorganization Act of

1973, formerly set out under this section, were omitted because the

Special Court was abolished effective 90 days after Oct. 19, 1996.

See subsec. (b)(2) of this section.

-FOOTNOTE-

(!1) See Codification note below.

-End-

-CITE-

45 USC Sec. 720 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 720. Obligations of Association

-STATUTE-

(a) General

To carry out the purposes of this chapter, the Association is

authorized to issue bonds, debentures, trust certificates,

securities, or other obligations (herein cited as "obligations") in

accordance with this section. Such obligations shall have such

maturities and bear such rate or rates of interest as are

determined by the Association with the approval of the Secretary of

the Treasury. Such obligations shall be redeemable at the option of

the Association prior to maturity in the manner stipulated in each

such obligation, and may be purchased by the Association in the

open market at a price which is reasonable.

(b) Maximum obligational authority

The aggregate principal amount (exclusive of interest or

additions to principal on account of accrual of interest) of

obligations issued by the Association under this section which may

be outstanding at any one time shall not exceed $395,000,000. No

obligations or proceeds thereof shall be issued or made available

after February 5, 1976, except -

(1) to meet existing or potential commitments for loans under

section 721 of this title made or applied for prior to January 1,

1976; and

(2) for the purpose of providing loans pursuant to subsections

(g) and (h) of section 721 of this title.

(c) Guarantees

The Secretary shall guarantee the payment of principal and

interest on all obligations issued by the Association in accordance

with this chapter and which the Association requests be guaranteed.

All guarantees entered into by the Secretary under this section

shall constitute general obligations of the United States for the

payment of which its full faith and credit are pledged.

(d) Validity

No obligation issued by the Association under this section shall

be terminated, canceled, or otherwise revoked, except in accordance

with lawful terms and conditions prescribed by the Association.

Such an obligation shall be conclusive evidence that it is in

compliance with this section, has been approved, and is legal as to

principal, interest, and other terms. An obligation of the

Association shall be valid and incontestable in the hands of a

holder, except as to fraud, duress, mutual mistake of fact, or

material misrepresentation by or involving such holder.

(e) The Secretary of the Treasury

If at any time the moneys available to the Secretary are

insufficient to enable him to discharge his responsibilities under

subsection (c) of this section or under subsection (a) of section

746 of this title, he shall issue notes or other obligations to the

Secretary of the Treasury in such forms and denominations, bearing

such maturities, and subject to such terms and conditions as may be

prescribed by the Secretary of the Treasury. Such obligations shall

bear interest at a rate to be determined by the Secretary of the

Treasury taking into consideration the current average market yield

on outstanding marketable obligations of the United States of

comparable maturities during the month preceding the issuance of

such obligations. The Secretary of the Treasury is authorized and

directed to purchase any such obligations and for such purposes is

authorized to use as a public debt transaction the proceeds from

the sale of any securities issued under chapter 31 of title 31. The

purposes for which securities may be issued under such chapter are

extended to include any purchase of notes or other obligations

issued under this subsection. At any time, the Secretary of the

Treasury may sell any such obligations, and all sales, purchases,

and redemptions of such obligations by the Secretary of the

Treasury shall be treated as public debt transactions of the United

States.

(f) Authorization for appropriations

There are hereby authorized to be appropriated to the Secretary

such amounts as are necessary to discharge the obligations of the

United States arising under this section.

(g) Lawful investments

All obligations issued by the Association shall be lawful

investments and may be accepted as security for all fiduciary,

trust, and public funds, the investment or deposit of which shall

be under the authority and control of the United States or any

officer or officers thereof. All such obligations issued pursuant

to this section shall be exempt securities within the meaning of

laws administered by the Securities and Exchange Commission.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 210, Jan. 2, 1974, 87 Stat. 1000;

Pub. L. 94-210, title VI, Secs. 604, 607(k), Feb. 5, 1976, 90 Stat.

88, 97; Pub. L. 94-555, title II, Sec. 203(e), Oct. 19, 1976, 90

Stat. 2620; Pub. L. 96-448, title VII, Sec. 703(f)(3), Oct. 14,

1980, 94 Stat. 1965.)

-COD-

CODIFICATION

In subsec. (e), "chapter 31 of title 31" and "such chapter"

substituted for "the Second Liberty Bond Act, as amended" and "such

Act", respectively, on authority of Pub. L. 97-258, Sec. 4(b),

Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted

Title 31, Money and Finance.

-MISC1-

AMENDMENTS

1980 - Subsec. (e). Pub. L. 96-448 inserted "or under subsection

(a) of section 746 of this title" after "subsection (c) of this

section".

1976 - Subsec. (b). Pub. L. 94-555 inserted "(exclusive of

interest or additions to principal on account of accrual of

interest)" after "aggregate principal amount", and raised maximum

amount allowed for outstanding obligations issued by Association to

$395,000,000.

Pub. L. 94-210, Sec. 604, substituted provisions authorizing

$275,000,000 as maximum of aggregate amount of obligations

outstanding at any one time and provisions relating to availability

or issuance after Feb. 5, 1976, for provisions authorizing

$1,500,000,000 as maximum of aggregate amount of obligations

outstanding at any one time and provisions relating to limitations

on amounts issued to Corporation and available for rehabilitation

and modernization of rail properties.

Subsec. (c). Pub. L. 94-210, Sec. 607(k), inserted provisions

relating to guarantees as general obligations of the United States

and pledge of full faith and credit for payment.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-448 effective Oct. 1, 1980, see section

710(a) of Pub. L. 96-448, set out as a note under section 1170 of

Title 11, Bankruptcy.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-555 effective Oct. 1, 1976, see section

303 of Pub. L. 94-555, set out as a note under section 702 of this

title.

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 721, 725 of this title.

-End-

-CITE-

45 USC Sec. 721 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 721. Loans

-STATUTE-

(a) General

The Association is authorized, in accordance with the provisions

of this section and such rules and regulations as it shall

prescribe, to make loans to the Corporation, the National Railroad

Passenger Corporation, and other railroads (including a railroad in

reorganization which has been found to be reorganizable under

section 77 of the Bankruptcy Act pursuant to section 717(b) of this

title) in the region, for purposes of achieving the goals of this

chapter; to a State or local or regional transportation authority

pursuant to section 763 (!1) of this title; and to provide

assistance in the form of loans to any railroad which (A) connects

with a railroad in reorganization, and (B) is in need of financial

assistance to avoid reorganization proceedings under section 77 of

the Bankruptcy Act. No such loan shall be made by the Association

to a railroad unless such loans shall, where applicable, be treated

as an expense of administration. The rights referred to in the last

sentence of section 77(j) of the Bankruptcy Act shall in no way be

affected by this chapter.

(b) Applications

Each application for such a loan shall be made in writing to the

Association in such form and with such content and other

submissions as the Association shall prescribe to protect

reasonably the interests of the United States. The Association

shall publish a notice of the receipt of each such application in

the Federal Register and shall afford interested persons an

opportunity to comment thereon.

(c) Terms and conditions

Each loan shall be extended in such form, under such terms and

conditions, and pursuant to such regulations as the Association

deems appropriate. Such loan shall bear interest at a rate not less

than the greater of a rate determined by the Secretary of the

Treasury taking into consideration (1) the rate prevailing in the

private market for similar loans as determined by the Secretary of

the Treasury, or (2) the current average yield on outstanding

marketable obligations of the Association with remaining periods of

maturity comparable to the average maturities of such loans, plus

such additional charge, if any, toward covering costs of the

Association as the Association may determine to be consistent with

the purposes of this chapter.

(d) Modifications

The Association is authorized to approve any modification of any

provision of a loan under this section, including the rate of

interest, time of payment of interest or principal, security, or

any other term or condition, upon agreement of the recipient of the

loan and upon a finding by the Association that such modification

is equitable and necessary or appropriate to achieve the policy

declared in subsection (f) of this section. Notwithstanding any

other provision of this section, in the case of a loan made under

subsection (a) of this section to a railroad in the region, the

Association is not required to make the findings with respect to

subsections (e)(3) and (f) of this section and may, upon the

request of such railroad -

(1) continue to make advances to such railroad pursuant to such

loan, up to the total principal provided, as of November 8, 1978,

under the agreement between such railroad and the Association

under this section, upon finding only that (A) a good faith

effort has been commenced by such railroad toward the

establishment of an employee stock ownership plan, and (B) such

continued advances will permit the continuation of rail service

determined by the Association, in the Final System Plan or under

the goals of this chapter, to be desirable; and

(2) increase the principal amount of such loan to such

railroad, in an amount not to exceed $7,500,000, only if the

Association makes the finding referred to in paragraph (1)(B) of

this subsection and determines that such railroad is making a

good faith effort to establish an employee stock ownership plan

for review and approval by the Association. Any such approval

shall be conditioned upon a written commitment that by December

31, 1980, the railroad will adopt an employee stock ownership

plan which will acquire qualifying employer securities with a

fair market value of $250,000.

The Association may not take any action pursuant to the preceding

sentence of this subsection after December 31, 1981.

(e) Prerequisites

The Association shall make a finding in writing, before making a

loan to any applicant under this section, that -

(1) the loan is necessary to achieve the goals of this chapter

or to prevent insolvency;

(2) it is satisfied that the business affairs of the applicant

will be conducted in a reasonable and prudent manner; and

(3) the applicant has offered such security as the Association

deems necessary to protect reasonably the interests of the United

States.

(f) Policy

It is the intent of Congress that loans made under this section

shall be made on terms and conditions which furnish reasonable

assurance that the Corporation or the railroads to which such loans

are granted will be able to repay them within the time fixed and

that the goals of this chapter are reasonably likely to be

achieved.

(g) Pre-conveyance loans to Corporation

During the period between the effective date of the final system

plan and the date of the conveyance of rail properties pursuant to

section 743(b) of this title, the Association may make such loans

in such amounts to the Corporation as the Association deems

essential to provide for the purchase by the Corporation of

material, supplies, equipment, and services necessary to permit the

orderly and efficient implementation of the final system plan.

Notwithstanding any inability of the Association during such period

to make the finding required by subsection (e)(3) of this section

because of any existing contingencies, the Association may make any

such loans to the Corporation, subject to -

(1) the most favorable terms and conditions for assuring timely

repayment and security as may then be reasonably available, and

(2) the requirement that any loan to the Corporation under this

subsection be refinanced immediately out of the proceeds of the

first sale by the issuance of debentures under section 726 of

this title.

In order to assure that necessary funds are available to the

Corporation for implementation of the final system plan, the

Corporation is authorized to accept such loans as may be approved

by the Association under this subsection, and any such acceptance

shall be deemed for all purposes to constitute a reasonable and

prudent business judgment in compliance with any fiduciary

obligations imposed on the Corporation or its directors. For

purposes of this subsection, the term "Corporation" includes a

subsidiary of the Corporation.

(h) Loans for payment of obligations

(1)(A) The Association is authorized, subject to the limitations

set forth in section 720(b) of this title, to enter into loan

agreements, in amounts not to exceed, at any given time,

$350,000,000 in the aggregate principal amount, with the

Corporation, the National Railroad Passenger Corporation, and any

profitable railroad to which rail properties are transferred or

conveyed pursuant to section 743(b)(1) of this title, under which

the Corporation, the National Railroad Passenger Corporation, and

any profitable railroad entering into such agreement will agree to

meet existing or prospective obligations of the railroads in

reorganization in the region which the Association, in accordance

with procedures established by the Association, determines should

be paid by the Corporation, the National Railroad Passenger

Corporation, or a profitable railroad, on behalf of such railroads

in reorganization, in order to avoid disruptions in ordinary

business relationships. Such obligations shall be limited to -

(i) amounts claimed by suppliers (including private car lines)

of materials or services utilized or purchased in current rail

operations;

(ii) claims by shippers arising from current rail services;

(iii) payments to railroads for settlement of current interline

accounts and all other current accounts and obligations;

(iv) claims of employees arising under the

collective-bargaining agreements of the railroads in

reorganization in the region and subject to section 153 of this

title (including claims for accrued vacation and wages and

similar claims arising in connection with labor and services

performed);

(v) claims of all employees or their personal representatives

for personal injuries or death and subject to the provisions of

Employers' Liability Act (45 U.S.C. 51-60);

(vi) amounts required for adequate funding of accrued pension

benefits existing at the time of a conveyance or discontinuance

of service under employee pension benefit plans described in

section 775(a) (!2) of this title;

(vii) amounts required to provide adequate funding for payment,

when due, of claims deriving from membership in any employee

voluntary relief plan which provides benefits to its members and

their beneficiaries in the event of sickness, accident,

disability, or death, and to which both a railroad in

reorganization and employee members have made contributions;

(viii) amounts required to provide adequate funding for

continuation, by the Corporation, of medical and life insurance

coverage and benefits for retired employees of railroads in

reorganization as required and limited by section 743(b)(6)(B) of

this title.(!3)

(ix) amounts required to discharge the obligations of each such

railroad in reorganization to nonemployee claimants for personal

injuries suffered during the period such railroad has been in

reorganization; and

(x) amounts required to discharge any obligation of a railroad

in reorganization in the region to the National Railroad

Passenger Corporation, arising out of a contract between such

railroad in reorganization and such Corporation under which such

railroad in reorganization is required to provide a suitable rail

passenger station, in any case in which such railroad in

reorganization sold a rail passenger station pursuant to a

judicial order of condemnation prior to April 1, 1976.

(B) The Association shall make a loan pursuant to subparagraph

(A) of this paragraph if, notwithstanding any other requirement of

this subsection, it finds that the Corpration,(!4) the National

Railroad Passenger Corporation, or a profitable railroad is

entitled to a loan pursuant to section 743(b)(6), 774(e), or 774(g)

(!2) of this title, or if, with respect to an obligation referred

to in subparagraph (A) of this paragraph, it finds that -

(i) provision for the payment of such obligation was not

included in the financial projections of the final system plan;

(ii) such obligation arose from rail operations prior to the

date of conveyance of rail properties pursuant to section

743(b)(1) of this title and is, under other applicable law, the

responsibility of a railroad in reorganization in the region, and

a claim is presented to a railroad in reorganization in the

region, or the Corporation within 2 years after October 19, 1976;

(iii) the Corporation, the National Railroad Passenger

Corporation, or a profitable railroad has advised the Association

that the direct payment of such obligation by the Corporation,

the National Railroad Passenger Corporation, or a profitable

railroad is for services or materials, the furnishing of which

served to avoid disruptions in ordinary business relationships

prior to the date of conveyance of rail properties pursuant to

section 743(b)(1) of this title, or is necessary to avoid

postconveyance disruptions in ordinary business relationships;

(iv) the transferor is unable to pay such obligation within a

reasonable period of time; and

(v) with respect to loans made to the Corporation, the

procedures to be followed by the Corporation, in seeking

reimbursement from a railroad in reorganization in the region for

an obligation paid on its behalf under this subsection, have been

jointly agreed to by the Finance Committee and the Corporation,

and the joint agreement -

(I) provides for the Corporation to receive reimbursement

from the Association for any expenses incurred in seeking

reimbursement from any railroad in reorganization in the region

for an obligation paid on its behalf under this subsection; and

(II) includes a stipulation of the exact procedures the

Corporation shall undertake to avoid the finding, referred to

in paragraph (6)(A)(i) of this subsection, that it has not

exercised due diligence.

(2) The trustees of each railroad in reorganization in the region

shall attempt to negotiate agency agreements with the Corporation,

the National Railroad Passenger Corporation, or a profitable

railroad for the processing of all accounts receivable and accounts

payable attributable to operations prior to the conveyance of

property pursuant to section 743(b)(1) of this title and for the

payment of only those accounts payable which relate to obligations

of the estates identified in paragraph (1) of this subsection. If

any railroad in reorganization in the region fails to conclude such

an agreement within a reasonable time prior to such conveyance, the

applicable reorganization courts, after giving all parties an

opportunity to be heard, shall prescribe the terms of such an

agency arrangement by order, giving due consideration to the need,

wherever possible, to make such agreements uniform among the

various estates. Nothing in this subsection shall be construed as

permitting any district court of the United States having

jurisdiction over the reorganization of a railroad in

reorganization in the region to enjoin, restrain, or limit the

Corporation, the National Railroad Passenger Corporation, or a

profitable railroad from applying, to payment of the obligations of

the estates identified in paragraph (1) of this subsection, amounts

collected as (A) accounts receivable pursuant to this paragraph,

(B) cash or other current assets identified pursuant to paragraph

(3) of this subsection, or (C) proceeds of loans pursuant to

paragraph (1) of this subsection. Any agency agreement executed

prior to October 19, 1976, shall be deemed amended to the extent

necessary to conform such agreement or order to the provisions of

this paragraph. Nothing in this paragraph shall be construed to

affect any payment made prior to October 19, 1976, with respect to

obligations other than those identified in paragraph (1) of this

subsection.

(3) The Association may, not less than 30 days prior to the date

of conveyance pursuant to section 743(b)(1) of this title, petition

each district court of the United States having jurisdiction over

the reorganization of a railroad in reorganization in the region

for an order, which shall be entered prior to such conveyance, and

which -

(A) identifies that cash and other current assets of the estate

of such railroad which shall be utilized to satisfy obligations

of the estates identified in paragraph (1) of this subsection;

and

(B) provides for the application by the trustees of such

railroads and their agents, consistent with the principles of

reorganization under section 77 of the Bankruptcy Act and with

the agency agreement specified in paragraph (2) of this

subsection, of all such current assets, including cash available

as of or subsequent to such date of conveyance, to the payment in

the postconveyance period of the obligations of the estates

identified in paragraph (1) of this subsection.

(4)(A) Each obligation of a railroad in reorganization in the

region which is paid with financial assistance under paragraph (1)

of this subsection shall be processed, on behalf of such railroad,

by the Corporation, the National Railroad Passenger Corporation, or

a profitable railroad, whichever is appropriate. An obligation of a

railroad in reorganization in the region shall be paid, on behalf

of such railroad, by the Corporation, the National Railroad

Passenger Corporation, or a profitable railroad, whichever is

appropriate, if -

(i) such obligation is deemed by the Corporation, the National

Railroad Passenger Corporation, or a profitable railroad,

whichever is appropriate, to have been, on the date of conveyance

of rail properties pursuant to section 743(b)(1) of this title,

the obligation of a railroad in reorganization in the region;

(ii) such obligation accrues after such date of conveyance but

as a result of rail operations conducted prior to such date, and

the trustees of such railroad in reorganization acknowledge that

it is an obligation of such railroad; or

(iii) the district court of the United States having

jurisdiction over such railroad in reorganization in the region

approves such obligation as a valid administrative claim against

such railroad;

to the extent that payment is required under a loan agreement with

the Association under such paragraph (1).

(B) The Association shall resolve any disputes among the

Corporation, the National Railroad Passenger Corporation, and a

profitable railroad concerning which of them shall process and pay

any particular obligation on behalf of a particular railroad in

reorganization.

(C) The Corporation, the National Railroad Passenger Corporation,

or a profitable railroad shall have a direct claim, as a current

expense of administration, for reimbursement from the estate of a

railroad in reorganization in the region for all obligations of

such estate (plus interest thereon) which are paid by the

Corporation, the National Railroad Passenger Corporation, or a

profitable railroad, as the case may be. The right of the

Corporation or the National Railroad Passenger Corporation to

receive reimbursement under this subparagraph from the estate of a

railroad in reorganization in the region shall be reduced by the

amount, if any, of loans, plus interest forgiven under paragraph

(5) of this subsection.

(D)(i) Except as provided in clause (ii) of this subparagraph,

any funds held in an escrow account by a railroad in reorganization

on October 19, 1976, which are thereafter determined to be cash and

other current assets of the estate of such railroad in

reorganization, for purposes of paragraph (3) of this subsection,

shall be applied as follows -

(I) first, to the reduction of any outstanding loans to the

Corporation by the Association, pursuant to paragraph (1) of this

subsection, the proceeds of which were used to discharge

obligations of such railroad in reorganization;

(II) second, to the Association to the extent of any such loans

which have been forgiven pursuant to paragraph (5) of this

subsection; and

(III) third, to the payment of any remaining obligations of

such railroad in reorganization, in accordance with the provision

of the agency agreement entered into pursuant to paragraph (2) of

this subsection.

(ii) The manner of disposition set forth in clause (i) of this

subparagraph shall not apply with respect to a railroad in

reorganization if the Secretary (I) determines that a different

disposition of assets is necessary to carry out a reorganization

plan of such railroad in reorganization, and that such different

disposition adequately protects the interests of the United States,

and (II) transmits his determination to the court having

jurisdiction over the reorganization of such railroad.

(5)(A) If, at any time, the Finance Committee of the Association

determines that the failure of the Corporation to receive full

reimbursement with interest from the estate of a railroad in

reorganization in the region for any obligation of such estate paid

pursuant to this subsection could adversely affect the fairness and

equity of the transfers and conveyances pursuant to section

743(b)(1) of this title, or that the failure of the National

Railroad Passenger Corporation to receive such full reimbursement

plus interest for any such obligation would be contrary to the

public interest, the Association shall forgive the indebtedness,

plus accrued interest, of the Corporation or of the National

Railroad Passenger Corporation incurred pursuant to paragraph (1)

of this subsection in the amount recommended by the Finance

Committee. The Association shall have a direct claim, as a current

expense of administration of the estate of such railroad in

reorganization, equal to the amount by which loans of the

Corporation or of the National Railroad Passenger Corporation, plus

interest, have been forgiven. Such direct claim shall not be

subject to any reduction by way of setoff, cross-claim, or

counter-claim which the estate of such railroad in reorganization

may be entitled to assert against the Corporation, the National

Railroad Passenger Corporation, the Association, or the United

States.

(B) The direct claim of the Association under this paragraph, and

any direct claim authorized under paragraph (4) of this subsection,

shall be prior to all other administrative claims of the estate of

a railroad in reorganization, except claims arising under trustee's

certificates or from default on the payment of such certificates.

The Corporation, the National Rail Passenger Corporation, or a

profitable railroad, as the case may be, shall, with respect to

each direct claim for reimbursement pursuant to paragraph (4) of

this subsection, file a proof of administrative expense claim with

the trustees of the railroad in reorganization from whom

reimbursement is sought. Each such proof of administrative expense

claim shall set forth, by category and amount, the obligations of

such railroad in reorganization which were paid pursuant to such

paragraph (4).

(6)(A) Notwithstanding any other provision of this subsection,

the Association shall forgive any loan made to the Corporation or

the National Railroad Passenger Corporation pursuant to this

subsection, plus accrued interest thereon, on the 3rd anniversary

date of any such loan, except that the Association shall not

forgive any loan or portion thereof, in accordance with this

paragraph, if -

(i) the Finance Committee makes an affirmative finding, with

respect to such loan or portion thereof, that -

(I) the Corporation has not exercised due diligence in

executing the procedures adopted pursuant to paragraph

(1)(B)(v) of this subsection, and

(II) the failure of the Association to forgive such loan or

portion thereof will not adversely affect the ability of the

Corporation to become financially self-sustaining;

(ii) the Finance Committee so directs the Association; and

(iii) neither House of the Congress disapproves such

affirmative finding and direction, in accordance with the

following provisions of this paragraph.

A copy of each such finding, the reasons therefor, and such

direction made by the Finance Committee, together with the comments

and recommendations thereon of the Board of Directors of the

Association, shall be transmitted to the Congress by the

Association within 10 days after the date on which the Finance

Committee makes such finding and direction, or if not so

transmitted, shall be transmitted by the Finance Committee. Each

such finding and direction so transmitted shall become effective

immediately, and shall remain in effect, unless, within the first

period of 30 calendar days of continuous session of Congress after

the date of transmittal of such finding and direction to Congress,

either House of Congress disapproves such finding and direction in

accordance with the procedures specified in section 688 of title 2.

For purposes of this paragraph, continuity of session of Congress

is broken only in the circumstances described in section 682(5) of

title 2.

(B) The Association shall have a direct claim, as a current

expense of administration of the estate of the railroad in

reorganization whose obligations were paid with the proceeds of

loans forgiven under this paragraph, equal to the amount by which

the loans, plus interest, have been forgiven. Such direct claim

shall not be subject to any reduction by way of setoff,

cross-claim, or counterclaim which the estate of such railroad in

reorganization may be entitled to assert against the Corporation,

the National Railroad Passenger Corporation, the Association, or

the United States. The direct claim of the Association under this

paragraph shall be prior to all other administrative claims of the

estate of the railroad in reorganization, except claims arising

under trustee's certificates or from default on the payment of such

certificates.

(7) For purposes of this subsection, the term "Corporation"

includes a subsidiary of the Corporation.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 211, Jan. 2, 1974, 87 Stat. 1001;

Pub. L. 94-5, Sec. 5, Feb. 28, 1975, 89 Stat. 8; Pub. L. 94-210,

title VI, Sec. 606, Feb. 5, 1976, 90 Stat. 92; Pub. L. 94-555,

title II, Secs. 203(a)-(d), 220(a), Oct. 19, 1976, 90 Stat. 2617,

2619, 2620, 2629; Pub. L. 95-611, Sec. 3(a), Nov. 8, 1978, 92 Stat.

3089; Pub. L. 96-73, title II, Sec. 204(b), Sept. 29, 1979, 93

Stat. 556; Pub. L. 96-101, Sec. 23, Nov. 4, 1979, 93 Stat. 746;

Pub. L. 96-448, title IV, Secs. 407, 408, Oct. 14, 1980, 94 Stat.

1948; Pub. L. 105-178, title VII, Sec. 7203(b)(3), June 9, 1998,

112 Stat. 477.)

-REFTEXT-

REFERENCES IN TEXT

Section 77 of the Bankruptcy Act, referred to in subsecs. (a) and

(h)(3)(B), was classified to section 205 of former Title 11,

Bankruptcy. The Bankruptcy Act (act July 1, 1898, ch. 541, 30 Stat.

544, as amended) was repealed effective Oct. 1, 1979, by Pub. L.

95-598, Secs. 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section

101 of which enacted revised Title 11. For current provisions

relating to railroad reorganization, see subchapter IV (Sec. 1161

et seq.) of chapter 11 of Title 11.

Section 763 of this title, referred to in subsec. (a), was

repealed by Pub. L. 94-210, title VIII, Sec. 806, Feb. 5, 1976, 90

Stat. 143, eff. Apr. 1, 1978.

The Employers' Liability Act (45 U.S.C. 51-60), referred to in

subsec. (h)(1)(A)(v), is act Apr. 22, 1908, ch. 149, 35 Stat. 65,

as amended, and is classified generally to chapter 2 (Sec. 51 et

seq.) of this title. For complete classification of this Act to the

Code, see Short Title note set out under section 51 of this title

and Tables.

Sections 774 and 775 of this title, referred to in subsec.

(h)(1)(A)(vi), (B), were repealed by Pub. L. 97-35, title XI, Sec.

1144(a)(1), Aug. 13, 1981, 95 Stat. 669.

-COD-

CODIFICATION

In the closing par. of subsec. (h)(6)(A), "section 688 of title

2" and "section 682(5) of title 2" substituted for "section 1017 of

the Congressional Budget and Impoundment Control Act of 1974 (31

U.S.C. 1407)" and "section 1011(5) of that Act (31 U.S.C.

1401(5))", respectively, to reflect the transfer of sections 1407

and 1401 of former Title 31, Money and Finance, to sections 688 and

682 of Title 2, the Congress.

-MISC1-

AMENDMENTS

1998 - Subsec. (i). Pub. L. 105-178 struck out heading and text

of subsec. (i). Text read as follows: "Upon application by the

Corporation or any other railroad, the Secretary shall, pursuant to

the provisions of and within the obligational limitations contained

in sections 831 through 833 of this title, guarantee obligations of

the Corporation or such railroad for the purpose of electrifying

high-density mainline routes if the Secretary finds that such

electrification will return operating and financial benefits to the

Corporation or such railroad and will facilitate compatibility with

existing or renewed electrification systems. Upon application by

the Corporation or by any railroad in reorganization in the region

which receives a loan under subsection (a) of this section, the

Secretary shall, pursuant to the provisions of and within the

obligational limitations contained in sections 831 through 833 of

this title, guarantee obligations of the Corporation or such

railroad for purposes of making capital improvements to coal export

facilities. The aggregate unpaid principal amount of obligations

which may be guaranteed by the Secretary under this paragraph shall

not exceed $200,000,000 at any one time."

1980 - Subsec. (d). Pub. L. 96-448, Sec. 408, substituted

"Association is not required to make the findings with respect to

subsections (e)(3) and (f) of this section and may" for

"Association may" in provision preceding par. (1), "$7,500,000" for

"$4,000,000" in par. (2), and "December 31, 1981" for "December 31,

1980" in provision following par. (2).

Subsec. (i). Pub. L. 96-448, Sec. 407, substituted "Corporation

or any other railroad, the Secretary" for "Corporation, the

Secretary", "Corporation or such railroad for the purpose" for

"Corporation for the purpose", and "Corporation or such railroad

and will facilitate" for "Corporation and will facilitate" and

inserted provision authorizing the Secretary, upon application and

with regard to obligational limitations, to guarantee obligations

of the Corporation or such railroad for the purposes of making

capital improvements to coal export facilities.

1979 - Subsec. (d)(2). Pub. L. 96-101 substituted "$4,000,000"

for "$2,000,000", "and determines that such railroad is making a

good faith effort to establish an employee stock ownership plan for

review and approval by the Association" for "and such railroad has

in effect an employee stock ownership plan which has been approved

by the Association", and "December 31, 1980" for "December 31,

1979" and inserted provision requiring that any such approval be

conditioned upon a written commitment that by December 31, 1980,

the railroad will adopt an employee stock ownership plan which will

acquire qualifying employer securities with a fair market value of

$250,000.

Subsec. (h)(1)(A)(viii). Pub. L. 96-73, Sec. 204(b)(1),

substituted "funding for continuation, by the Corporation, of

medical and life insurance coverage and benefits for retired

employees of railroads in reorganization as required and limited by

section 743(b)(6)(B) of this title" for "funding for payment, when

due, of medical and life insurance benefits for employees (whether

or not their employment was governed by a collective bargaining

agreement) on account of their service with a railroad in

reorganization prior to the date of conveyance pursuant to section

743(b)(1) of this title, and for individuals who retired, prior to

such date of conveyance, from service with a railroad in

reorganization".

Subsec. (h)(6). Pub. L. 96-73, Sec. 204(b)(2)(A)-(C),

redesignated existing provisions as subpar. (A), and in subpar. (A)

as so redesignated, redesignated former subpars. (A) to (C) as cls.

(i) to (iii), respectively, and former cls. (i) and (ii) of former

subpar. (A) as subcls. (I) and (II) of cl. (i), respectively, and

added subpar. (B).

1978 - Subsec. (d). Pub. L. 95-611 inserted provision authorizing

increase of loans to railroads until Dec. 31, 1979.

1976 - Subsec. (g). Pub. L. 94-210 added subsec. (g).

Subsec. (h). Pub. L. 94-210 added subsec. (h).

Subsec. (h)(1). Pub. L. 94-555, Sec. 203(a), increased aggregate

principal amount of loan agreements, at any given time, to

$350,000,000; substituted "such railroads in reorganization" for

"the transferors" after "railroad, in behalf of"; struck out "and

obligations" after "all other current accounts"; inserted

"(including claims for accrued vacation and wages and similar

claims arising in connection with labor and services performed)"

after "section 153 of this title"; added clauses (vii) to (x) to

subpar. (A); authorized Association to make loans pursuant to

subpar. (A), as amended, and inserted reference to section

743(b)(6) of this title; inserted provisions that claim arising

prior to conveyance of rail properties must be presented to a

railroad in reorganization in the region, or the Corporation within

2 years after Oct. 19, 1976, and that loan requested is for direct

payment made for services or materials, the furnishing of which

avoided disruption of ordinary business relationships prior to date

of conveyance or made to avoid postconveyance disruptions; and

added subcls. (I) and (II) to cl. (V) relating to provisions to be

included in joint agreement between Finance Committee and the

Corporation.

Subsec. (h)(2). Pub. L. 94-555, Sec. 203(b), inserted "and for

the payment of only those accounts payable which relate to the

obligations of the estates identified in paragraph (1) of this

subsection" after "section 743(b)(1) of this title", and inserted

provisions relating to the jurisdiction of district courts in

railroad reorganization proceedings.

Subsec. (h)(4)(D). Pub. L. 94-555, Sec. 203(c), added subpar.

(D).

Subsec. (h)(5)(B). Pub. L. 94-555, Sec. 203(d), inserted

provisions relating to filing proof of claim for administrative

expense.

Subsec. (h)(6)(A)(i). Pub. L. 94-555, Sec. 220(a), substituted

"paragraph (1)(B)(v)" for "paragraph (1)(E)".

Subsec. (i). Pub. L. 94-210 added subsec. (i).

1975 - Subsec. (a). Pub. L. 94-5, Sec. 5(a), substituted "for

purposes of achieving the goals of this chapter" for "for purposes

of assisting in the implementation of the final system plan".

Subsec. (e)(1). Pub. L. 94-5, Sec. 5(b), substituted "achieve the

goals of this chapter" for "carry out the final system plan".

Subsec. (f). Pub. L. 94-5, Sec. 5(c), substituted "goals of this

chapter" for "goals of the final system plan".

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-448 effective Oct. 1, 1980, see section

710(a) of Pub. L. 96-448, set out as a note under section 1170 of

Title 11, Bankruptcy.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-73 effective Nov. 4, 1978, see section

501(b) of Pub. L. 96-73, set out as a note under section 743 of

this title.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-555 effective Oct. 1, 1976, see section

303 of Pub. L. 94-555, set out as a note under section 702 of this

title.

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 720, 726, 743, 797h, 1112

of this title; title 49 section 306.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) See References in Text note below.

(!3) So in original. The period probably should be a semicolon.

(!4) So in original. Should be "Corporation,".

-End-

-CITE-

45 USC Sec. 722 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 722. Records, audit, and examination

-STATUTE-

(a) Records

Each recipient of financial assistance under this subchapter,

whether in the form of loans, obligations, or other arrangements,

shall keep such records as the Association or the Secretary shall

prescribe, including records which fully disclose the amount and

disposition by such recipient of the proceeds of such assistance

and such other records as will facilitate an effective audit.

(b) Audit and examination

The Association, the Secretary, and the Comptroller General of

the United States, or any of their duly authorized representatives

shall, until the expiration of 3 years after the implementation of

the final system plan, have access for the purpose of audit and

examination to any books, documents, papers, and records of such

recipients which in the opinion of the Association, the Secretary,

or the Comptroller General may be related or pertinent to the

loans, obligations or other arrangements referred to in subsection

(a) of this section. The Association or any of its duly authorized

representatives shall, until any financial assistance received

under this subchapter has been repaid to the Association, have

access to any such materials which concern any matter that may bear

upon -

(1) the ability of the recipient of such financial assistance

to make repayment within the time fixed therefor;

(2) the effectiveness with which the proceeds of such

assistance is used; and

(3) the implementation of the final system plan and the

realization of the declaration of policy of this chapter.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 212, Jan. 2, 1974, 87 Stat. 1002.)

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-End-

-CITE-

45 USC Sec. 723 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 723. Emergency assistance pending implementation

-STATUTE-

(a) Emergency assistance

The Secretary is authorized, pending the implementation of the

final system plan, to pay to the trustees of railroads in

reorganization such sums as are necessary for the continued

provision of essential transportation services by such railroads.

Such payments shall be made by the Secretary upon such reasonable

terms and conditions as the Secretary establishes, except that

recipients must agree to maintain and provide service at a level no

less than that in effect on January 2, 1974. Where the Secretary

and the trustees agree that funds provided pursuant to this section

are to be used (together with funds provided pursuant to section

725 of this title, if any) to perform program maintenance on

designated rail properties until the date rail properties are

conveyed under this chapter or to improve such designated

properties, such agreement shall contain the conditions set forth

in section 725(b) of this title.

(b) Authorization of appropriations

There are authorized to be appropriated to the Secretary for

carrying out this section such sums as are necessary, not to exceed

$282,000,000, to remain available until expended. Of amounts

authorized to be appropriated under this subsection, $50,000,000

shall be available solely to pay to the trustees of railroads in

reorganization such sums as may be necessary to provide such

railroads with amounts equal to revenues attributable to tariff

increases proposed by such railroads and suspended by the

Interstate Commerce Commission during the calendar year 1975, if

the Secretary determines that such payments are necessary to carry

out this section.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 213, Jan. 2, 1974, 87 Stat. 1003;

Pub. L. 94-5, Sec. 6, Feb. 28, 1975, 89 Stat. 8.)

-MISC1-

AMENDMENTS

1975 - Subsec. (a). Pub. L. 94-5, Sec. 6(a), inserted provision

that, where Secretary and trustees agree that funds provided

pursuant to this section are to be used (together with funds

provided pursuant to section 725 of this title, if any) to perform

program maintenance on designated rail properties until date rail

properties are conveyed under this chapter or to improve such

designated properties, such agreement contain conditions set forth

in section 725(b) of this title.

Subsec. (b). Pub. L. 94-5, Sec. 6(b), substituted "$282,000,000"

for "$85,000,000" and inserted provision that, of amounts

authorized to be appropriated under this subsection $50,000,000 be

available solely to pay to trustees of railroads in reorganization

sums necessary to provide railroads with amounts equal to revenues

attributable to tariff increases proposed by railroads and

suspended by Interstate Commerce Commission during calendar year

1975, if Secretary determines that payments are necessary to carry

out this section.

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 725, 743 of this title.

-End-

-CITE-

45 USC Sec. 724 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 724. Authorization of appropriations

-STATUTE-

(a) Secretary

There are authorized to be appropriated to the Secretary for

purposes of preparing the reports and exercising other functions to

be performed by him under this chapter such sums as are necessary,

not to exceed $12,500,000, to remain available until expended.

There are authorized to be appropriated to the Secretary such sums

as may be necessary to discharge the obligations of the United

States arising under section 743(c)(5) of this title.

(b) Office

There are authorized to be appropriated to the Commission for the

use of the Office in carrying out its functions under this chapter

such sums as are necessary, not to exceed $7,000,000, to remain

available until expended. The budget for the Office shall be

submitted by the Commission directly to the Congress and shall not

be subject to review of any kind by any other agency or official of

the United States. Moneys appropriated for the Office shall not be

withheld by any agency or official of the United States or used by

the Commission for any purpose other than the use of the Office. No

part of any other moneys appropriated to the Commission shall be

withheld by any other agency or official of the United States to

offset any moneys appropriated pursuant to this subsection.

(c) Association

There are authorized to be appropriated to the Association for

purposes of carrying out its administrative expenses under this

chapter not to exceed $13,000,000 for the fiscal year ending

September 30, 1982, and not to exceed $4,000,000 for the fiscal

year ending September 30, 1983. Sums appropriated under this

subsection are authorized to remain available until expended.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 214, Jan. 2, 1974, 87 Stat. 1003;

Pub. L. 93-488, Sec. 1(c), Oct. 26, 1974, 88 Stat. 1464; Pub. L.

94-210, title VI, Sec. 607(m), (n), Feb. 5, 1976, 90 Stat. 97; Pub.

L. 94-436, Sec. 1, Sept. 30, 1976, 90 Stat. 1398; Pub. L. 95-199,

Sec. 1, Nov. 23, 1977, 91 Stat. 1423; Pub. L. 95-611, Sec. 1, Nov.

8, 1978, 92 Stat. 3089; Pub. L. 96-73, title II, Sec. 201, Sept.

29, 1979, 93 Stat. 555; Pub. L. 96-448, title VII, Sec. 704, Oct.

14, 1980, 94 Stat. 1965; Pub. L. 97-35, title XI, Sec. 1151, Aug.

13, 1981, 95 Stat. 676.)

-MISC1-

AMENDMENTS

1981 - Subsec. (c). Pub. L. 97-35 substituted provisions relating

to authorization of appropriations for fiscal years ending Sept.

30, 1982, and 1983, for provisions relating to authorization of

appropriations for fiscal year ending Sept. 30, 1981.

1980 - Subsec. (c). Pub. L. 96-448 substituted provision

authorizing appropriations of not to exceed $30,000,000 for fiscal

year ending Sept. 30, 1981, for provision authorizing

appropriations of not to exceed $28,500,000 for fiscal year ending

Sept. 30, 1980.

1979 - Subsec. (c). Pub. L. 96-73 substituted appropriations

authorization of $28,500,000 for fiscal year ending Sept. 30, 1980

for $27,200,000 for fiscal year ending Sept. 30, 1979.

1978 - Subsec. (c). Pub. L. 95-611 substituted provision

authorizing appropriations of $27,200,000 for fiscal year ending

Sept. 30, 1979, to remain available until expended, for provision

authorizing appropriations of $23,000,000 for fiscal year ending

Sept. 30, 1978, to remain available until Sept. 30, 1979.

1977 - Subsec. (c). Pub. L. 95-199 substituted provisions

authorizing appropriations for fiscal year ending Sept. 30, 1978,

of not to exceed $23,000,000 and authorizing availability of sums

to Sept. 30, 1979, for provisions authorizing appropriations for

the period beginning May 1, 1976, and ending Sept. 30, 1977, of not

to exceed $20,000,000 and authorizing availability of sums to Sept.

30, 1978.

1976 - Subsec. (a). Pub. L. 94-210, Sec. 607(n), inserted

provision authorizing appropriation of sums to discharge the

obligation of the United States under section 743(c)(5) of this

title.

Subsec. (b). Pub. L. 94-210, Sec. 607(m)(1), substituted

"$7,000,000" for "$5,000,000".

Subsec. (c). Pub. L. 94-436 substituted provisions authorizing

appropriations of such sums as are necessary not to exceed

$20,000,000 for the period beginning May 1, 1976, and ending Sept.

30, 1977 to remain available until Sept. 30, 1978 for provisions

authorizing appropriations of such sums as are necessary not to

exceed $40,000,000 to remain available until expended.

Pub. L. 94-210, Sec. 607(m)(2), authorized appropriation of not

to exceed $14,000,000 for fiscal period which includes fiscal

period ending Sept. 30, 1977.

1974 - Subsec. (c). Pub. L. 93-488 substituted "$40,000,000" for

"$26,000,000".

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section

1169 of Pub. L. 97-35, set out as an Effective Date note under

section 1101 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-448 effective Oct. 1, 1980, see section

710(a) of Pub. L. 96-448, set out as a note under section 1170 of

Title 11, Bankruptcy.

EFFECTIVE DATE OF 1979 AMENDMENT

Amendment by Pub. L. 96-73 effective Oct. 1, 1979, see section

501(a) of Pub. L. 96-73.

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-End-

-CITE-

45 USC Sec. 725 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 725. Interim agreements

-STATUTE-

(a) Purposes

Prior to the date upon which rail properties are conveyed to the

Corporation under this chapter, the Secretary, with the approval of

the Association, is authorized to enter into agreements with the

trustees of the railroads in reorganization in the region (or

railroads leased, operated, or controlled by railroads in

reorganization) -

(1) to perform the program maintenance on designated rail

properties of such railroads until the date rail properties are

conveyed under this chapter;

(2) to improve rail properties of such railroads; and

(3) to acquire rail properties for lease or loan to any such

railroads until the date such rail properties are conveyed under

this chapter, and subsequently for conveyance pursuant to the

final system plan, or to acquire interests in such rail

properties owned by or leased to any such railroads or in

purchase money obligations therefor.

(b) Conditions

Agreements pursuant to subsection (a) of this section shall

contain such reasonable terms and conditions as the Secretary may

prescribe. In addition, agreements under paragraphs (1) and (2) of

subsection (a) of this section shall provide that -

(1) to the extent that physical condition is used as a basis

for determining, under section 716(f) or 743(c) of this title,

the value of properties subject to such an agreement and

designated for transfer to the Corporation under the final system

plan, the physical condition of the properties on the effective

date of the agreement shall be used; and

(2) in the event that property subject to the agreement is

sold, leased, or transferred to an entity other than the

Corporation, the trustees or railroad shall pay or assign to the

Secretary that portion of the proceeds of such sale, lease, or

transfer which reflects value attributable to the maintenance and

improvement provided pursuant to the agreement.

(c) Obligations

Notwithstanding section 720(b) of this title, the Association

shall issue obligations under section 720(a) of this title in an

amount sufficient to finance such agreements and shall require the

Corporation to assume any such obligations. The aggregate amount of

obligations issued under this section and outstanding at any one

time shall not exceed $300,000,000. The Association, with the

approval of the Secretary, shall designate in the final system plan

that portion of such obligations issued or to be issued which shall

be refinanced and the terms thereof, and that portion from which

the Corporation shall be released of its obligations.

(d) Conveyance

The Secretary may convey to the Corporation or any subsidiary

thereof, with or without receipt of consideration, any property or

interests acquired by, transferred to, or otherwise held by the

Secretary pursuant to this section or section 723 of this title.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 215, Jan. 2, 1974, 87 Stat. 1004;

Pub. L. 94-5, Sec. 7, Feb. 28, 1975, 89 Stat. 8; Pub. L. 94-210,

title VI, Sec. 607(i), Feb. 5, 1976, 90 Stat. 97.)

-MISC1-

AMENDMENTS

1976 - Subsec. (d). Pub. L. 94-210 inserted "or any subsidiary

thereof" after "Corporation".

1975 - Pub. L. 94-5 expanded provisions covering interim

agreements for the acquisition, maintenance, and improvement of

railroad properties, substituted provisions setting out the

requisite conditions of such agreements for provisions making only

a general requirement that such agreements identify the type and

quality of improvements to be made, raised from $150,000,000 to

$300,000,000 the maximum amount of outstanding obligations, and

substituted provisions directing the Association in the final

system plan to designate that portion of the obligations which

shall be refinanced and that portion from which the Corporation

shall be released of its obligations for provisions prohibiting the

Secretary's entry into agreements unless he issues regulations

setting forth procedures and guidelines for the administration of

this section, substituted provisions authorizing the Secretary to

convey to the Corporation property or interests held by the

Secretary pursuant to this section or section 723 of this title for

provisions relieving the Corporation of the duty of compensating

railroads in reorganization for that portion of transferred

properties attributable to the acquisition, maintenance, or

improvement of such properties under this section.

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 723, 726, 743 of this

title.

-End-

-CITE-

45 USC Sec. 726 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 726. Debentures and series A preferred stock

-STATUTE-

(a) General

The Association is authorized, in accordance with the provisions

of this section, and such rules and regulations as it may

prescribe, to invest from time to time in the securities of the

Corporation by purchasing (1) up to $1,000,000,000 of debentures

issued by the Corporation, and (2) after the acquisition of such

debentures, up to $2,629,000,000 of the series A preferred stock of

the Corporation.

(b) Purposes and procedure for investment

(1) The Association is authorized to purchase debentures and,

thereafter, series A preferred stock of the Corporation at such

times and in such amounts as may be required and requested by the

Corporation in accordance with the terms and conditions governing

such purchases (which shall be prescribed by the Association), to

provide -

(A) for the modernization, rehabilitation and maintenance of

rail properties of the Corporation;

(B) for the acquisition of equipment and other capital needs;

(C) for the refinancing of indebtedness which was incurred by

the Corporation under section 721 of this title or which was

incurred under section 725 of this title and assumed by the

Corporation; or

(D) working capital as contemplated by the final system plan.

(2) Purchases of up to $1,000,000,000 of debentures and,

thereafter, of up to $2,300,000,000 of series A preferred stock

shall be made by the Association as required and requested by the

Corporation, unless the Finance Committee makes an affirmative

finding that -

(A) the Corporation has failed in any material respect to

comply with any covenants or undertakings made to the Association

and such failure remains uncorrected;

(B) the Corporation has failed substantially (as determined by

performance within the margins prescribed by the Board of

Directors) to attain the overall operating (including

rehabilitation) and financial results projected for the

Corporation in the final system plan (including any modifications

of such projected results and of the performance margins

applicable to such projected results which are jointly approved

by the Finance Committee and the Board of Directors and which

would improve the possibility that the Corporation will attain

such projected results and perform within such margins, as

modified); or

(C) it is not reasonably likely, taking into consideration all

relevant factors including the overall operating (including

rehabilitation) and financial results achieved by the

Corporation, that the Corporation will be able to become

financially self-sustaining without requiring Federal financial

assistance substantially in excess of the amounts authorized in

this section.

(3)(A) Amounts transferred to the Association pursuant to section

509(b)(1) (!1) of the Railroad Revitalization and Regulatory Reform

Act of 1976 may be used to purchase series A preferred stock of the

Corporation to provide for the implementation by the Corporation of

a program to reduce the Corporation's work force, if the Finance

Committee finds that the implementation of such program will result

in substantial savings to the United States.

(B) An employee who ceases to be an employee as a result of the

reduction of work force under a program implemented pursuant to

this paragraph shall not, by reason of so ceasing to be an

employee, or by reason of any work or employment entered into after

so ceasing to be an employee, lose such employee's current

connection with the railroad industry for the purposes of the

Railroad Retirement Act of 1974 [45 U.S.C. 231 et seq.].

(4) Purchases of up to $329,000,000 of a series A preferred stock

shall be made by the Association, subject to the availability of

appropriations, as required and requested by the Corporation, if

the Finance Committee makes an affirmative finding that the

Corporation has taken appropriate action to eliminate losses on

light density lines and other lines which are unprofitable. Such

action shall include the imposition of surcharges on such lines,

the abandonment of such lines, and the transfer of such lines.

(5) The authority of the Association to purchase debentures or

series A preferred stock of the Corporation shall terminate October

21, 1986.

(c) Finding, direction, and review by Congress

(1) If the Finance Committee makes an affirmative finding

pursuant to subsection (b)(2) of this section, it may direct the

Association -

(A) not to purchase any debentures or series A preferred stock

of the Corporation after the date of such affirmative finding; or

(B) to purchase debentures or series A preferred stock of the

Corporation, after the date of such affirmative finding, only in

such amounts, at such times, and on such terms and conditions

(notwithstanding subsection (e)(1) of this section) as the

Finance Committee determines to be appropriate to the role of the

Association as an investor in such debentures and series A

preferred stock.

(2) A copy of each affirmative finding, the reasons therefor, and

each direction made by the Finance Committee under paragraph (1) of

this subsection, together with the comments and recommendations

thereon of the Board of Directors of the Association, shall be

transmitted to the Congress by the Association within 10 days after

the date on which the Finance Committee makes such finding and

direction, or if not so transmitted, shall be transmitted by the

Finance Committee. Each such direction so transmitted shall become

finally effective and is required to be implemented by the

Association, unless within the first period of 30 calendar days of

continuous session of Congress after the date of its transmittal to

Congress either House of Congress disapproves such direction

(except that such direction shall become finally effective

immediately upon approval of such direction by both Houses of

Congress) in accordance with the procedures specified in section

688 of title 2. For purposes of this paragraph, continuity of

session of Congress is broken only in the circumstances described

in section 682(5) of title 2. During review by the Association and

Congress, the Association shall take no action inconsistent with

the direction of the Finance Committee pursuant to paragraph (c)(1)

of this section, except to the extent the Association finds

necessary, in its discretion, to assure continuous orderly

operation of the Corporation.

(3) If the Congress, pursuant to paragraph (2) of this

subsection, disapproves a direction submitted to the Association

pursuant to paragraph (1) of this subsection, the Association shall

continue to purchase the debentures or series A preferred stock of

the Corporation as otherwise provided in this subchapter until such

time as a direction is submitted under this section which is not so

disapproved (or affirmatively approved). The powers of the

Association and of the Board of Directors of the Association shall

remain in effect except to the extent modified by any such

direction. If any such direction is disapproved by either House of

Congress, the Finance Committee may, not earlier than 30 days after

the date of such disapproval, make (and the Board of Directors of

the Association shall transmit) any additional affirmative finding

and direction with respect to the same matter, which direction

shall become effective in accordance with paragraph (2) of this

subsection. An affirmative finding and direction under this

subsection, or action by the Association during a review thereof by

the Congress, may not be held unlawful or set aside by any

reviewing court on the ground that such finding and direction or

action were not adequate to meet the requirements of subparagraph

(A), (E), or (F) of section 706(2) of title 5.

(4) Notwithstanding any other provision of this section, or any

terms and conditions governing its purchase of securities of the

Corporation, the Association shall, upon written application by the

Corporation at least 30 days prior to such investment, make an

initial investment in debentures of the Corporation within 60 days

after the date of conveyance of rail properties pursuant to section

743(b)(1) of this title. Such initial investment shall be limited

to such amounts as the Association and Finance Committee, acting

jointly, determine are necessary for the continued and orderly

operations of the Corporation prior to any additional investment.

(5) Not later than 60 days after the date of conveyance pursuant

to section 743(b)(1) of this title, the Association shall select 6

individuals to serve as members of the Board of Directors of the

Corporation, subject to the provisions of section 741(d) of this

title.

(d) Terms and conditions

Notwithstanding any other provision of State law, the debentures

and the series A preferred stock of the Corporation shall have such

terms and conditions, not inconsistent with the final system plan

or this subchapter, as may be prescribed by the Association, except

as follows:

(1) The Corporation shall not be required to issue to the

Association additional shares of series A preferred stock of the

Corporation as a dividend on any such stock.

(2) The dividends payable on series A preferred stock of the

Corporation shall not be cumulative and shall be paid in cash

when and to the extent that there is "cash available for

restricted cash payments", as that term is defined in the final

system plan.

(3) After the Association calls for redemption of the

certificates of value, no shares of series A preferred stock of

the Corporation shall be issued in lieu of interest on the

debentures of the Corporation and, to the extent such interest is

not payable in cash by reason of the absence of sufficient "cash

available for restricted cash payment", the Corporation shall

deliver to the holders of the debentures contingent interest

notes in a face amount equal to such unpaid interest.

(4) If the Board of Directors of the Association and the

Finance Committee, acting jointly, modify the terms or conditions

governing the purchase of debentures or series A preferred stock

of the Corporation pursuant to subsection (e)(1) of this section,

or if the Finance Committee waives compliance with any term,

condition, provision, or covenant of such securities pursuant to

subsection (e)(2) of this section, the Finance Committee may

require the Corporation to issue contingent interest notes in

such amount as, in the determination of the Finance Committee,

will provide protection for the United States, in the event of

bankruptcy, reorganization, or receivership of the Corporation,

equal to the protection the United States would have had in the

absence of such modification or waiver.

(5) The contingent interest notes issued pursuant to this

section shall bear interest compounded annually at the rate of 8

percent per annum and such notes and the accumulated interest

thereon shall be payable only in the event of bankruptcy,

reorganization, or receivership of the Corporation occurring

prior to the repayment and redemption of all outstanding

debentures and accumulated series A preferred stock of the

Corporation. The contingent interest notes and the accumulated

interest thereon shall have the same priority in bankruptcy,

reorganization, or receivership as the debentures of the

Corporation. The other terms and conditions of the contingent

interest notes shall be as set forth in an agreement to be

entered into between the Association and the Corporation prior to

issuance of any debentures.

(e) Modifications, waivers, and conversions

(1) The Board of Directors of the Association and the Finance

Committee, acting jointly, may agree with the Corporation to modify

any of the terms and conditions governing the purchase by the

Association of securities of the Corporation, upon a finding that

such action is necessary or appropriate to achieve the purposes of

this chapter or the goals of the final system plan.

(2) The Finance Committee may, in its discretion and upon a

finding that such action is necessary or appropriate to achieve the

purposes of this chapter or the goals of the final system plan,

waive compliance with any term, condition, provision, or covenant

of the securities of the Corporation held by the Association,

including any provision of such securities with respect to

redemption of principal or issuance price, payment of interest or

dividends, or any term or condition governing the purchase of such

securities.

(3) Notwithstanding any provision of State law, there shall be no

conversion of the debentures of the Corporation into series A

preferred stock of the Corporation, as provided in the terms and

conditions of the debentures and pursuant to the final system plan,

unless the Board of Directors of the Association and the Finance

Committee jointly determine to effect such conversion.

(f) Employee stock ownership plan

(1) The Association shall not invest the final $345,000,000 of

the additional investment in the Corporation authorized by the

Regional Rail Reorganization Act Amendments of 1978 unless and

until (A) the Corporation has in effect an employee stock ownership

plan which satisfies the requirements of paragraphs (2) and (3),

and (B) the requirements of the other paragraphs of this subsection

have been satisfied.

(2) The employee stock ownership plan shall:

(A) provide:

(i) for a transfer to the plan and allocation to the accounts

of plan participants in periodic installments of Series A

preferred stock of the Corporation with a stated redemption

value of at least $345,000,000 or any other securities in an

amount determined by the Association, with the concurrence of

the Finance Committee, as constituting a meaningful interest in

the Corporation, or any combination thereof so determined by

the Association, with the concurrence of the Finance Committee.

The use of Series A preferred stock to fund the Employee Stock

Ownership Plan shall not be interpreted to relieve ConRail of

the responsibility for repaying in full to the United States

Railway Association its indebtedness as represented by all

shares originally issued under Public Law 94-210 and this

chapter;

(ii) for immediate vesting of the rights of participants to

such securities upon allocation, subject to defeasance as a

result of the plan's termination which termination shall occur

in the event that, by the end of the 120th month beginning

after the month in which securities or interests therein are

first allocated to participants' accounts, the Corporation has

not attained for two consecutive quarters positive net income

and a freight labor cost to freight revenue ratio equal to the

average such ratio for all Class I railroads in 1977, as

determined pursuant to procedures adopted by the Corporation

pursuant to regulations promulgated by the Association with the

concurrence of the Finance Committee;

(B) be an employee benefit plan which is designed to invest

primarily in employer securities;

(C) meets such other requirements (similar to requirements

applicable to employee stock ownership plans as defined in

section 4975(e)(7) of title 26) as the Secretary of the Treasury

or his delegate may describe;

(D) have been approved by the Board of Directors of the

Corporation to the extent and in the manner which may be required

by the Corporation's articles of incorporation and bylaws then in

effect; and

(E) have been prepared in consultation with, and been approved

by, the Association and the Finance Committee.

(3) Notwithstanding any other provision of law, if a plan does

not meet the requirements of section 401 of title 26 -

(A) stock transferred under paragraph (2) and allocated to the

account of any participant under paragraph (2) shall not be

considered income of the participant or his beneficiary under

title 26 until such stock or dividends are actually distributed

or made available to the participant or his beneficiary and, at

such time, shall be taxable under section 72 of title 26

(treating the participant or his beneficiary as having a basis of

0 in the stock);

(B) no amount shall be allocated to any participant under the

plan in excess of the amount which might be allocated if the plan

met the requirements of section 401 of title 26; and

(C) the plan must meet the requirements of sections 410 and 415

of title 26.

(4) The Corporation shall adopt such terms and conditions

governing the securities of interests therein to be transferred to

the plan (including limitations on voting rights) as the

Association, with the concurrence of the Finance Committee,

determines are necessary to protect reasonably the interests of the

United States in the litigation pursuant to section 743(c) of this

title and in the event of any action to further reorganize or

restructure the Corporation's assets or capital structure.

(5) The Corporation, the Association, and a representative

appointed by the Chairman of the Railway Labor Executives'

Association as representative of all the classes or crafts of

employees of the Corporation shall engage in negotiations to agree

upon a plan in accordance with the provisions of this subsection.

For purposes of this subsection, the Railway Labor Executives'

Association shall be deemed to represent all of the representatives

of crafts or classes of employees of the Corporation and its

subsidiaries as though that organization held powers of attorney

from each representative of a craft or class for the limited

purposes of negotiating and agreeing upon an employee stock

ownership plan. The parties shall incorporate their agreement into

a written plan instrument specifying the terms and conditions set

forth in this subsection and such other terms and conditions as

they may decide upon, with the concurrence of the Finance

Committee, unless the parties are unable to reach on (!2) an

agreement on the plan following the exertion of every reasonable

effort to do so, in accordance with the Railway Labor Act [45

U.S.C. 151 et seq.], in which event, the Corporation and the

Association, with the concurrence of the Finance Committee, shall

establish a written plan with such terms and conditions as they may

agree upon in accordance with this subsection. The plan shall not

be subject to change under the provisions of section 6 of the

Railway Labor Act [45 U.S.C. 156] until after such time as

securities have been distributed from the plan to the participants

in the plan or their beneficiaries pursuant to the terms of the

plan. Within one year after November 1, 1978, the Corporation shall

transmit a draft of such plan to the Congress and shall report on

its progress in establishing and administering the plan. The report

shall include recommendations of contractual and statutory

provisions necessary to reasonably (A) exempt any Trustee of the

plan, the Corporation, the Association, any member of the Finance

Committee, and any other person from any fiduciary duty,

responsibility or liability for the acquisition of, investment in,

or retention of any security or interest therein of the Corporation

or for any other transaction contemplated by this subsection and

(B) provide for the United States to indemnify, defend, and hold

harmless such persons against any and all liabilities, claims,

actions, judgments, amounts paid in settlement, and costs and

expenses actually incurred in connection with any matter so

exempted in which it is determined that such persons were acting in

good faith and in a manner they believed to not be opposed to the

best interests of the plan.

(6) Within fourteen months of November 1, 1978, the Association

shall report to the Congress on the draft plan and on any legal

obstacle to the ability of the Corporation to effectuate and

implement an employee stock ownership plan of the nature

contemplated by this subsection, including specific recommendations

on amendments to this subsection and other relevant laws which

would harmonize the requirements of this subsection with those

other laws. The Department of Transportation and the Department of

the Treasury, as each finds appropriate, shall provide separate

comments to the Association for inclusion with such report.

(7) For the purposes of this subsection, the officers of each

duly authorized representative of the crafts or classes of the

employees of the Corporation who have been given leaves of absence

by the Corporation to serve as such officers, are to be eligible to

participate in such plan on the same basis as are employees whose

employment is governed by a collective bargaining agreement with

the Corporation.

(8)(A) Except as provided in subparagraph (B) of this paragraph,

no person described in subparagraph (C) of this paragraph shall

have or be subject to any fiduciary responsibility, obligation, or

duty, nor shall any such person be subject to civil liability,

under any Federal or State law, as a fiduciary or otherwise -

(i) in connection with the employee stock ownership plan and

related trust established by the Corporation pursuant to the

requirements of this subsection or with ConRail Equity

Corporation (I) on account of any reorganization or restructuring

of the Corporation, its successors or assigns, or their assets or

capital structure, or (II) on account of any action taken or not

taken by the Corporation which may affect its ability to attain

the performance levels established in connection with the plan

pursuant to paragraph (2)(A)(ii) of this subsection;

(ii) for or in connection with the establishment, continuation

or implementation of the plan and related trust or of ConRail

Equity Corporation or the acquisition of, investment in or

retention of any security of the Corporation or ConRail Equity

Corporation, or of any of their successors and assigns, by the

plan or ConRail Equity Corporation, or the disposition of any

such security to the extent that such disposition is made in

connection with a reorganization or restructuring of the

Corporation, its successors and assigns, or their assets or

capital structure, as directed or approved by or on behalf of the

Association or the United States, or the acquisition or retention

of any cash, security or other property received in connection

with any such reorganization or restructuring; or

(iii) for or in connection with any other action taken or not

taken pursuant to any term or condition of the plan or related

trust agreement or of the articles of incorporation or bylaws of

ConRail Equity Corporation.

Any directions described in clauses (i)(I), (ii), or (iii) shall be

taken at the direction, or with the consent, of the Association or

of the Secretary or his designate.

(B) Subparagraph (A) of this paragraph shall not be interpreted

to relieve any person from any fiduciary or other responsibility,

obligation or duty under any Federal or State law to take or not to

take actions with respect to the plan in connection with (i)

receiving contributions, (ii) exercising custodial

responsibilities, (iii) determining eligibility to participate in

the plan, (iv) calculating, determining and paying benefits, (v)

processing and deciding claims, (vi) preparing and distributing

plan information, benefit statements, returns and reports, (vii)

maintaining plan records, (viii) appointing plan fiduciaries and

other persons to advise or assist in plan administration and (ix)

other than as provided in subparagraph (A), acquiring, holding or

disposing of plan assets.

(C) For purposes of subparagraph (A) of this paragraph, the term

"person" includes each of the following:

(i) the trustee or trustees of the plan, the Corporation and

its subsidiaries, ConRail Equity Corporation, the Association,

and any of their successors and assigns;

(ii) each director, officer, employee and agent of the

Corporation of (!3) any of its subsidiaries, of ConRail Equity

Corporation, of the plan, of the Association or of any of their

successors and assigns; and

(iii) each member of the Finance Committee and any of their

employees and agents.

(D) Neither this paragraph nor paragraph (9) of this subsection

shall be construed to grant immunity from any criminal law of the

United States or of any State or the District of Columbia.

(9) The United States shall indemnify, defend, and hold harmless

the persons described in paragraph (8)(C) of this subsection from

and against any and all liabilities, claims, actions, judgments,

amounts paid in settlement, and costs and expenses (including

reasonable fees of accountants, experts, and attorneys) actually

incurred in connection with the establishment, implementation, or

operation of the plan or ConRail Equity Corporation or with any

transaction which is required by or is appropriate to effectuate

fully the provisions of this subsection, except as may arise in

connection with the execution of a responsibility, obligation, or

duty excluded from paragraph (8)(A) by paragraph (8)(B), if it is

determined that such persons were acting in good faith. The

indemnity provided in this paragraph shall be a full faith and

credit obligation of the United States.

(10) All securities of the Corporation, all securities of any

subsidiary of the Corporation and of ConRail Equity Corporation,

and all interests in the employee stock ownership plan which are

issued or transferred in connection with the employee stock

ownership plan established by the Corporation pursuant to the

requirements of this subsection shall be deemed for all purposes to

have been issued subject to and authorized and approved pursuant to

section 11301(b) (!4) of title 49 and any corresponding provision

of any successor statute.

(g) Authorization of appropriations; reappropriation of funds

(1) There is authorized to be appropriated to the Association

$3,629,000,000 to be used for the purchase of securities of the

Corporation in accordance with this section. All sums received by

the Association on account of the holding or disposition of any

such securities shall be deposited in the general fund of the

Treasury.

(2) To the extent provided in appropriation Acts, any funds

appropriated under the authority of paragraph (1) of this

subsection prior to January 14, 1983, may be reappropriated to the

Secretary, to facilitate the transfer of rail commuter services

from the Corporation to other operators, for distribution under the

statutory provisions of section 1139(b) of the Northeast Rail

Service Act of 1981.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 216, as added Pub. L. 94-210, title

VI, Sec. 605, Feb. 5, 1976, 90 Stat. 89; amended Pub. L. 95-565,

Secs. 2, 3, Nov. 1, 1978, 92 Stat. 2397; Pub. L. 96-254, title I,

Sec. 118, May 30, 1980, 94 Stat. 406; Pub. L. 96-448, title IV,

Sec. 405(b)(2), title VII, Sec. 703(e), (f)(1), (2), Oct. 14, 1980,

94 Stat. 1946, 1964, 1965; Pub. L. 97-468, title V, Sec. 504(b),

Jan. 14, 1983, 96 Stat. 2552; Pub. L. 99-509, title IV, Sec.

4011(d), Oct. 21, 1986, 100 Stat. 1896; Pub. L. 99-514, Sec. 2,

Oct. 22, 1986, 100 Stat. 2095.)

-REFTEXT-

REFERENCES IN TEXT

Section 509 of the Railroad Revitalization and Regulatory Reform

Act of 1976, referred to in subsec. (b)(3)(A), was classified to

section 829 of this title prior to repeal by Pub. L. 105-178, title

VII, Sec. 7203(a)(2), June 9, 1998, 112 Stat. 477.

The Railroad Retirement Act of 1974, referred to in subsec.

(b)(3)(B), is act Aug. 29, 1935, ch. 812, as amended generally by

Pub. L. 93-445, title I, Sec. 101, Oct. 16, 1974, 88 Stat. 1305,

which is classified generally to subchapter IV (Sec. 231 et seq.)

of chapter 9 of this title. For further details and complete

classification of this Act to the Code, see Codification note set

out preceding section 231 of this title, section 231t of this

title, and Tables.

The Regional Rail Reorganization Act Amendments of 1978, referred

to in subsec. (f)(1), probably means Pub. L. 95-565, Nov. 1, 1978,

92 Stat. 2397, as amended, known as the United States Railway

Association Amendments Act of 1978, which amended sections 726,

747, and 825 of this title and section 975 of Title 43, Public

Lands, and enacted a provision set out as a note under section 975

of Title 43. For complete classification of this Act to the Code,

see Short Title of 1978 Amendment note set out under section 701 of

this title and Tables.

Public Law 94-210, referred to in subsec. (f)(2)(A)(i), is Pub.

L. 94-210, Feb. 5, 1976, 90 Stat. 31, as amended, known as the

Railroad Revitalization and Regulatory Reform Act of 1976. For

complete classification of this Act to the Code, see Short Title

note set out under section 801 of this title and Tables.

The Railway Labor Act, referred to in subsec. (f)(5), is act May

20, 1926, ch. 347, 44 Stat. 577, as amended, which is classified

principally to chapter 8 (Sec. 151 et seq.) of this title. For

complete classification of this Act to the Code, see section 151 of

this title and Tables.

Section 11301(b) of title 49, referred to in subsec. (f)(10), was

omitted and a new section 11301 enacted in the general amendment of

subtitle IV of Title 49, Transportation, by Pub. L. 104-88, title

I, Sec. 102(a), Dec. 29, 1995, 109 Stat. 804, 837. The new section

11301 does not relate to issuance of securities.

Section 1139(b) of the Northeast Rail Service Act of 1981,

referred to in subsec. (g)(2), is section 1139(b) of Pub. L. 97-35,

title XI, Aug. 13, 1981, 95 Stat. 652, which is set out as a note

under section 744a of this title.

-COD-

CODIFICATION

In subsec. (c)(2), "section 688 of title 2" and "section 682(5)

of title 2" substituted for "section 1017 of the Congressional

Budget and Impoundment Control Act of 1974 (31 U.S.C. 1407)" and

"section 1011(5) of that Act (31 U.S.C. 1401(5))", respectively, to

reflect the transfer of sections 1407 and 1401 of former Title 31,

Money and Finance, to sections 688 and 682 of Title 2, The

Congress.

-MISC1-

AMENDMENTS

1986 - Subsec. (b)(5). Pub. L. 99-509 added par. (5).

Subsec. (f)(2)(C), (3). Pub. L. 99-514 substituted "Internal

Revenue Code of 1986" for "Internal Revenue Code of 1954" wherever

appearing, which for purposes of codification was translated as

"title 26" thus requiring no change in text.

1983 - Subsec. (g). Pub. L. 97-468 designated existing provisions

as par. (1) and added par. (2).

1980 - Subsec. (a). Pub. L. 96-448, Sec. 703(f)(1), substituted

"$2,629,000,000" for "$2,300,000,000".

Subsec. (b)(3). Pub. L. 96-448, Sec. 405(b)(2), added par. (3).

Subsec. (b)(4). Pub. L. 96-448, Sec. 703(e), added par. (4).

Subsec. (f)(5). Pub. L. 96-254, Sec. 118(a), (b), inserted

provisions that the plan not be subject to change under the

provisions of section 6 of the Railway Labor Act until after such

time as securities have been distributed from the plan to the

participants in the plan or their beneficiaries pursuant to the

terms of the plan and that, for purposes of this subsection, the

Railway Labor Executives' Association shall be deemed to represent

all of the representatives of crafts or classes of employees of the

Corporation and its subsidiaries as though that organization held

powers of attorney from each representative of a craft or class for

the limited purposes of negotiating and agreeing upon an employee

stock ownership plan.

Subsec. (f)(8) to (10). Pub. L. 96-254, Sec. 118(c), added pars.

(8) to (10).

Subsec. (g). Pub. L. 96-448, Sec. 703(f)(2), substituted

"$3,629,000,000" for "$3,300,000,000".

1978 - Subsec. (a). Pub. L. 95-565, Sec. 2(a), substituted

"$2,300,000,000" for "$1,100,000,000".

Subsec. (b)(2). Pub. L. 95-565, Sec. 2(b), substituted

"$2,300,000,000" for "$1,100,000,000".

Subsecs. (f), (g). Pub. L. 95-565, Secs. 2(c), 3, added subsec.

(f), redesignated former subsec. (f) as (g), and substituted

"$3,300,000,000" for "$2,100,000,000".

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-448 effective Oct. 1, 1980, see section

710(a) of Pub. L. 96-448, set out as a note under section 1170 of

Title 11, Bankruptcy.

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 712, 721, 727, 741, 1342

of this title; title 49 section 306.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) So in original.

(!3) So in original. Probably should be "or".

(!4) See References in Text note below.

-End-

-CITE-

45 USC Sec. 727 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 727. Additional purchases of Series A preferred stock

-STATUTE-

(a) Federal investment

In addition to the authority provided under section 726 of this

title, the Association shall purchase shares of Series A preferred

stock and accounts receivable of the Corporation after August 13,

1981, in amounts not to exceed a total of $137,000,000.

(b) Accounts receivable

(1) In any further purchase under this section or section 726 of

this title the Association shall purchase accounts receivable of

the Corporation attributable to the dispute over the right-of-way

related costs described in section 1111 (!1) of this title until

the Commission resolves such dispute under such section, and

accounts receivable of the Corporation attributable to delays in

reimbursement from commuter authorities.

(2) From funds provided under this section or section 726 of this

title, the Association shall purchase Series A preferred stock of

the Corporation, to the extent of losses on commuter service, in an

amount not to exceed $15,000,000.

(c) States and localities

The Corporation shall be exempt from liability for any State tax,

except for any tax imposed by any political subdivision of a State

applicable to any taxable period commencing before January 1, 1987.

(d) Debentures

The Association shall return debentures to the Corporation in an

amount equal to the value of the properties conveyed by the

Corporation to Amtrak Commuter and any commuter authority.

(e) Rights retained

The Corporation shall retain the right to collect any accounts

receivable attributable to delays in reimbursement from commuter

authorities that are purchased by the Association under this

section. No agency or instrumentality of the United States shall be

required to collect such accounts.

(f) Authorization of appropriations

(1) There is authorized to be appropriated not to exceed

$262,000,000 -

(A) of which not to exceed $137,000,000 shall be appropriated

to the Association for purposes of purchasing securities and

accounts receivable of the Corporation under this section, such

sums to remain available until the Secretary transfers the

Corporation under subchapter IV (!1) of this chapter;

(B) of which not to exceed $75,000,000 shall be appropriated to

the Secretary, to facilitate the transfer of rail commuter

services from the Corporation to other operators, for

distribution under the statutory provisions of section 1139(b) of

the Northeast Rail Service Act of 1981;

(C) of which not to exceed $35,000,000 shall be appropriated to

the Secretary to be allocated for employee protection under

section 1005 of this title; and

(D) of which not to exceed $15,000,000 shall be appropriated to

the Secretary to facilitate the transfer of rail commuter

services from railroads that entered reorganization after

calendar year 1974 to any commuter authority that was providing

commuter service, operated by a railroad that entered

reorganization after calendar year 1974, as of January 1, 1979.

(2) All sums received on account of the holding or disposition of

any securities or accounts receivable referred to in paragraph

(1)(A) of this subsection shall be deposited in the general fund of

the Treasury.

(3) The amount authorized to be appropriated under paragraph

(1)(B) of this subsection shall be reduced, in an amount equal to

any amounts reappropriated under the authority of section 726(g)(2)

of this title, upon the date of enactment of any Act which

reappropriates such amounts.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 217, as added Pub. L. 97-35, title

XI, Sec. 1140(a), Aug. 13, 1981, 95 Stat. 653; amended Pub. L.

97-468, title V, Sec. 504(c), Jan. 14, 1983, 96 Stat. 2552; Pub. L.

99-509, title IV, Sec. 4033(b)(2), (3), Oct. 21, 1986, 100 Stat.

1908.)

-REFTEXT-

REFERENCES IN TEXT

Section 1111 of this title, referred to in subsec. (b)(1), was

repealed by Pub. L. 105-134, title IV, Sec. 408, Dec. 2, 1997, 111

Stat. 2586.

Subchapter IV of this chapter, referred to in subsec. (f)(1)(A),

was repealed by Pub. L. 99-509, title IV, Sec. 4033(a)(1), Oct. 21,

1986, 100 Stat. 1908.

Section 1139(b) of the Northeast Rail Service Act of 1981,

referred to in subsec. (f)(1)(B), is section 1139(b) of Pub. L.

97-35, title XI, Aug. 13, 1981, 95 Stat. 652, which is set out as a

note under section 744a of this title.

-MISC1-

AMENDMENTS

1986 - Subsec. (c). Pub. L. 99-509, Sec. 4033(b)(2), substituted

"applicable to any taxable period commencing before January 1,

1987" for ", until the property of the Corporation is transferred

by the Secretary under subchapter IV of this chapter".

Subsec. (e). Pub. L. 99-509, Sec. 4033(b)(3), struck out "and

shall collect" after "right to collect".

1983 - Subsec. (a). Pub. L. 97-468, Sec. 504(c)(1), substituted

"$137,000,000" for "$262,000,000".

Subsec. (f). Pub. L. 97-468, Sec. 504(c)(2), designated existing

provisions as pars. (1)(A) and (2), in (1)(A) as so designated,

substituted $137,000,000 for $262,000,000 as limit of

appropriations for purchase of securities and accounts receivable,

and added pars. (1)(B) to (D) and (3).

EFFECTIVE DATE

Section effective Aug. 13, 1981, see section 1169 of Pub. L.

97-35, set out as a note under section 1101 of this title.

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 712, 741, 1005 of this

title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

45 USC Sec. 728 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 728. Reports to Congress

-STATUTE-

(a) Progress and evaluation

(1) The Association shall prepare and submit to Congress periodic

reports on the progress of the Secretary in carrying out the

provisions of subchapters II, III, and IV (!1) of this chapter.

(2) Reports submitted under paragraph (1) of this subsection

shall also include an evaluation of the performance of the

Corporation in order to keep the Congress informed as to matters

which may affect the quality of rail service in the Northeast and

which may affect the security of Federal funds invested in the

Corporation.

(b) Transfer agreements

(1) The Association shall prepare and submit to Congress a final

report on the transfer agreements which the Secretary is required

to transmit to Congress under section 767 (!1) of this title. Such

report shall be submitted on the same date as the Secretary's

transmittal of such agreements to Congress.

(2) The report submitted under paragraph (1) of this subsection

shall include an evaluation of the effect of the transfer

agreements on rail service in the Northeast, railroad employees,

the economy of the Region, other railroads in the Northeast and

elsewhere, and any other matter which the Association considers

appropriate. Such report shall also include recommendations with

respect to approval, disapproval, or modification of the transfer

agreements.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 218, as added Pub. L. 97-35, title

XI, Sec. 1150(a), Aug. 13, 1981, 95 Stat. 675.)

-REFTEXT-

REFERENCES IN TEXT

Subchapter IV of this chapter, including section 767 of this

title, referred to in subsecs. (a)(1) and (b)(1), was repealed by

Pub. L. 99-509, title IV, Sec. 4033(a)(1), Oct. 21, 1986, 100 Stat.

1908.

-MISC1-

EFFECTIVE DATE

Section effective Aug. 13, 1981, see section 1169 of Pub. L.

97-35, set out as a note under section 1101 of this title.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions of law

requiring submittal to Congress of any annual, semiannual, or other

regular periodic report listed in House Document No. 103-7 (in

which a report required under subsec. (a) of this section is listed

as the 9th item on page 195), see section 3003 of Pub. L. 104-66,

as amended, set out as a note under section 1113 of Title 31, Money

and Finance.

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

45 USC Sec. 729 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER II - UNITED STATES RAILWAY ASSOCIATION

-HEAD-

Sec. 729. Advisory Board

-STATUTE-

Members of the Board of Directors of the Association serving on

the day before August 13, 1981, shall serve as an Advisory Board to

the Association. A member of the Advisory Board who is not

otherwise an employee of the Federal Government shall receive

reimbursement for travel, subsistence, and other necessary expenses

incurred in the performance of such duties. The Chairman of the

Association shall serve as Chairman of the Advisory Board. Any

vacancy on the Advisory Board shall be filled by the Association

with a representative from the group which had a representative in

the vacant position.

-SOURCE-

(Pub. L. 93-236, title II, Sec. 219, as added Pub. L. 97-35, title

XI, Sec. 1150(a), Aug. 13, 1981, 95 Stat. 675.)

-MISC1-

EFFECTIVE DATE

Section effective Aug. 13, 1981, see section 1169 of Pub. L.

97-35, set out as a note under section 1101 of this title.

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

TERMINATION OF ADVISORY BOARDS

Advisory boards established after Jan. 5, 1973, to terminate not

later than the expiration of the 2-year period beginning on the

date of their establishment, unless, in the case of a board

established by the President or an officer of the Federal

Government, such board is renewed by appropriate action prior to

the expiration of such 2-year period, or in the case of a board

established by the Congress, its duration is otherwise provided for

by law. See sections 3(2) and 14 of Pub. L. 92-463, Oct. 6, 1972,

86 Stat. 770, 776, set out in the Appendix to Title 5, Government

Organization and Employees.

-End-

-CITE-

45 USC SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-HEAD-

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 728, 1104 of this

title.

-End-

-CITE-

45 USC Sec. 741 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-HEAD-

Sec. 741. Formation and structure

-STATUTE-

(a) Establishment

There shall be established within 300 days after January 2, 1974,

in accordance with the provisions of this section, a corporation to

be known as the Consolidated Rail Corporation or such other

corporate name as may be duly adopted by the Corporation.

(b) Status

The Corporation shall be a for-profit corporation established

under the laws of a State and shall not be an agency or

instrumentality of the Federal Government. The Corporation shall be

deemed a rail carrier subject to part A of subtitle IV of title 49,

shall be subject to the provisions of this Act and, to the extent

not inconsistent with such Act and subtitle IV of title 49, shall

be subject to applicable State law. The principal office of the

Corporation or of its principal railroad operating subsidiary shall

be located in Philadelphia in the Commonwealth of Pennsylvania.

(c) Incorporators

(1) The members of the executive committee of the Association

shall be the incorporators of the Corporation and shall take

whatever steps are necessary to establish the Corporation,

including the filing of articles of incorporation.

(2) Notwithstanding any provision of State law, after February 5,

1976, the members of the executive committee of the Association

(including duly authorized representatives of members who are

authorized by this chapter to be represented) and the chief

executive officer and chief operating officer of the Corporation

shall adopt the bylaws of the Corporation and serve as the Board of

Directors of the Corporation until all members of the Board of

Directors of the Corporation have been selected in accordance with

subsection (d) of this section. The chief executive officer shall

serve as chairman of such Board until a chairman thereof is

selected pursuant to subsection (d) of this section, after which

time such chairman shall serve at the pleasure of such Board.

(d) Board of Directors

(1) Notwithstanding any provision of State law, the articles of

incorporation and bylaws of the Corporation shall provide that the

Board of Directors of the Corporation shall consist of 13 members

selected in accordance with the articles and bylaws of the

Corporation, as follows:

(A) six individuals selected by the holders of the

Corporation's debentures and series A preferred stock voting as

one class, with every $100 principal amount of debentures, and

every $100 liquidation amount of series A preferred stock each

receiving one vote for directors;

(B) three individuals selected by the holders of the

Corporation's series B preferred stock; and

(C) two individuals selected by the holders of the

Corporation's common stock.

(2) The chief executive officer and the chief operating officer

of the Corporation shall also serve on the Board, but the chief

executive officer and chief operating officer of the Corporation

shall not be entitled to vote on the election or removal of either.

In the event a vacancy occurs on the Board of Directors due to

death, disability or resignation of a director, such vacancy shall

be filled only by a vote of the holders of the class of securities

that initially elected such director.

(e) Initial capitalization

(1) The Corporation is authorized to issue debentures, series A

preferred stock, series B preferred stock, common stock, contingent

interest notes, and other securities.

(2) Debentures and series A preferred stock shall be issued

initially to the Association. Series B preferred stock and common

stock shall be issued initially to the estates of railroads in

reorganization in the region, to railroads leased, operated, and

controlled by railroads in reorganization in the region, and to

other persons leased, operated or controlled by a railroad in

reorganization who are transferors of rail properties in exchange

for rail properties transferred to the Corporation pursuant to the

final system plan. Notwithstanding any other provisions of State or

Federal law, the series B preferred stock and common stock shall

have terms and conditions not inconsistent with the final system

plan. As a condition of its investment in the Corporation, the

Association may require that the Corporation adopt limitations

consistent with the final system plan on the circumstances under

which dividends on the series B preferred stock and common stock

are payable so long as any of the debentures or series A preferred

stock are outstanding. Notwithstanding anything to the contrary in

the final system plan, the initial authorized number of shares of

series B preferred stock may be 35,000,000, and the Corporation may

issue initially for the purpose of the deposit required under

section 743(a)(1) of this title such numbers of shares of series B

preferred and common stock as the Association shall certify to the

Special Court pursuant to section 719(c)(1)(3) (!1) of this title,

including any modifications in such numbers of shares as may be

ordered by the Special Court for the purpose of, and in connection

with, such deposit and certification.

(f) Officers

The officers of the Corporation shall include a chief executive

officer and a chief operating officer, who shall be appointed by

the Board of Directors and who shall serve at the pleasure of the

Board; and such other officers as shall be provided for in the

bylaws of the Corporation.

(g) Voting trustees

For and during the period between the deposit of securities of

the Corporation with the special court, in accordance with section

743(a) of this title, and the distribution of such securities, in

accordance with section 743(c) of this title, the special court

shall, within 30 days after the date of conveyance pursuant to

section 743(b)(1) of this title, appoint one or more voting

trustees for each class of securities which is so deposited. Such

voting trustees shall, on behalf of the distributees, exercise the

rights of the holders of such securities as their interests may

appear. Within 30 days after such appointment, such voting trustees

shall select members of the Board of Directors of the Corporation

on behalf of the holders of the class of securities whose rights

they exercise pursuant to this subsection.

(h) Annual report

The Corporation shall transmit to the Congress and the President,

not later than 90 days after the end of each fiscal year, a

comprehensive and detailed report on all activities and

accomplishments of the Corporation during the preceding fiscal

year.

(i) Liability of directors

No director of the Corporation shall be liable, for money damages

or otherwise, to any party by reason of the fact that such person

is or was a director, if, with respect to the subject matter of the

action, suit, or proceeding, such person was fulfilling a duty

which he in good faith reasonably believed to be required by law or

vested in him in his capacity as a director of the Association or

as an officer of the United States. The United States shall

indemnify such person against all judgments, amounts paid in

settlement, and costs and expenses (including fees of accountants,

experts, and attorneys), actually and reasonably incurred in

connection with any such action, suit, or proceeding in which such

person is determined to have met such standard of conduct. This

subsection shall not be construed to grant any immunity from any

criminal law of the United States.

(j) Signal systems

If, within two years after August 13, 1981, the Corporation

applies for the permission of the Secretary to substitute manual

block signal systems for automatic block signal systems on lines on

which less than 20,000,000 gross tons of freight are carried

annually, the Secretary shall approve or disapprove such

application within 90 days of its submission.

(k) Governing provisions after sale

The provisions of this chapter shall not apply to the Corporation

and to activities and other actions and responsibilities of the

Corporation and its directors and employees after the sale date,

other than with regard to -

(1) section 702 of this title;

(2) section 711(d) of this title;

(3) section 713 of this title, but only with respect to

information relating to proceedings before the special court

established under section 719(b) of this title;

(4) section 719 of this title, other than subsection (f)

thereof;

(5) section 726(f)(8) of this title, but only as such authority

applies to activities related to the ESOP and related trust

before the sale date;

(6) section 726(f)(9) of this title, but only as such

indemnification applies to activities relating to the ESOP and

related trust before the sale date;

(7) section 726(f)(10) of this title with respect to all

securities of the Corporation issued or transferred in connection

with the public offering under the Conrail Privatization Act [45

U.S.C. 1301 et seq.] and all securities of ConRail Equity

Corporation and all interests in the ESOP;

(8) section 727(c) and (e) of this title;

(9) subsection (b) of this section, but only with respect to

matters covered by the last sentence of such subsection;

(10) subsection (i) of this section, but only as such authority

applies to service as a director of the Corporation before the

sale of the interest of the United States in the common stock of

the Corporation;

(11) section 742 of this title, but only to the extent of (A)

the creation and maintenance of the power and authority of the

Corporation to operate rail service and to rehabilitate, improve,

and modernize rail properties, and (B) the creation and

maintenance of the powers of the Corporation as a railroad in any

State in which it operates as of the sale date;

(12) section 743(b)(1) and (2) of this title, but only to the

extent of establishing the legal effect of the conveyance of

property ordered and of the deeds and other instruments executed,

acknowledged, delivered, or recorded in connection therewith and

the quality of title acquired in such property;

(13) section 743(b)(3)(B) of this title with respect to the

effect of an assignment, conveyance, or assumption as set forth

in the last sentence of such subparagraph (B);

(14) section 743(b)(5) of this title;

(15) section 743(b)(6) of this title, but only with respect to

establishing and maintaining the rights of the Corporation with

respect to, limiting its obligations with respect to, and

establishing the status of, the employee pension and welfare

benefit plans transferred to the Corporation thereunder and with

respect to the exclusivity of the jurisdiction of the special

court and the limitation of jurisdiction of other courts;

(16) section 743(e) of this title;

(17) section 744 of this title, but only with respect to the

finality of abandonments completed before the sale date pursuant

to the authority thereof;

(18) section 745 of this title, but only as to the effect, and

continuing administration, of supplemental transactions

consummated before the sale date;

(19) section 748 of this title, but only (A) as to the finality

of abandonments completed before the sale date and (B) as to

abandonments of lines where a notice or notices of insufficient

revenues with respect to such lines have been filed before

November 1, 1985;

(20) section 791(a)(2) of this title, but only with respect to

activities before the sale date;

(21) section 791(b)(2) and (b)(3) of this title, but only with

respect to issuance of and transactions in any security of the

Corporation before the sale date;

(22) section 797a(e) of this title;

(23) section 797b of this title;

(24) section 797c of this title;

(25) sections 797e(a), 797f, and 797g(a) of this title, but

only insofar as they establish part of the prevailing status quo

for the Corporation's employees' rates of pay, rules, and working

conditions, such provisions to continue to apply unless changed

pursuant to section 156 of this title;

(26) section 797h of this title;

(27) section 797i(b)(1) of this title;

(28) section 797j of this title; and

(29) section 797m of this title, but only with regard to

disputes or controversies specified in such section that arose

before the sale date.

-SOURCE-

(Pub. L. 93-236, title III, Sec. 301, Jan. 2, 1974, 87 Stat. 1004;

Pub. L. 94-210, title VI, Secs. 608, 611, 612(j)(1), (3), (m), Feb.

5, 1976, 90 Stat. 99, 105, 109, 110; Pub. L. 94-216, Secs. 1, 3,

Feb. 17, 1976, 90 Stat. 191; Pub. L. 94-248, Sec. 4, Mar. 25, 1976,

90 Stat. 286; Pub. L. 97-35, title XI, Sec. 1141, Aug. 13, 1981, 95

Stat. 653; Pub. L. 99-509, title IV, Sec. 4032, Oct. 21, 1986, 100

Stat. 1906; Pub. L. 104-88, title III, Sec. 327(2), Dec. 29, 1995,

109 Stat. 951.)

-REFTEXT-

REFERENCES IN TEXT

This Act, referred to in subsec. (b), means the Regional Rail

Reorganization Act of 1973, Pub. L. 93-236, Jan. 2, 1974, 87 Stat.

985, as amended, which is classified principally to this chapter

(Sec. 701 et seq.). For complete classification of this Act to the

Code, see Short Title note set out under section 701 of this title

and Tables.

The Conrail Privatization Act, referred to in subsec. (k)(7), is

subtitle A (Secs. 4001-4052) of title IV of Pub. L. 99-509, Oct.

21, 1986, 100 Stat. 1892, which is classified principally to

chapter 22 (Sec. 1301 et seq.) of this title. For complete

classification of this Act to the Code, see Short Title note set

out under section 1301 of this title and Tables.

-COD-

CODIFICATION

In subsec. (b), "such Act and subtitle IV of title 49"

substituted for "such Acts", on authority of Pub. L. 95-473, Sec.

3(b), Oct. 17, 1978, 92 Stat. 1466, the first section of which

enacted subtitle IV (Sec. 10101 et seq.) of Title 49,

Transportation.

The last sentence of subsec. (f) of this section as originally

enacted, which amended section 856 of former Title 31, Money and

Finance, was repealed by Pub. L. 97-258, Sec. 5(b), Sept. 13, 1982,

96 Stat. 1068, the first section of which enacted Title 31.

-MISC1-

AMENDMENTS

1995 - Subsec. (b). Pub. L. 104-88, Sec. 327(2), substituted

"rail carrier subject to part A of subtitle IV of title 49" for

"common carrier by railroad under section 1(3) of the Interstate

Commerce Act (49 U.S.C. 1(3))".

1986 - Subsec. (k). Pub. L. 99-509 added subsec. (k).

1981 - Subsec. (d)(2). Pub. L. 97-35, Sec. 1141(a), struck out

provisions respecting resignations.

Subsec. (e)(1). Pub. L. 97-35, Sec. 1141(b), substituted "The"

for "In order to carry out the final system plan, the".

Subsec. (j). Pub. L. 97-35, Sec. 1141(c), substituted provisions

relating to signal systems for provisions relating to corporate

simplification.

1976 - Subsec. (a). Pub. L. 94-210, Sec. 612(j)(1), inserted "or

such other corporate name as may be duly adopted by the

Corporation" after "Corporation".

Subsec. (b). Pub. L. 94-210, Sec. 612(j)(3), inserted "or of its

principal railroad operating subsidiary" after "of the

Corporation".

Subsec. (c). Pub. L. 94-210, Sec. 611(a), designated existing

provisions as par. (1), struck out provision relating to service of

the incorporators as the Board of Directors, and added par. (2).

Subsec. (d). Pub. L. 94-210, Sec. 611(b), designated existing

provisions as par. (1), inserted provision relating to

applicability of State law, decreased membership from 15 to 13, and

revised criteria for selection to membership, and added par. (2).

Subsec. (e). Pub. L. 94-210, Sec. 608, designated existing

provisions as par. (1), substituted provisions authorizing issuance

of debentures, series A preferred stock, series B preferred stock,

common stock, contingent interest notes, and other securities, for

provisions relating to issuance of stock and other securities, and

added par. (2).

Subsec. (e)(2). Pub. L. 94-248 inserted provisions relating to

initial authorized number of shares of series B preferred stock and

provisions setting such number at 35,000,000.

Subsec. (f). Pub. L. 94-210, Sec. 611(c), added subsec. (f).

Former subsec. (f), which related to a Federal Government audit of

the Corporation, was struck out.

Subsec. (g). Pub. L. 94-210, Sec. 611(c), added subsec. (g).

Former subsec. (g) redesignated (h) "Annual report".

Subsec. (h). Pub. L. 94-216, Sec. 1, redesignated subsec. (h)

"Liability of directors" as (i).

Pub. L. 94-210, Secs. 611(c), 612(m), redesignated former subsec.

(g) as (h) "Annual report" and added subsec. (h) "Liability of

directors".

Subsec. (i). Pub. L. 94-216, Secs. 1, 3, redesignated former

subsec. (h) "Liability of directors" as (i) and substituted "a

director of the Association" for "a director of the Corporation".

Former subsec. (i) redesignated (j).

Pub. L. 94-210, Sec. 612(m), added subsec. (i) "Corporate

simplification".

Subsec. (j). Pub. L. 94-216, Sec. 1, redesignated former subsec.

(i) "Corporate simplification" as (j).

EFFECTIVE DATE OF 1995 AMENDMENT

Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2

of Pub. L. 104-88, set out as an Effective Date note under section

701 of Title 49, Transportation.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section

1169 of Pub. L. 97-35, set out as an Effective Date note under

section 1101 of this title.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions in subsec.

(h) of this section relating to the requirement that the

Corporation transmit an annual report to Congress, see section 3003

of Pub. L. 104-66, as amended, set out as a note under section 1113

of Title 31, Money and Finance, and the 7th item on page 199 of

House Document No. 103-7.

-TRANS-

ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGANIZATION ACT OF

1973, AND TRANSFER OF FUNCTIONS

Special court abolished and all jurisdiction and functions

transferred to United States District Court for District of

Columbia, see section 719(b)(2) of this title.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 702, 719, 726 of this

title.

-FOOTNOTE-

(!1) So in original. Probably should be section "719(c)(3)".

-End-

-CITE-

45 USC Sec. 742 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-HEAD-

Sec. 742. Powers and duties of Corporation

-STATUTE-

The Corporation shall have all of the powers and is subject to

all of the duties vested in it under this chapter, in addition to

the powers conferred upon it under the laws of the State or States

in which it is incorporated and the powers of a railroad in any

State in which it operates. The Corporation is authorized and

directed to -

(a) acquire rail properties designated in the final system plan

to be transferred or conveyed to it;

(b) operate rail service over such rail properties except as

provided under sections 744(e) and 791(d)(3) of this title;

(c) rehabilitate, improve, and modernize such rail properties;

and

(d) maintain adequate and efficient rail services.

So long as 50 per centum or more, as determined by the Secretary of

the Treasury, of the outstanding indebtedness of the Corporation

consists of obligations of the Association or other debts owing to

or guaranteed by the United States, the Corporation shall not

engage in activities which are not related to transportation.

-SOURCE-

(Pub. L. 93-236, title III, Sec. 302, Jan. 2, 1974, 87 Stat. 1005.)

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 741 of this title.

-End-

-CITE-

45 USC Sec. 743 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-HEAD-

Sec. 743. Valuation and conveyance of rail properties

-STATUTE-

(a) Deposit with court

Within 10 days after delivery of a certified copy of a final

system plan pursuant to section 719(c) of this title -

(1) the Corporation, in exchange for the rail properties of the

railroads in reorganization in the region and of railroads

leased, operated, or controlled by railroads in reorganization in

the region to be transferred to the Corporation or any subsidiary

thereof, shall deposit with the special court all of the stock

and other securities of the Corporation and certificates of value

issued by the Association designated in the final system plan to

be exchanged for such rail properties;

(2) each profitable railroad operating in the region and each

state or responsible person (including a government entity)

purchasing rail properties from a railroad in reorganization in

the region, or from a railroad leased, operated, or controlled by

a railroad in reorganization in the region, as provided in the

final system plan shall deposit with the special court the

compensation to be paid for such rail properties.

(b) Conveyance of rail properties

(1) The special court shall, within 10 days after deposit under

subsection (a) of this section of the securities of the

Corporation, certificates of value issued by the Association, and

compensation from the profitable railroads operating in the region,

States, and responsible persons, order the trustee or trustees of

each railroad in reorganization in the region to convey forthwith

to the Corporation or any subsidiary thereof, the respective

profitable railroads operating in the region, States, and

responsible persons all right, title, and interest in the rail

properties of such railroad in reorganization and shall itself

order the conveyance of all right, title, and interest in the rail

properties of any person leased, operated, or controlled by such

railroad in reorganization that are to be conveyed to them under

the final system plan as certified to such court under section

719(d) of this title. In any case where the special court orders

the trustee or trustees of a railroad in reorganization in the

region to execute and deliver deeds or other instruments conveying

rail properties to the Corporation or a subsidiary thereof or to a

profitable railroad operating in the region or a State or

responsible person, those deeds or other instruments may be

executed, acknowledged, and delivered on behalf of the trustee or

trustees by any person or persons who have been duly authorized to

perform such acts on behalf of the trustee or trustees by the

district court of the United States or any other court having

jurisdiction over the respective railroad in reorganization in the

region. Notwithstanding any provision of State or local law, in any

case where deeds or other instruments have been executed,

acknowledged, or delivered by a representative of the trustee or

trustees of a railroad in reorganization in the region in

accordance with the previous sentence, such execution,

acknowledgment, and delivery, and the deeds or other instruments to

which they pertain, shall have the same legal effect as they would

have had if the trustee or trustees had themselves executed,

acknowledged and delivered such deeds or other instruments.

(2) All rail properties conveyed to the Corporation or any

subsidiary thereof the respective profitable railroads operating in

the region, States, and responsible persons under this section

shall be conveyed free and clear of any liens or encumbrances, but

subject to such leases and agreements as shall have previously

burdened such properties or bound the owner or operator thereof in

pursuance of an arrangement with any State, or local or regional

transportation authority under which financial support from such

State, or local or regional transportation authority was being

provided on January 2, 1974, for the continuance of rail passenger

service or any lien or encumbrance of no greater than 5 years'

duration which is necessary for the contractual performance by any

person of duties related to public health or sanitation. Such

conveyances shall not be restrained or enjoined by any court.

(3)(A)(i) Notwithstanding any other provision of this chapter, if

an interest in railroad rolling stock is included in the rail

properties conveyed pursuant to subsection (b)(1) of this section,

and if such conveyance is in accordance with the requirements of

clause (ii) of this subparagraph, the conveyance of such properties

shall be deemed an assignment. Any such assignment shall relieve

the assignor of liability for any breach which occurs after the

date of such conveyance, except that such assignor shall remain

liable for any breach, event of default, or violation of covenant

which occurred (and any charges or obligations which accrued) prior

to the date of such conveyance, regardless of whether the assignee

thereof assumes such liabilities, charges or obligations. If any

such liabilities, charges, or obligations (accrued prior to the

date of such conveyance) are paid by or on behalf of any person or

entity other than such assignor, such person or entity shall have a

claim to direct reimbursement, as a current expense of

administration, from such assignor, together with interest on the

amount so paid.

(ii) A conveyance referred to in clause (i) of this subparagraph

may be effected only if -

(I) the Corporation or a subsidiary thereof, the profitable

railroad operating in the region, or the State or responsible

person to whom such conveyance is made assumes all of the

obligations under any applicable conditional sale agreement,

equipment trust agreement, or lease with respect to such rolling

stock (including any obligations which accrued prior to the date

on which such properties are conveyed), and

(II) such conveyance is made subject to such obligations.

As used in this subparagraph, the term "railroad rolling stock"

means assets which could be carried in Interstate Commerce

Commission account numbers 52, 53, 54, and 57.

(B) Subject to the provisions of this paragraph, the provisions

of this chapter shall not affect the title and interests of any

lessor, equipment trust trustee, or conditional sale vendor under

any conditional sale agreement, equipment trust agreement, or lease

under section 77(j) of the Bankruptcy Act. A profitable railroad

operating in the region, the Corporation or a subsidiary thereof,

or a State or responsible person, to whom such a conveyance is made

as assignee or as lessee, shall assume all liability under such

conditional sale agreement, equipment trust agreement, or lease.

Such an assignment or conveyance to, and such an assumption of

liability by, such a profitable railroad, Corporation, subsidiary,

State, or responsible person shall not be deemed a breach, an event

of default, or a violation of any covenant of any such conditional

sale agreement, equipment trust agreement, or lease so assigned or

conveyed, notwithstanding any provisions of any such agreement or

lease.

(4) Notwithstanding anything to the contrary contained in this

chapter, if a railroad in reorganization has leased rail properties

from a lessor that is neither a railroad nor controlled by or

affiliated with a railroad, and such lease has been approved by the

lessee railroad's reorganization court prior to January 2, 1974,

conveyance of such lease may only be effected if the Corporation,

profitable railroad, State, or responsible person to whom the

conveyance is made assumes all future liability under such lease

and all of the terms and conditions specified in the lease,

including the obligation to pay the specified rent to the

non-railroad lessor.

(5) Notwithstanding any covenant, undertaking, condition, or

provision of any sort in any lease, agreement, or contract, the

conveyance, transfer, assignment, or other disposition of such

lease, agreement, or contract or of any interest therein to, or the

assumption by, the Corporation or any subsidiary thereof, or a

profitable railroad of obligations thereunder, shall not be deemed

a breach, an event of default, or a violation of any covenant of

such lease, agreement, or contract.

(6)(A) Notwithstanding anything to the contrary contained in this

chapter or any other other (!1) provision of law, the special court

shall include in its order such further directions as may be

necessary to assure (i) that the operation and administration of

the employee pension benefit plans described in section 775(a) (!2)

of this title shall be continued, without termination or

interruption, by the Corporation until such time as the Corporation

elects to amend or terminate any such plan, in whole or in part;

and (ii) that appropriate transfers and assignments with respect to

all rights and obligations relating to such plans shall be made to

the Corporation for such purposes, without prejudice to payment of

consideration for whatever rights any railroad in reorganization

may have in any residual assets under any such employee pension

benefit plan. No court shall enter any judgment against the

Corporation with respect to any such rights, except that the

special court may enter such a judgment in an order issued by it

pursuant to subsection (c) of this section, after taking into

consideration the rights and obligations transferred pursuant to

this paragraph. All liabilities as an employer shall be imposed

solely upon the railroad in reorganization in the event such plan

is terminated, in whole or in part, by the Corporation within 1

year after the date of such transfer or assignment (except

liabilities as an employer under the Employee Retirement Income

Security Act of 1974 [29 U.S.C. 1001 et seq.] for benefits accruing

during such period), except that in any case in which the

Corporation, on or after the date of transfer or assignment as

provided by this paragraph, terminates in whole or in part any such

plan, the benefits under which are not guaranteed under title IV of

the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1301

et seq.], the Corporation shall guarantee the payment when due of

the accrued pension benefits provided for thereunder at the time of

termination. The Corporation shall be entitled to a loan pursuant

to section 721(h) of this title in an amount required for the

adequate funding of accrued pension benefits under all plans

transferred or assigned to the Corporation in accordance with this

paragraph (whether or not terminated by the Corporation). For

purposes of such section 721(h) and notwithstanding any other

provision of Federal or State law, amounts required for such

adequate funding shall be deemed to be expenses of administration

of the respective estates of the railroads in reorganization, due

and payable as of the date of transfer or assignment of the plans

to the Corporation.

(B) The Corporation shall, through the purchase of insurance or

otherwise, maintain in effect any medical insurance coverage or so

much of any life insurance coverage that does not exceed in death

benefits an amount equal to twice the employee's annual salary at

the time of retirement or $60,000, whichever is lower, which

coverage was maintained by a railroad in reorganization in the

region immediately prior to April 1, 1976, and which provides

insurance benefits to employees who retired, prior to April 1,

1976, from service with such a railroad. With respect to any such

employee whose medical or life insurance coverage lapsed after

April 1, 1976, due to nonpayment of premiums, the Corporation shall

-

(i) through the purchase of insurance or otherwise, provide

medical insurance benefits or life insurance benefits at the same

level as were provided by the employer railroad in reorganization

and in effect with respect to such employees immediately prior to

April 1, 1976, except that the life insurance benefits so

provided shall not exceed in death benefits an amount equal to

twice the employee's annual salary at the time of retirement or

$60,000, whichever is lower; and

(ii) assume and pay any claim for such employee (or his

personal representative) for any such insurance benefits, if -

(I) such claim arose during the period beginning April 1,

1976, and ending on the date insurance coverage is provided

pursuant to clause (i) of this subparagraph;

(II) such benefits were not paid by an insurer solely because

of the lapse of the insurance coverage during such period,

except that such death benefits shall not be paid for any such

employee in excess of an amount equal to twice the employee's

annual salary at the time of retirement or $60,000, whichever is

lower.

The Corporation shall be entitled to a loan pursuant to section

721(h) of this title in an amount required for the payment of

insurance premiums and benefits described in this subparagraph. For

purposes of section 721(h)(4)(A)(iii) of this title, amounts

required for the payment of such premiums and benefits shall be

deemed to be valid administrative claims against the respective

estates of the railroads in reorganization, due and payable as of

April 1, 1976, or, in the case of a railroad in reorganization

which is not subject to a bankruptcy proceeding, such amounts shall

be deemed to be obligations of such railroad, due and payable as of

such date, and shall be reimbursable in accordance with the

procedures set forth in paragraphs (4) and (5) of such section

721(h) of this title. As used in this subparagraph, the term

"railroad in reorganization" includes any railroad which is

controlled by a railroad in reorganization but is not itself

subject to a bankruptcy proceeding, if such railroad conveyed

substantially all of its rail properties to the Corporation

pursuant to paragraph (1) of this subsection and conducted

operations over such rail properties prior to the date of such

conveyance.

(c) Findings and distribution

(1) After the rail properties have been conveyed to the

Corporation or any subsidiary thereof, profitable railroads

operating in the region, States, and responsible persons under

subsection (b) of this section, the special court, giving due

consideration to the findings contained in the final system plan,

shall decide -

(A) whether the transfers or conveyances -

(i) of rail properties of each railroad in reorganization, or

of each railroad leased, operated, or controlled by a railroad

in reorganization, to the Corporation or any subsidiary thereof

in exchange for the certificates of value and the other

benefits accruing to such railroad as a result of such exchange

(taking into consideration compensable unconstitutional

erosion, if any, which the special court finds to have occurred

in the estate of each such railroad, during the bankruptcy

proceeding with respect to such railroad) as provided in the

final system plan and this chapter, and

(ii) of rail properties of each railroad in reorganization,

or of each railroad leased, operated, or controlled by a

railroad in reorganization, to a profitable railroad operating

in the region in exchange for compensation and other benefits

accruing to such transferor as a result of such exchange

(taking into consideration compensable unconstitutional

erosion, if any, which the special court finds to have occurred

in the estate of each such railroad, during the bankruptcy

proceeding with respect to such railroad) State, or responsible

person in accordance with the final system plan,

are in the public interest and are fair and equitable to the

estate of each railroad in reorganization in accordance with the

standard of fairness and equity applicable to the approval of a

plan of reorganization or a step in such a plan under section 77

of the Bankruptcy Act, or fair and equitable to a railroad that

is not itself in reorganization but which is leased, operated, or

controlled by a railroad in reorganization;

(B) whether the transfers or conveyances are more fair and

equitable than is required as a constitutional minimum; and

(C) what portion of the proceeds received by a railroad in

reorganization from an entity other than the Corporation or any

subsidiary thereof for the sale, lease, or transfer of property

subject to an agreement under section 723 or section 725(a)(1) or

(2) of this title reflects value attributable to the maintenance

or improvement provided pursuant to the agreement.

(2) If the special court finds that the terms of one or more

exchanges for certificates of value and other benefits are not fair

and equitable to an estate of a railroad in reorganization, or to a

railroad leased, operated, or controlled by a railroad in

reorganization (taking into consideration compensable

unconstitutional erosion, if any, which the special court finds to

have occurred in the estate of each such railroad, during the

bankruptcy proceeding with respect to such railroad), which has

transferred rail properties pursuant to the final system plan, it

may -

(A) enter a judgment reallocating the certificates of value in

a fair and equitable manner if they have not been fairly

allocated among the railroads transferring rail properties to the

Corporation or any subsidiary thereof, except that one

certificate of value shall be allocated to each such railroad;

and

(B) if the lack of fairness and equity cannot be completely

cured by a reallocation of the certificates of value, order the

Corporation to provide for the transfer to the railroad of

certificates of value issued by the Association as designated in

the final system plan in such nature and amount as would make the

exchange or exchanges fair and equitable; and

(C) enter a judgment against the Corporation if the judgment

would not endanger the viability or solvency of the Corporation.

(3) If the special court finds that the terms of one or more

conveyances of rail properties to a profitable railroad operating

in the region, State, or responsible person in accordance with the

final system plan are not fair and equitable, it shall enter a

judgment against such profitable railroad, State, or responsible

person. If the special court finds that the terms of one or more

conveyances or exchanges for certificates of value or other

benefits are fairer and more equitable than is required as a

constitutional minimum, then it shall order the return of any

excess certificates of value, or compensation to the Corporation or

a profitable railroad, State, or responsible person so as not to

exceed the constitutional minimum standard of fairness and equity.

The special court shall also find the amount of the payments, if

any, which each profitable railroad has made on behalf of a

transferor railroad in reorganization in accordance with section

721(h) of this title, for which payment the profitable railroad has

not been reimbursed, as provided in section 721(h) of this title.

Notwithstanding any other provision of this paragraph or of

paragraph (4), the special court shall order the return to any such

profitable railroad from compensation deposited by such profitable

railroad pursuant to subsection (a)(2) of this section, of any such

amount so found together with interest at the rate provided in

section 721(h) of this title. In making any finding under this

paragraph, the special court shall take into consideration

compensable unconstitutional erosion, if any, which it finds to

have occurred in the estate of a railroad in reorganization in the

region, or of a railroad leased, operated, or controlled by such a

railroad, during the bankruptcy proceeding with respect to such

railroad.

(4) Upon making the findings referred to in this subsection, the

special court shall order distribution of the certificates of value

and compensation deposited with it under subsection (a) of this

section to the trustee or trustees of each railroad in

reorganization in the region and to persons leased, operated, or

controlled by such railroads who so transferred or conveyed rail

properties who conveyed right, title, and interest in rail

properties to the Corporation and the respective profitable

railroads, States, and responsible persons under such subsection.

(5) Whenever the special court, pursuant to subsection (b)(1) of

this section, orders the transfer or conveyance of rail properties

-

(A) designated under section 716(c)(1)(C) or (D) of this title,

to the Corporation or any subsidiary thereof, the United States

shall indemnify the Corporation against any costs or liabilities

imposed on the Corporation as the result of any judgment entered

against the Corporation, with respect to such properties, under

paragraph (2) of this subsection; and

(B) to the National Railroad Passenger Corporation, a

profitable railroad operating in the region, a State, or any

other responsible person (including a governmental entity), the

United States shall indemnify such Corporation, railroad, State,

or person against any costs or liabilities imposed thereon as the

result of any judgment entered against such Corporation,

railroad, State, or person under paragraph (3) of this

subsection;

plus interest on the amount of such judgment at such rate as is

constitutionally required. The United States may, in its

discretion, represent the Corporation or the National Railroad

Passenger Corporation, such profitable railroad, State or

responsible person, in any proceedings before the special court

that could result in such a judgment against the Corporation under

paragraph (2) of this subsection or against the National Railroad

Passenger Corporation, such profitable railroad, State or

responsible person, under paragraph (3) of this subsection. The

Corporation, the National Railroad Passenger Corporation, any

profitable railroad, State, or responsible person, which is

represented by the United States of America shall cooperate

diligently in whatever manner the United States shall reasonably

request of it in connection with such proceedings. Neither the

Corporation, or its subsidiaries, nor the National Railroad

Passenger Corporation, any profitable railroad, State or

responsible person, shall be obligated to reimburse the United

States for any moneys paid by the United States pursuant to this

section.

(6) Whenever the Corporation exercises an option to acquire, or

acquires, interests in rail marine freight floating equipment

pursuant to the recommendations of the final system plan, and the

Corporation thereafter makes such floating equipment available to a

profitable railroad operating in the region, a State, or a

responsible person including (!3) a government entity), the United

States shall indemnify -

(A) the Corporation against any costs or liabilities imposed on

the Corporation as the result of any judgment entered against it,

with respect to such equipment, under paragraph (2) of this

subsection; and

(B) such profitable railroad, State, or responsible person

against any costs or liabilities imposed thereon as the result of

any judgment entered against such profitable railroads, State, or

responsible person under paragraph (3) of this subsection,

plus interest on the amount of such judgment at such rate as is

constitutionally required.

(d) Appeal

An order or judgment entered by the United States District Court

for the District of Columbia pursuant to subsection (c) of this

section or section 746 of this title shall be reviewable in

accordance with sections 1291, 1292, and 1294 of title 28.

(e) Transfer and other taxes and recording fees

All transfers or conveyances of rail properties (whether real,

personal, or mixed) which are made under this chapter (including

transfers and conveyances which are made in accordance with a

supplemental transaction pursuant to section 745 of this title or

which are made at any time to carry out the purposes of section

791(d) of this title) shall be exempt from any taxes, imposts, or

levies now or hereafter imposed, by the United States or by any

State or any political subdivision of a State, on or in connection

with such transfers or conveyances or on the recording of deeds,

bills of sale, liens, encumbrances, or other instruments

evidencing, effectuating, or incident to any such transfers or

conveyances, whether imposed on the transferor or on the

transferee. Such transferors and transferees shall be entitled to

record any such deeds, bills of sale, liens, encumbrances, or other

instruments and, consistent with the designations and applicable

principles in the final system plan, to record the release or

removal of any pre-existing liens or encumbrances of record with

respect to properties so transferred or conveyed, upon payment of

any appropriate and generally applicable charges to compensate for

the cost of the service performed.

-SOURCE-

(Pub. L. 93-236, title III, Sec. 303, Jan. 2, 1974, 87 Stat. 1005;

Pub. L. 94-5, Sec. 8, Feb. 28, 1975, 89 Stat. 9; Pub. L. 94-210,

title VI Secs. 601(d), 612(a), (c)-(i), (k), (l), (n)-(q), Feb. 5,

1976, 90 Stat. 84, 107-111; Pub. L. 94-436, Secs. 3, 5, Sept. 30,

1976, 90 Stat. 1398, 1399; Pub. L. 94-555, title II, Secs. 202(b),

204, 220(b), Oct. 19, 1976, 90 Stat. 2616, 2620, 2629; Pub. L.

95-199, Sec. 4, Nov. 23, 1977, 91 Stat. 1424; Pub. L. 95-597, Sec.

1, Nov. 4, 1978, 92 Stat. 2547; Pub. L. 96-73, title II, Sec.

204(a), Sept. 29, 1979, 93 Stat. 556; Pub. L. 97-35, title XI, Sec.

1167(a), Aug. 13, 1981, 95 Stat. 686; Pub. L. 100-352, Sec. 6(e),

June 27, 1988, 102 Stat. 664; Pub. L. 103-272, Sec. 7(b), July 5,

1994, 108 Stat. 1379; Pub. L. 104-317, title VI, Sec. 605(b)(2),

Oct. 19, 1996, 110 Stat. 3858.)

-REFTEXT-

REFERENCES IN TEXT

Section 77 of the Bankruptcy Act, referred to in subsecs.

(b)(3)(B) and (c)(1)(A)(ii), was classified to section 205 of

former Title 11, Bankruptcy. The Bankruptcy Act (act July 1, 1898,

ch. 541, 30 Stat. 544, as amended) was repealed effective Oct. 1,

1979, by Pub. L. 95-598, Secs. 401(a), 402(a), Nov. 6, 1978, 92

Stat. 2682, section 101 of which enacted revised Title 11. For

current provisions relating to railroad reorganization, see

subchapter IV (Sec. 1161 et seq.) of chapter 11 of Title 11.

Section 775 of this title, referred to in subsec. (b)(6)(A), was

repealed by Pub. L. 97-35, title XI, Sec. 1144(a)(1), Aug. 13,

1981, 95 Stat. 669.

The Employee Retirement Income Security Act of 1974, referred to

in subsec. (b)(6)(A), is Pub. L. 93-406, Sept. 2, 1974, 88 Stat.

829, as amended. Title IV of the Employee Retirement Income

Security Act of 1974 is classified principally to subchapter III

(Sec. 1301 et seq.) of chapter 18 of Title 29, Labor. For complete

classification of this Act to the Code, see Short Title note set

out under section 1001 of Title 29 and Tables.

-COD-

CODIFICATION

The amendments made by section 612(i)(4) of Pub. L. 94-210 could

be read as substituting "certificates of value" for "obligations"

in subsecs. (b)(3)(A), (b)(5), and (b)(6), as added by section

612(a) and (l) of Pub. L. 94-210. However, this substitution is not

appropriate in the context of the new subsecs. (b)(3)(A), (b)(5),

and (b)(6).

-MISC1-

AMENDMENTS

1996 - Subsec. (d). Pub. L. 104-317 substituted "Appeal" for

"Review" in heading and amended text generally. Prior to amendment,

text read as follows: "A finding or determination entered by the

special court pursuant to subsection (c) of this section or section

746 of this title shall be reviewable only upon petition for a writ

of certiorari to the Supreme Court of the United States. Such

review is exclusive and any such petition shall be filed in the

Supreme Court not more than 20 days after entry of such finding or

determination."

1994 - Subsec. (e). Pub. L. 103-272 struck out "title VII of the

Railroad Revitalization and Regulatory Reform Act of 1976 or of"

before "section 791(d)".

1988 - Subsec. (d). Pub. L. 100-352 substituted "Review" for

"Appeal" in heading and amended text generally. Prior to amendment,

text read as follows: "A finding or determination entered by the

special court pursuant to subsection (c) of this section or section

746 of this title may be appealed directly to the Supreme Court of

the United States in the same manner that an injunction order may

be appealed under section 1253 of title 28: Provided, That such

appeal is exclusive and shall be filed in the Supreme Court not

more than 20 days after such finding or determination is entered by

the special court. The Supreme Court shall dismiss any such appeal

within 7 days after the entry of such an appeal if it determines

that such an appeal would not be in the interest of an expeditious

conclusion of the proceedings and shall grant the highest priority

to the determination of any such appeals which it determines not to

dismiss."

1981 - Subsec. (c). Pub. L. 97-35 struck out all references to

securities wherever appearing in text, and reference to share of

series B preferred stock.

1979 - Subsec. (b)(6)(B). Pub. L. 96-73 inserted provisions which

limited coverage to amount that does not exceed in death benefits

amount equal to twice the employee's annual salary at time of

retirement or $60,000, whichever is lower, provided for maintenance

of regional coverage, and in cases of lapsed coverage due to

nonpayment of premiums prescribed the same limitation for claims

arising during the lapsed period or thereafter.

1978 - Subsec. (b)(6). Pub. L. 95-597 redesignated existing

provisions as subpar. (A), redesignated clauses (A) and (B) as (i)

and (ii), respectively, and added subpar. (B).

1977 - Subsec. (d). Pub. L. 95-199 substituted "entered by the

special court pursuant to subsection (c) of this section or section

746 of this title" for "entered pursuant to subsection (c) of this

section".

1976 - Subsec. (a)(1). Pub. L. 94-210, Sec. 612(c)(1), (i),

inserted "or any subsidiary thereof" before ", shall deposit", and

substituted "certificates of value issued by" for "obligations of".

Subsec. (a)(2). Pub. L. 94-210, Sec. 612(d)(1), inserted

reference to each State or responsible person (including a

governmental entity).

Subsec. (b)(1). Pub. L. 94-210, Sec. 612(c)(2), (d)(2), (i), (o),

(p), inserted "or any subsidiary thereof" after "to the

Corporation", "States, and responsible persons" before "order the

trustee", and provisions relating to orders of the trustee or

trustees to execute and deliver deeds or other instruments

conveying rail properties, and substituted "person leased" for

"railroad leased", ", the respective profitable railroads operating

in the region, States, and responsible persons" for "and the

respective profitable railroads operating in the region", and

"certificates of value issued by" for "obligations of".

Subsec. (b)(2). Pub. L. 94-210, Sec. 612(c)(2), (d)(3), inserted

"or any subsidiary thereof" after "Corporation" and reference to

States and responsible persons.

Subsec. (b)(3). Pub. L. 94-210, Sec. 612(a), redesignated

existing provisions as subpar. (A)(ii), made changes in

phraseology, inserted definition of "railroad rolling stock" and

struck out provisions relating to affect of chapter on title and

interests of any lessor, etc., and added subpar. (A)(i) and (B).

Subsec. (b)(4). Pub. L. 94-210, Sec. 612(d)(4), (k), inserted

"all future liability under such lease and" after "is made

assumes", and substituted ", profitable railroad, State, or

responsible person" for "or the profitable railroad".

Subsec. (b)(5), (6). Pub. L. 94-210, Sec. 612(l), added pars. (5)

and (6).

Subsec. (b)(6). Pub. L. 94-555, Sec. 204, inserted provisions

entitling the Corporation to a loan to fund accrued, non-guaranteed

pension benefits under all plans transferred or assigned to the

Corporation, whether terminated or not, and such loan is to be

charged to the estate of railroad in reorganization as an

administrative expense.

Subsec. (c)(1). Pub. L. 94-210, Sec. 612(c)(3), (d)(5), (6), (i),

(q)(1), (2), in introductory text inserted "or any subsidiary

thereof" after "Corporation" and inserted reference to States and

responsible persons, in subpar. (A)(i) inserted "or any subsidiary

thereof" after "Corporation" and ", certificates of value" after

"securities", and inserted provision relating to consideration of

compensable unconstitutional erosion, in subpar. (A)(ii) inserted

reference to State or responsible person, and provision relating to

compensation and other benefits accruing to such transferor as a

result of the exchange, and in subpar. (C) inserted "or any

subsidiary thereof" after "Corporation".

Subsec. (c)(2). Pub. L. 94-210, Sec. 612(c)(4), (e), (i), (q)(3),

in introductory text inserted reference to certificates of value

and provision relating to consideration of compensable

unconstitutional erosion, and substituted "may" for "shall", in

subpar. (A) inserted reference to any subsidiary of a Corporation,

exception relating to allocation to each such railroad of preferred

stock, etc., ", certificates of value" after "securities" and "and

certificates of value" after "of the Corporation", in subpar. (B)

inserted "and certificates of value" after "Corporation's

securities" and ", certificates of value" after "other securities",

and substituted "certificates of value issued by the Association"

for "obligations of the Association", and in subpar. (C) generally

revised criteria for entering a judgment against the Corporation.

Subsec. (c)(2)(A). Pub. L. 94-555, Sec. 220(b)(1), (2),

substituted "securities and certificates of value" for "securities

and certificates of value of the Corporation and certificates of

value" after "reallocating the" and "they have" for "it has" after

"equitable manner".

Subsec. (c)(2)(B). Pub. L. 94-555, Sec. 220(b)(3), (4),

substituted "securities and certificates of value" for

"Corporation's securities, certificates of value" after

"reallocation of", and substituted "other securities" for "other

securities and certificates of value" after "the railroad of".

Subsec. (c)(3). Pub. L. 94-555, Sec. 220(b)(5), substituted

"subsection (a)(2) of this section" for "section 303(a)(2)", in the

original, necessitating no change in text.

Pub. L. 94-210, Sec. 612(d)(7), (i), (n), (q)(4), inserted

references to States or responsible persons wherever appearing,

provisions relating to unreimbursed payments made by the profitable

railroad on behalf of the transferor railroad in reorganization,

provisions relating to consideration by the special court of

compensable unconstitutional erosion, and "certificates of value"

after "securities", and substituted "certificates of value" for

"obligations".

Subsec. (c)(4). Pub. L. 94-210, Sec. 612(d)(8), (h), (i),

inserted ", States, and responsible persons" after "profitable

railroads" and "and to persons leased, operated, or controlled by

such railroads who so transferred or conveyed rail properties"

after "region", and substituted "(a)" for "(b)" and "certificates

of value" for "obligations".

Subsec. (c)(5). Pub. L. 94-436, Sec. 3, restructured first

sentence limiting indemnification of United States to judgments

against Corporation or any subsidiary entered pursuant to par. (2)

and to judgments against the National Railroad Passenger

Corporation, profitable railroads, a State, or any responsible

person entered pursuant to par. (3).

Pub. L. 94-210, Sec. 612(f), added par. (5).

Subsec. (c)(6). Pub. L. 94-555, Sec. 202(b), added par. (6).

Subsec. (d). Pub. L. 94-210, Sec. 612(g), substituted "20" for

"5".

Subsec. (e). Pub. L. 94-436, Sec. 5, inserted, after "section 745

of this title" in second parenthetical expression, "or which are

made at any time to carry out the purposes of title VII of the

Railroad Revitalization and Regulatory Reform Act of 1976 or

section 791 of this title".

Pub. L. 94-210, Sec. 601(d), added subsec. (e).

1975 - Subsec. (c)(1)(C). Pub. L. 94-5 added subpar. (C).

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-317 effective 90 days after Oct. 19,

1996, and except as otherwise provided, applicable to proceedings

that arise or continue after such effective date, see section

605(e) of Pub. L. 104-317, set out as a note under section 719 of

this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-352 effective ninety days after June 27,

1988, except that such amendment not to apply to cases pending in

Supreme Court on such effective date or affect right to review or

manner of reviewing judgment or decree of court which was entered

before such effective date, see section 7 of Pub. L. 100-352, set

out as a note under section 1254 of Title 28, Judiciary and

Judicial Procedure.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section

1169 of Pub. L. 97-35, set out as an Effective Date note under

section 1101 of this title.

EFFECTIVE DATE OF 1979 AMENDMENT

Section 501(b) of Pub. L. 96-73 provided that: "The amendments

made by section 204 of this Act [enacting subsec. (b)(6)(B) of this

section and section 721(h)(1)(A)(viii), (6) of this title] shall be

effective as of the date of enactment [Nov. 4, 1978] of Pub. L.

95-597."

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-555 effective Oct. 1, 1976, see section

303 of Pub. L. 94-555, set out as a note under section 702 of this

title.

-TRANS-

ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGANIZATION ACT OF

1973, AND TRANSFER OF FUNCTIONS

Special court abolished and all jurisdiction and functions

transferred to United States District Court for District of

Columbia, see section 719(b)(2) of this title.

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

CASES PENDING IN SPECIAL COURT

For applicability of amendment by Pub. L. 104-317 to cases

pending in special court established under section 719(b) of this

title, see section 605(d) of Pub. L. 104-317, set out as a note

under section 719 of this title.

ADMINISTRATIVE CLAIM STATUS

Section 2 of Pub. L. 95-597 provided that: "The conferring of

administrative claim status on amounts paid for the insurance

premiums and benefits described in the amendment made by the first

section of this Act [amending this section] shall be effective

solely for purposes of meeting the conditions set forth in section

211(h)(4)(A)(iii) of the Regional Rail Reorganization Act of 1973

[section 721(h)(4)(A)(iii) of this title] with respect to which

obligations of the estate of a railroad in reorganization may be

paid pursuant to such section 211(h) [section 721(h) of this

title], and shall not be construed -

"(1) as affecting the jurisdiction of the district court having

jurisdiction over such a railroad in reorganization to determine

whether such insurance premiums and benefits constitute

enforceable contractual obligations of the estate of such a

railroad for purposes of reimbursement under such section 211(h)

[section 721(h) of this title]; or

"(2) as establishing or reordering any priority which a claim

against the estate of such a railroad for reimbursement for the

amounts paid for such insurance premiums and benefits may or may

not have under the provisions of the Bankruptcy Act [section 1 et

seq. of former Title 11, Bankruptcy] or any other law."

CORPORATION AS SUCCESSOR IN INTEREST

Section 3 of Pub. L. 95-597 provided that: "Notwithstanding any

other provision of law, any corporation which, pursuant to a plan

of reorganization under section 77 of the Bankruptcy Act [section

205 of former Title 11, Bankruptcy], is the successor in interest

to a railroad in reorganization shall have standing to assert, in

any judicial or administrative proceeding, any claim or defense

available to such railroad in reorganization with respect to

whether the insurance benefits and premiums described in the

amendment made by the first section of this Act [amending this

section] constitute enforceable contractual obligations of the

estate of such railroad in reorganization. For purposes of this

section, the term 'railroad in reorganization' has the meaning

given such term in paragraph (14) of section 102 of the Regional

Rail Reorganization Act of 1973 [section 702(14) of this title]."

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 712, 716, 719, 721, 724,

725, 726, 741, 744, 745, 746, 791, 797h of this title; title 49

section 24907.

-FOOTNOTE-

(!1) So in original.

(!2) See References in Text note below.

(!3) So in original. Probably should be "(including".

-End-

-CITE-

45 USC Sec. 744 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-HEAD-

Sec. 744. Termination and continuation of rail services

-STATUTE-

(a) Discontinuance

(1) Except as provided in subsections (c) and (f) of this

section, rail service on rail properties of a railroad in

reorganization in the region, or of a person leased, operated, or

controlled by such a railroad, which transfers to the Corporation

or to profitable railroads operating in the region all or

substantially all of its rail properties designated for such

conveyance in the final system plan, and rail service on rail

properties of a profitable railroad operating in the region which

transfers substantially all of its rail properties to the

Corporation or to other railroads pursuant to the final system

plan, may be discontinued, to the extent such discontinuance is not

precluded by the terms of the leases and agreements referred to in

section 743(b)(2) of this title, if -

(A) the final system plan does not designate rail service to be

operated over such rail properties;

(B) not sooner than 30 days following the effective date of the

final system plan, the trustee or trustees of the applicable

railroad in reorganization or a profitable railroad give notice

in writing of intent to discontinue such service on a date

certain which is not less than 60 days after the date of such

notice or on the date of any conveyance ordered by the special

court pursuant to section 743(b)(1) of this title, whichever is

later; and

(C) the notice required by subparagraph (B) of this paragraph

is sent by certified mail to the Commission; to the chief

executive officer, the transportation agencies, and the

government of each political subdivision of each State in which

such rail properties are located; and to each shipper who has

used such rail service during the previous 12 months.

(2)(A) If rail properties are not, in accordance with the

designations in the final system plan, required to be operated, as

a consequence of a recommended arrangement for joint use or

operation of rail properties (under section 716(g) of this title)

or as part of a coordination project (under sections 716(c) and (g)

of this title), rail service on such properties may be

discontinued, subsequent to the date of conveyance of rail

properties pursuant to such section 743(b)(1) of this title, if the

Commission determines that such rail service on such rail

properties is not compensatory and if -

(i) the petitioner and any other railroad involved in such

arrangement or coordination project have, prior to filing an

application for such discontinuance, entered into a binding

agreement (effective on or before the effective date of such

discontinuance) to carry out such arrangement or project;

(ii) such application is filed with the Commission not later

than 1 year after the effective date of the final system plan;

and

(iii) such discontinuance is not precluded by the terms of the

leases and agreements referred to in such section 743(b)(2).

(B) For purposes of this paragraph, rail service on rail

properties is compensatory if the revenue attributable to such

properties from such service equals or exceeds the sum of the

avoidable costs of providing such service on such properties plus a

reasonable return on the value of such rail properties, as

determined in accordance with the standards developed pursuant to

section 10362(b)(6) (!1) of title 49.

(C) The Commission shall make its final determination, with

respect to any discontinuance requested under this paragraph, not

later than 120 days after the date of filing of an application

therefor. The applicant shall have the burden of proving that the

service involved is not compensatory. If the Commission fails to

make a final determination within such time, the application shall

be deemed to be granted.

(D) The Commission may issue such rules, regulations, and

procedures as it deems necessary for the conduct of its functions

under this paragraph.

(b) Abandonment

(1) Except as provided in subsections (c) and (f) of this

section, rail properties over which rail service has been

discontinued under subsection (a) of this section may not be

abandoned sooner than 120 days after the effective date of the

discontinuance. Thereafter, except as provided in subsection (c) of

this section, such rail properties may be abandoned upon 30 days'

notice in writing to any person (including a government entity)

required to receive notice under subsection (a)(1)(C) of this

section.

(2) In any case in which rail properties proposed to be abandoned

under this section are designated by the final system plan as rail

properties which are suitable for use for other public purposes

(including roads or highways, other forms of mass transportation,

conservation, and recreation), such rail properties shall not be

sold, leased, exchanged, or otherwise disposed of during the

240-day period beginning on the date of notice of proposed

abandonment under this section unless such rail properties have

first been offered, upon reasonable terms, for acquisition for

public purposes.

(3) Rail service may be discontinued, under subsection (a) of

this section, and rail properties may be abandoned, under this

section, notwithstanding any provision of part A of subtitle IV of

title 49, the constitution or law of any State, or the decision of

any court or administrative agency of the United States or of any

State.

(c) Continuation of rail services

No rail service may be discontinued and no rail properties may be

abandoned, pursuant to this section -

(1) in the case of service and properties referred to in

subsections (a)(1) and (b)(1) of this section, after 2 years from

the effective date of the final system plan or more than 2 years

after the date on which the final rail service continuation

payment is received, whichever is later; or

(2) if a financially responsible person (including a government

entity) offers -

(A) to provide a rail service continuation payment which is

designed to cover the difference between the revenue

attributable to such rail properties and the avoidable costs of

providing rail service on such properties, together with a

reasonable return on the value of such properties;

(B) to provide a rail service continuation payment which is

payable pursuant to a lease or agreement with a State or with a

local or regional transportation authority under which

financial support was being provided on January 2, 1974 for the

continuation of rail passenger service; or

(C) to purchase, pursuant to subsection (f) of this section,

such rail properties in order to operate rail services thereon.

If a rail service continuation payment is offered, pursuant to

paragraph (2)(A) of this subsection, for both freight and passenger

service on the same rail properties, the owner of such properties

may not be entitled to more than one payment of a reasonable return

on the value of such properties.

(d) Rail freight service

(1) If a rail service continuation payment is offered, pursuant

to subsection (c)(2)(A) of this section, for rail freight service,

the person offering such payment shall designate the operator of

such service and enter into an operating agreement with such

operator. The person offering such payment shall designate as the

operator of such service -

(A) the Corporation, if rail properties of the Corporation

connect with the line of railroad involved, unless the Commission

determines that such rail service continuation could be performed

more efficiently and economically by another railroad;

(B) any other railroad whose rail properties connect with such

line, if the Corporation's rail properties do not so connect or

if the Commission makes a determination in accordance with

subparagraph (A) of this paragraph; or

(C) any responsible person (including a government entity)

which is willing to operate rail service over such rail

properties.

A designated railroad may refuse to enter into such an operating

agreement only if the Commission determines, on petition by any

affected party, that the agreement would substantially impair such

railroad's ability to serve adequately its own patrons or to meet

its outstanding common carrier obligations. The designated operator

shall, pursuant to each such operating agreement (i) be obligated

to operate rail freight service on such rail properties, and (ii)

be entitled to receive, from the person offering such payment, the

difference between the revenue attributable to such properties and

the avoidable costs of providing service on such rail properties,

together with a reasonable management fee, as determined by the

Office.

(2) The trustees of a railroad in reorganization shall permit

rail service to be continued on any rail properties with respect to

which a rail service continuation payment operating agreement has

been entered into under this subsection. Such trustees shall

receive a reasonable return on the value of such properties, as

determined in accordance with the standards developed pursuant to

section 10362(b)(6) (!2) of title 49.

(3) If necessary to prevent any disruption or loss of rail

service, at any time after the date of conveyance, pursuant to

section 743(b)(1) of this title, the Commission shall take such

action as may be appropriate under its existing authority

(including the enforcement of common carrier requirements

applicable to railroads in reorganization in the region) to ensure

compliance with obligations imposed under this subsection. The

district courts of the United States shall have jurisdiction, upon

petition by the Commission or any interested person (including a

government entity), to enforce any order of the Commission issued

pursuant to the exercise of its authority under this subsection, or

to enjoin any designated entity or the trustees of a railroad in

reorganization in the region from refusing to comply with the

provisions of this subsection.

(4) No determination of reasonable payment for the use of rail

properties of a railroad in reorganization in the region, and no

determination of value of rail properties of such a railroad

(including supporting or related documents or reports of any kind)

which is made in connection with any lease agreement, contract of

sale, or other agreement or understanding which is entered into

after October 19, 1976 -

(A) pursuant to this section; or

(B) pursuant to section 762 (!2) of this title or section 17

(!2) of the Federal Transit Act (49 U.S.C. 1613),

shall be admitted as evidence, or used for any other purpose, in

any civil action, or any other proceeding for damages or

compensation, arising under this chapter.

(e) Rail passenger service

(1) The Corporation (or a profitable railroad) shall provide rail

passenger service for a period of 180 days immediately following

the date of conveyance (pursuant to section 743(b)(1) of this

title), with respect to any rail properties over which a railroad

in reorganization in the region, or a person leased, operated, or

controlled by such a railroad, was providing rail passenger service

immediately prior to such date of conveyance. Such service shall be

provided on such properties regardless of whether or not such

properties are designated in the final system plan as rail

properties over which rail service is required to be operated,

except with respect to properties over which such service is

provided by the National Railroad Passenger Corporation.

(2) If a State (or a local or regional transportation authority)

was providing financial assistance to support the operation of rail

passenger service, pursuant to a lease or agreement which was in

effect immediately prior to the date of conveyance (pursuant to

such section 743(b)(1) of this title), the Corporation (or a

profitable railroad) shall be bound by the service provisions of

such lease or agreement for the duration of the 180-day mandatory

operation period specified in paragraph (1) of this subsection. If

a State or such an authority was providing financial assistance for

the continuation of rail passenger service on rail properties

immediately prior to such date of conveyance, it shall provide the

same level of financial assistance during such 180-day mandatory

operation period. If no such financial assistance was being

provided or if no such lease or agreement was in effect immediately

prior to such date of conveyance, with respect to any such rail

properties, the Corporation (or a profitable railroad) shall

provide the same level of rail passenger service, for the duration

of such 180-day mandatory operation period, that was provided prior

to such date by the applicable railroad. If -

(A) such financial assistance is not provided;

(B) a State (or a local or regional transportation authority)

has not, by the end of such 180-day mandatory operation period,

offered a rail service continuation payment pursuant to

subsection (c)(2)(A) of this section;

(C) an applicable rail service continuation payment pursuant to

such subsection (c)(2)(A) of this section is not paid when it is

due; or

(D) a payment required under a lease or agreement, pursuant to

section 743(b)(2) of this title or subsection (c)(2)(B) of this

section, is not paid when it is due,

the Corporation (or, where applicable, the National Railroad

Passenger Corporation, a profitable railroad, or the trustee or

trustees of a railroad in reorganization in the region) may (i)

discontinue such rail passenger service, and (ii) with respect to

rail properties not designated for inclusion in the final system

plan, abandon such properties pursuant to subsections (a) and (b)

of this section.

(3) Nothing in this subsection shall be construed to affect the

obligation of the Corporation (or a profitable railroad), or of the

trustees of the railroads in reorganization in the region, to

provide rail passenger service pursuant to section 743(b)(2) of

this title or subsection (c)(2)(B) of this section.

(4) If a State (or a local or regional transportation authority)

-

(A) offers a rail service continuation payment, pursuant to

subsection (c)(2)(A) of the (!3) section, for the operation of

rail passenger service after the 180-day mandatory operation

period, and

(B) provides compensation, pursuant to paragraph (2) of this

subsection, for operations conducted during the 180-day mandatory

operation period; or

(C) offers a rail service continuation payment, pursuant to

subsection (c)(2)(A) of this section, for the operation of rail

passenger service provided under an agreement or lease pursuant

to section 743(b)(2) of this title or subsection (c)(2)(B) of

this section where such offer is made for the continuation of the

service beyond the period required by such agreement or lease,

except that such services shall not be eligible for assistance

under section 17(a)(2) (!4) of the Federal Transit Act (49 U.S.C.

1613(a)(2)),

the Corporation (or a profitable railroad) shall continue to

provide such service after the end of such period, except as

otherwise provided in this subsection.

(5)(A) The Secretary shall reimburse the Corporation (or a

profitable railroad) for any loss which is incurred by it during

the 180-day mandatory operation period specified in paragraph (1)

of this subsection which is not compensated for by a State (or a

local or regional transportation authority). The amount of such

reimbursement shall be determined pursuant to section 17(a)(1) (!4)

of the Federal Transit Act.

(B) The Secretary shall reimburse States, local public bodies,

and agencies thereof for additional costs incurred by such States,

bodies, and agencies for rail service continuation payments for

rail passenger service pursuant to section 17(a)(2) (!4) of the

Federal Transit Act.

(C) For purposes of the obligation of the Secretary to reimburse

the Corporation (or a profitable railroad) or States, local public

bodies, and agencies thereof under subparagraphs (A) and (B) of

this paragraph, the level of rail passenger service shall be

determined on the basis of train miles, car miles, or some other

appropriate indicia of scheduled train movements. Programs to

correct deferred maintenance on rolling stock, right-of-way, and

other facilities which are designed to maintain service, meet

on-time performance, and maintain a reasonable degree of passenger

comfort (and costs incurred incident thereto) shall be included

within the meaning of the term "loss" as used in subparagraph (A)

of this paragraph and within the meaning of the term "additional

costs" as used in subparagraph (B) of this paragraph and section

17(a)(2) (!4) of the Federal Transit Act (49 U.S.C. 1613(a)(2)).

(D) If a dispute arises with respect to the application of any

such regulations, the parties to such dispute may submit such

dispute to arbitration by a third party. If the parties are unable

to agree upon the selection of an arbitrator, the Chairman of the

Commission shall serve in that capacity (except as to matters

required to be decided by the Commission, pursuant to section

562(a) of this title).

(6) Notwithstanding any other provision of this subsection, the

Corporation is not obligated to provide rail passenger service on

rail properties if a State (or a local or regional transportation

authority) contracts for such service to be provided on such

properties by an operator other than the Corporation, except that

the Corporation shall, where appropriate, provide such operator

with access to such properties for such purpose.

(7)(A) If a State (or a local or regional transportation

authority) in the region offers to provide payment for the

provision of additional rail passenger service, the Corporation

shall undertake to provide such service pursuant to this subsection

(including the discontinuance provisions of paragraph (2) of this

subsection). An offer to provide payment for the provision of

additional rail passenger service shall be made in accordance with

subsection (c)(2)(A) of this section, and shall be designed to

avoid any additional costs to the Corporation arising from the

construction or modification of capital facilities or from any

additional operating delays or costs arising from the absence of

such construction or modification. The State (or local or regional

transportation authority) shall demonstrate that it has acquired,

leased, or otherwise obtained access to all rail properties, other

than those designated for conveyance to the National Railroad

Passenger Corporation pursuant to sections 716(c)(1)(C) and

716(c)(1)(D) of this title and to the Corporation pursuant to

section 743(b)(1) of this title, necessary to provide the

additional rail passenger service and that it has completed, or

will complete prior to the inception of the additional rail

service, all capital improvements necessary to avoid significant

costs which cannot be avoided by improved scheduling or other means

on other existing rail services (including rail freight service)

and to assure that the additional service will not detract from the

level and quality of existing rail passenger and freight service.

(B) As used in this paragraph, the term "additional rail

passenger service" means rail passenger service (other than rail

passenger service provided pursuant to the provisions of paragraphs

(2) and (4) of this subsection), including extended or expanded

service and modified routings, which is to be provided over rail

properties conveyed to the Corporation pursuant to section

743(b)(1) of this title, or over (i) rail properties contiguous

thereto conveyed to the National Railroad Passenger Corporation

pursuant to this chapter, or (ii) any other rail properties

contiguous thereto to which a State (or local or regional

transportation authority) has obtained access.

(C) Notwithstanding any other provision of this paragraph, the

Corporation shall not be required to operate additional rail

passenger service over rail properties leased or acquired from or

owned or leased by a profitable railroad in the region.

(8) The Secretary shall, in consultation with the Association,

conduct a study to determine the best means of compensating the

Corporation for liabilities which it may incur for damages to

persons or property, resulting from the operation of rail passenger

service required to be operated pursuant to this subsection or

section 743(b)(2) of this title, which are not underwritten by

private insurance carriers or are not indemnified by a State (or

local or regional transportation authority). Such study shall

identify the nature of the risks to the Corporation, the probable

degree of uninsurability of such risks, and the desirability and

feasibility of various indemnification programs, including subsidy

offers made pursuant to this section, self-insurance through a

passenger tax or other mechanism, or government indemnification for

such liabilities. Within one year after November 8, 1978, the

Secretary shall prepare a report with appropriate recommendations

and shall submit such report to the Congress. Such report shall

specify the most appropriate means of indemnifying the Corporation

for such liabilities in a manner which shall prevent the

cross-subsidization of passenger services with revenues from

freight services operated by the Corporation.

(f) Purchase

If an offer to purchase is made under subsection (c)(2)(C) of

this section, such offer shall be accompanied by an offer of a rail

service continuation payment. Such payment shall continue until the

purchase transaction is completed, unless a railroad assumes

operations over such rail properties of its own account pursuant to

an order or authorization of the Commission. Whenever a railroad in

reorganization in the region or a profitable railroad gives notice

of intent to discontinue service pursuant to subsection (a) of this

section, such railroad shall, upon the request of anyone apparently

qualified to make an offer to purchase or to provide a rail service

continuation payment, promptly make available its most recent

reports on the physical condition of such property, together with

such traffic and revenue data as would be required under subpart B

of part 1121 of chapter X of title 49 of the Code of Federal

Regulations and such other data as are necessary to ascertain the

avoidable costs of providing service over such rail properties.

(g) Abandonment by Corporation

After the rail system to be operated by the Corporation or a

subsidiary thereof under the final system plan has been in

operation for 2 years, the Commission may authorize the Corporation

or a subsidiary thereof to abandon any rail properties as to which

it determines that rail service over such properties is not

required by the public convenience and necessity, if the

Corporation or a subsidiary thereof can demonstrate that no State

(or local or regional transportation authority) is willing to offer

a rail service continuation payment pursuant to subsection (c) of

this section. The Commission may, at any time after the effective

date of the final system plan, authorize additional rail service in

the region or authorize the abandonment of rail properties which

are not being operated by the Corporation or any subsidiary or

affiliate thereof or by any other person. Determinations by the

Commission under this subsection shall be made pursuant to

applicable provisions of part A of subtitle IV of title 49.

(h) Interim abandonment

After February 5, 1976, and prior to the date of conveyance

(pursuant to section 743(b)(1) of this title), no railroad in

reorganization in the region may discontinue service or abandon any

line of railroad other than in accordance with the provisions of

this chapter, unless (1) it is authorized to do so by the

Association, and (2) no affected State (or local or regional

transportation authority) reasonably opposes such action,

notwithstanding any provision of any other Federal law, the

constitution or law of any State, or the decision or order of, or

the pendency of any proceeding before any Federal or State court,

agency, or authority.

(i) Disposition of designated rail properties

No railroad in reorganization in the region and no person leased,

operated or controlled by such a railroad shall sell, transfer,

encumber, or otherwise dispose of rail property, or any right or

interest therein, designated for transfer to the Corporation or

conveyance to a profitable railroad in the final system plan,

except pursuant to section 743(b) of this title. The provisions of

this subsection shall not apply to any such sale, transfer,

encumbrance, or other disposition -

(1) as to which the Association generally or specifically

consents in writing;

(2) which, prior to February 5, 1976, had been specifically

approved by a United States district court having jurisdiction

over the reorganization of a railroad in reorganization under

section 77 of the Bankruptcy Act; or

(3) following certification to the special court, pursuant to

section 719(c) of this title, of any such rail properties not

previously so certified.

-SOURCE-

(Pub. L. 93-236, title III, Sec. 304, Jan. 2, 1974, 87 Stat. 1008;

Pub. L. 94-210, title VI, Sec. 607(i), title VIII, Sec. 804, Feb.

5, 1976, 90 Stat. 97, 133; Pub. L. 94-555, title II, Secs. 205,

206, Oct. 19, 1976, 90 Stat. 2620, 2621; Pub. L. 95-473, Sec. 4(b),

Oct. 17, 1978, 92 Stat. 1466; Pub. L. 95-607, title II, Sec. 201,

Nov. 8, 1978, 92 Stat. 3064; Pub. L. 97-449, Sec. 4(b)(2), Jan. 12,

1983, 96 Stat. 2441; Pub. L. 102-240, title III, Sec. 3003(b), Dec.

18, 1991, 105 Stat. 2088; Pub. L. 104-88, title III, Sec. 327(3),

Dec. 29, 1995, 109 Stat. 951; Pub. L. 104-287, Sec. 6(f)(4)(A),

Oct. 11, 1996, 110 Stat. 3399.)

-REFTEXT-

REFERENCES IN TEXT

Section 10362(b)(6) of title 49, referred to in subsecs.

(a)(2)(B) and (d)(2), was omitted in the general amendment of

subtitle IV of Title 49, Transportation, by Pub. L. 104-88, title

I, Sec. 102(a), Dec. 29, 1995, 109 Stat. 804. Previously, in

subsec. (d)(2), "section 10362(b)(6) of title 49" was substituted

for "section 205(d)(6) of this Act", meaning section 205(d)(6) of

Pub. L. 93-236, on authority of Pub. L. 95-473, Sec. 3(b), Oct. 17,

1978, 92 Stat. 1466, the first section of which enacted subtitle IV

of Title 49.

Section 762 of this title, referred to in subsec. (d)(4)(B), was

repealed by Pub. L. 94-210, title VIII, Sec. 806, Feb. 5, 1976, 90

Stat. 143, eff. Apr. 1, 1978.

Section 17 of the Federal Transit Act, referred to in subsecs.

(d)(4)(B) and (e)(4)(C), (5)(A) to (C), which was classified to

section 1613 of former Title 49, Transportation, was repealed by

Pub. L. 103-272, Sec. 7(b), July 5, 1994, 108 Stat. 1379.

Section 77 of the Bankruptcy Act, referred to in subsec. (i)(2),

was classified to section 205 of former Title 11, Bankruptcy. The

Bankruptcy Act (act July 1, 1898, ch. 541, 30 Stat. 544, as

amended) was repealed effective Oct. 1, 1979, by Pub. L. 95-598,

Secs. 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of

which enacted revised Title 11. For current provisions relating to

railroad reorganization, see subchapter IV (Sec. 1161 et seq.) of

chapter 11 of Title 11.

-MISC1-

AMENDMENTS

1996 - Subsec. (b)(3). Pub. L. 104-287 made technical amendment

to directory language of Pub. L. 104-88, Sec. 327(3)(B). See 1995

Amendment note below.

1995 - Subsec. (a)(2)(B). Pub. L. 104-88, Sec. 327(3)(A),

substituted "section 10362(b)(6) of title 49" for "section

205(d)(6) of this Act".

Subsec. (b)(3). Pub. L. 104-88, Sec. 327(3)(B), as amended by

Pub. L. 104-287, substituted "part A of subtitle IV of title 49"

for "the Interstate Commerce Act".

Subsec. (d)(3). Pub. L. 104-88, Sec. 327(3)(C), substituted "this

title, the Commission" for "this title, the Commission - ", struck

out "(A)" before "shall take such action", and substituted "under

this subsection." for "under this subsection; and

"(B) shall have authority, in accordance with the provisions of

section 1(16)(b) of the Interstate Commerce Act (49 U.S.C.

1(16)(b)), to direct rail service to be provided by any

designated railroad or by the trustees of a railroad in

reorganization in the region, if a rail service continuation

payment has been offered but an applicable operating or lease

agreement is not in effect.

For purposes of the preceding sentence, any compensation required

as a result of such directed service shall be determined in

accordance with the standards developed pursuant to section

205(d)(6) of this Act."

Subsec. (e)(4)(A). Pub. L. 104-88, Sec. 327(3)(D)(i), struck out

"and under regulations issued by the Office pursuant to section

205(d)(5) of this Act" before ", for the operation".

Subsec. (e)(4)(C). Pub. L. 104-88, Sec. 327(3)(D)(ii), struck out

"and regulations issued by the Office pursuant to section 205(d)(5)

of this Act" after "subsection (c)(2)(A) of this section".

Subsec. (e)(5)(A), (B). Pub. L. 104-88, Sec. 327(3)(E), struck

out before period at end "and under regulations issued by the

Office pursuant to section 205(d)(5) of this Act".

Subsec. (e)(7)(A). Pub. L. 104-88, Sec. 327(3)(F), struck out

"and under regulations issued by the Office pursuant to section

205(d)(5) of this Act" after "subsection (c)(2)(A) of this

section".

Subsec. (g). Pub. L. 104-88, Sec. 327(3)(G), substituted "part A

of subtitle IV of title 49" for "the Interstate Commerce Act".

1991 - Subsecs. (d)(4)(B), (e)(4)(C), (5)(A) to (C). Pub. L.

102-240 substituted "Federal Transit Act" for "Urban Mass

Transportation Act of 1964".

1983 - Subsec. (j). Pub. L. 97-449 repealed section 304(j) of

Pub. L. 93-236, effective Oct. 17, 1978, the date Pub. L. 95-473

repealed subsec. (j) by repealing section 804 "Sec. 304(j)" of Pub.

L. 94-210. See 1978 Amendment note below.

1978 - Subsec. (e). Pub. L. 95-607 added subpar. (C) of par. (4)

and pars. (7) and (8).

Subsec. (j). Pub. L. 95-473 struck out subsec. (j) which provided

for exempt rail mass transportation not under the jurisdiction of

the Interstate Commerce Commission.

1976 - Subsec. (a). Pub. L. 94-210, Sec. 804, redesignated

existing provisions as par. (1) and inserted provision relating to

applicability to a railroad in reorganization in the region, or of

a person leased, operated, or controlled by such a railroad, in

subpar. (B) inserted provision relating to notice on the date of

any conveyance ordered by the special court, and in subpar. (C)

inserted requirement that notice be sent to the Commission and

substituted reference to the chief executive officer for reference

to the Governor, and added par. (2).

Subsec. (b). Pub. L. 94-210, Sec. 804, in par. (1) inserted

exception of subsecs. (c) and (f) of this section and substituted

provisions requiring notice to be sent to any person (including a

government entity), for provisions requiring notice to be sent to

all those required to receive notice, in par. (2) substituted "240"

for "180", and added par. (3).

Subsec. (c). Pub. L. 94-210, Sec. 804, substituted provisions

relating to continuation of rail services and applicability of rail

service continuation payments to such continuation, for provisions

relating to limitations of Interstate Commerce Act, State

constitution or law, or decision of Federal or State court or

agency on power to discontinue rail service and abandon rail

properties and applicability of rail service continuation subsidies

on such power.

Subsec. (d). Pub. L. 94-210, Sec. 804, added subsec. (d). Former

subsec. (d) redesignated (f) and amended.

Subsec. (d)(4). Pub. L. 94-555, Sec. 205(a), added par. (4).

Subsec. (e). Pub. L. 94-210, Secs. 607(i), 804, added subsec.

(e). Former subsec. (e) redesignated (g) and amended.

Subsec. (e)(5)(D). Pub. L. 94-555, Sec. 205(b), redesignated

former subpar. (C) as (D) and added subpar. (C).

Subsec. (f). Pub. L. 94-210, Sec. 804, redesignated former

subsec. (d) as (f) and substituted provisions relating to rail

service continuation payments, for provisions relating to rail

service continuation subsidies. Former subsec. (f) redesignated (h)

and amended.

Subsec. (g). Pub. L. 94-210, Sec. 804, redesignated former

subsec. (e) as (g) and inserted reference to any subsidiary of a

Corporation and provision relating to demonstration by the

Corporation, etc., that no State (or local or regional

transportation authority) will offer a continuation payment under

subsec. (c) of this section.

Subsec. (h). Pub. L. 94-210, Sec. 804, redesignated former

subsec. (f) as (h), substituted "February 5, 1976, and prior to the

date of conveyance (pursuant to section 743(b)(1) of this title)"

for "January 2, 1974" and "reorganization in the region may" for

"reorganization may", and made minor changes in structure.

Subsecs. (i), (j). Pub. L. 94-210, Sec. 804, added subsecs. (i)

and (j).

Subsec. (j)(1). Pub. L. 94-555, Sec. 206(1), inserted limitation

"by rail" to mass transportation services, and provided that any

local body providing mass transportation services by rail is

exempted from the rules, regulations, and orders promulgated under

the Interstate Commerce Act, if interstate fares or application to

the Interstate Commerce Commission for a change in such fares is

subject to the approval or disapproval of the Governor of any state

in which it provides services.

Subsec. (j)(2)(B). Pub. L. 94-555, Sec. 206(2), substituted

definition of "mass transportation services" for "mass

transportation".

EFFECTIVE DATE OF 1996 AMENDMENT

Section 6(f)(4)(A) of Pub. L. 104-287 provided that the amendment

made by that section is effective Dec. 29, 1995.

EFFECTIVE DATE OF 1995 AMENDMENT

Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2

of Pub. L. 104-88, set out as an Effective Date note under section

701 of Title 49, Transportation.

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-555 effective Oct. 1, 1976, see section

303 of Pub. L. 94-555, set out as a note under section 702 of this

title.

-TRANS-

ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGANIZATION ACT OF

1973, AND TRANSFER OF FUNCTIONS

Special court abolished and all jurisdiction and functions

transferred to United States District Court for District of

Columbia, see section 719(b)(2) of this title.

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 719, 741, 742 of this

title.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) See References in Text note below.

(!3) So in original. Probably should be "this".

(!4) See References in Text note below.

-End-

-CITE-

45 USC Sec. 744a 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-HEAD-

Sec. 744a. End of Conrail commuter service obligation

-STATUTE-

Notwithstanding any other provision of law or contract, Conrail

shall be relieved of any legal obligation to operate commuter

service on January 1, 1983.

-SOURCE-

(Pub. L. 97-35, title XI, Sec. 1136, Aug. 13, 1981, 95 Stat. 647.)

-COD-

CODIFICATION

Section was enacted as part of the Omnibus Budget Reconciliation

Act of 1981 and also as part of the Northeast Rail Service Act of

1981, and not as part of the Regional Rail Reorganization Act of

1973 which comprises this chapter.

-MISC1-

EFFECTIVE DATE

Section effective Aug. 13, 1981, see section 1169 of Pub. L.

97-35, set out as a note under section 1101 of this title.

AUTHORIZATION OF APPROPRIATION TO FACILITATE TRANSFER OF RAIL

COMMUTER SERVICE FROM CONRAIL TO OTHER OPERATORS; STANDARDS FOR

DISTRIBUTION OF APPROPRIATED FUNDS

Section 1139(b) of Pub. L. 97-35, as amended by Pub. L. 97-468,

title V, Sec. 504(a), Jan. 14, 1983, 96 Stat. 2552, provided that:

"(1) There are authorized to be appropriated to the Secretary not

to exceed $50,000,000, to facilitate the transfer of rail commuter

services from Conrail to other operators. The Secretary shall by

regulation prescribe standards for the obligation of such funds,

and shall ensure that distribution of such funds is equitably made

between Amtrak Commuter and the commuter authorities that operate

commuter service. In providing for the distribution of such funds,

the Secretary shall consider any particular adverse financial

impact upon any commuter authority that results from the

termination of any lease or agreement between such commuter

authority and Conrail. Amounts appropriated under this section are

authorized to remain available until October 1, 1986.

"(2) Any funds appropriated under the authority of this

subsection shall be distributed by the Secretary to Amtrak Commuter

and commuter authorities according to the statutory provisions of

paragraph (1) of this subsection within 60 days after receipt of an

application by Amtrak Commuter or such commuter authorities or

within 60 days after the date of enactment of the Rail Safety and

Service Improvement Act of 1982 [Jan. 14, 1983], whichever is

later."

-End-

-CITE-

45 USC Sec. 745 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-HEAD-

Sec. 745. Continuing reorganization; supplemental transactions

-STATUTE-

(a) Proposals

If the Secretary or the Association determines that, as part of

continuing reorganization, further restructuring of rail properties

in the region through transactions supplemental to the final system

plan would promote the establishment and retention of a financially

self-sustaining rail service system in the region adequate to meet

the needs of the region, the Secretary or the Association, as the

case may be, may develop proposals for such supplemental

transactions as are necessary or appropriate to implement the

needed restructuring. Transfers of rail properties included in

proposals developed by the Association shall be limited to (1) rail

properties which would have qualified for designation under section

716(c)(1)(A) of this title but which were not transferred or

conveyed under the final system plan, and which the Association

finds to be essential to the efficient operations of the

Corporation, and (2) transfers, consistent with the final system

plan, of rail properties from the Corporation to a subsidiary

thereof. Each proposal (other than a proposal developed by the

Association) shall be submitted in writing to the Association and

shall state and describe any transactions proposed, the rail

properties involved, the parties to such transactions, the

financial and other terms of such transactions, the purposes of the

chapter or the goals of the final system plan intended to be

effectuated by such transactions, and such other information

incidental thereto as the Association may prescribe. Within 10 days

after receipt of a proposal developed by the Secretary, and upon

the development of a proposal developed by the Association, the

Association shall publish a summary of such proposal in the Federal

Register, and shall afford interested persons (including the

Corporation when property is to be transferred to or from the

Corporation) an opportunity to comment thereon.

(b) Evaluation by Association

The Association shall analyze each proposal containing one or

more supplemental transactions, taking into account the comments of

interested persons and statements and exhibits submitted at any

public hearings which may have been held. The Association shall,

within 120 days after the publication of a summary thereof under

subsection (a) of this section, publish in the Federal Register a

report evaluating such proposal. Such evaluation shall state

whether the supplemental transactions contained in such proposal,

considered in their entirety, are (1) in the public interest and

consistent with the purposes of this chapter and the goals of the

final system plan, and (2) fair and equitable. If the Corporation

opposes, or seeks modification of, any such proposed transfer, its

written comments shall be given due consideration by the

Association and shall be published as part of the evaluation.

Within 30 days after the Association publishes its report, each

proposed transferor or transferee shall notify the Association in

writing as to whether any proposed supplemental transaction

requiring the transfer of any property from or to such transferor

or transferee is acceptable to such proposed transferor or

transferee. If any such proposed transferor (other than the

Corporation) or transferee fails to notify the Association that any

proposed supplemental transaction requiring the transfer of any

property from such transferor or to such transferee is acceptable

to it, no further administrative or judicial proceedings shall be

conducted with respect to such proposed supplemental transaction.

(c) Review by Commission

Within 90 days after the publication in the Federal Register of

each report referred to in subsection (b) of this section, the

Commission shall determine whether the supplemental transactions

referred to in the report, considered in their entirety, would be

in the public interest and consistent with the purposes of this

chapter and the goals of the final system plan. In making such

determination, the Commission shall give due consideration to the

views received by it, within 30 days after the publication of the

applicable report, from the Corporation and the Secretary. The

Commission may condition its approval of such supplemental

transactions on such reasonable terms and conditions as it may deem

necessary in the public interest. The approval by the Commission of

such supplemental transactions shall not be a prerequisite to the

consummation of such transactions, but any determination of the

Commission modifying, approving, or disapproving any proposed

supplemental transactions shall be given due weight and

consideration by the special court in the proceedings prescribed in

subsection (d) of this section. If the Commission fails to act

within the time period provided in this subsection, the

supplemental transactions involved shall be deemed to have been

approved by the Commission. The Commission may prescribe such

regulations as may be necessary for the administration of this

section.

(d) Special court proceedings

(1) If the Association has made the determination pursuant to

subsection (b) of this section that a proposal for supplemental

transactions is in the public interest and consistent with the

purposes of this chapter and the goals of the final system plan,

and is fair and equitable, the Association shall, within 40 days

after the date of the Commission's determination under subsection

(c) of this section, or after the expiration of the 90-day period

referred to in such subsection (c) of this section, whichever is

applicable, petition the special court for an order of such court

finding that such proposal for supplemental transactions is in the

public interest and consistent with the purposes of this chapter

and the goals of the final system plan, and is fair and equitable,

and directing the Corporation to carry out the supplemental

transactions specified in such proposal. If the Association has

determined, pursuant to subsection (b) of this section that a

proposal made by the Secretary is not in the public interest or is

not consistent with the purposes of this chapter and the goals of

the final system plan or is not fair and equitable, the Secretary

may, if he determines that such proposal is in the public interest

and consistent with the purposes of this chapter and the goals of

the final system plan and is fair and equitable, petition the

special court for an order of such court finding that such proposal

for supplemental transactions is in the public interest and

consistent with the purposes of this chapter and the goals of the

final system plan and is fair and equitable, and directing the

Corporation to carry out any supplemental transactions specified in

such proposal. Such a petition shall be submitted to the special

court within 90 days after the date of the Commission's

determination under such subsection (c) of this section, or after

the expiration of the 90-day period referred to in such subsection

(c) of this section, whichever is applicable.

(2) After the filing of a petition under paragraph (1) of this

subsection, the special court shall decide, after a hearing,

whether the proposed supplemental transactions contained in such

petition, considered in their entirety, are in the public interest

and consistent with the purposes of this chapter and the goals of

the final system plan and are fair and equitable. If the special

court determines that such proposed supplemental transactions,

considered in their entirety, are in the public interest and

consistent with the purposes of this chapter and the goals of the

final system plan and are fair and equitable, it shall, upon making

such determination, issue such orders as may be necessary to direct

the Corporation to consummate the transactions. If the special

court determines that such proposed supplemental transactions,

considered in their entirety, are not in the public interest or not

consistent with the purposes of this chapter and the goals of the

final system plan, or are not fair and equitable, it shall file an

opinion stating its conclusion and the reasons therefor. In such

event the Association (in the case of a proposal developed by the

Association) or the Secretary (in the case of a proposal developed

by the Secretary) may, within 120 days after the filing of such

opinion, certify to the special court that the terms and conditions

of the proposal have been modified consistent with the opinion of

the court and are acceptable to each proposed transferor (other

than the Corporation) or transferee, and may petition the special

court for reconsideration of the proposal as so modified. After the

filing of such petition, the special court shall decide, after a

hearing, whether the proposal as modified by the certification is

in the public interest and consistent with the purposes of this

chapter and the goals of the final system plan and is fair and

equitable, and shall enter such further orders as are consistent

with its determination.

(3) The Corporation is authorized to petition the special court

and to be represented regarding any proposed supplemental

transaction, contained in a proposal developed by either the

Association or the Secretary, which involves the properties of the

Corporation.

(4) In proceedings under this subsection, the special court is

authorized to exercise the powers of a reorganization court.

(5) Any evaluation by the Association, the Secretary, or the

Commission shall not be reviewable in any court except the special

court in accordance with the provisions of this section. The

supplemental transactions shall not be restrained or enjoined by

any court nor shall they be otherwise reviewable by any court other

than by the special court to the extent provided in this section.

(6) Notwithstanding any other provision of this chapter, no

findings, determinations, or proceedings shall be required with

respect to any proposal for supplemental transactions other than as

expressly set forth in this section.

(7) Repealed. Pub. L. 97-35, title XI, Sec. 1155(b), Aug. 13,

1981, 95 Stat. 679.

(8) A final order or judgment of the special court entering or

denying an order pursuant to this subsection shall be reviewable in

the same manner as provided in section 719(e)(3) of this title.

(e) "Fair and equitable" defined

As used in this section, the term "fair and equitable" means fair

and equitable, in accordance with the standards applicable to the

approval of a plan of reorganization (or a step in such plan) under

section 77 of the Bankruptcy Act (!1) to -

(1) the estates of railroads in reorganization in the region

and persons leased, operated, or controlled by such railroads who

have conveyed rail properties, under section 743(b)(1) of this

title, in exchange for securities of the Corporation, the

Association, or profitable railroads and other benefits provided

as a consequence of this chapter and to any subsequent holders of

such securities at the time of the supplemental transaction

involved; and

(2) the holders of other securities of the Corporation.

Whenever any property or securities of the Corporation are required

to be valued in order to determine whether the terms of a

supplemental transaction are fair and equitable, the special court

shall give proper recognition to the contributions to the

Corporation by all classes of security holders, except that such

court shall not assign to the series B preferred stock or the

common stock of the Corporation any values added to those

securities, by reason of investment by the Association in

debentures and series A preferred stock of the Corporation, in

excess of any value required by constitutional principles

applicable to a reorganization process.

(f) Expedited proposals

(1) Within 240 days after the effective date of the Staggers Rail

Act of 1980, the Secretary, after providing an opportunity for

comments from interested parties, shall determine whether to

initiate a proposal for a supplemental transaction under this

section for the transfer of all rail properties of the Corporation

in the States of Connecticut and Rhode Island to another railroad

in the region. If the Secretary determines that -

(A) the proposed transferee railroad is financially and

operationally capable of assuming the freight operations and

freight service obligations of the Corporation on a financially

self-sustaining basis;

(B) the proposed transfer would promote the establishment and

retention of a financially self-sustaining rail system in the

States of Connecticut and Rhode Island adequate to meet the needs

of such States; and

(C) the proposed transfer is consistent with the goals set

forth in section 716(a)(8) of this title,

the Secretary shall develop such a proposal and may, after

providing the Association, the Commission, and the States of

Connecticut and Rhode Island an opportunity to review and comment

on such proposal, petition the special court for an order to carry

out such proposal.

(2)(A) Within 10 days after August 13, 1981, the Secretary shall

initiate discussions and negotiations for the transfer of some or

all of the Corporation's rail properties and freight service

obligations in the States of Connecticut and Rhode Island to one or

more parties under a plan which provides for continued rail freight

service on all lines operated by the Corporation on August 13,

1981, for at least four years.

(B) Within 120 days after August 13, 1981, the Secretary shall

petition the special court for an order to transfer all of the

Corporation's rail properties and freight service obligations in

the States of Connecticut and Rhode Island to one or more railroads

in the Region -

(i) which have under subparagraph (A) of this paragraph

completed negotiations and submitted to the Secretary a proposal

to assume all of the freight operations and freight service

obligations of the Corporation in such States on a financially

self-sustaining basis for a period of at least four years; or

(ii) which have developed a proposal to assume all of the

freight operations and freight service obligations of the

Corporation in such States under an agreement by and between the

Corporation and such railroad or railroads; or

(iii) which have, prior to May 1, 1981, submitted a proposal to

the Secretary for such a transfer.

For the purpose of this section, an order to transfer may include

the Corporation if the Corporation agrees to maintain service over

lines retained by the Corporation for four years.

(C) To permit efficient and effective rail operations consistent

with the public interest, as a part of any transfer under paragraph

(2)(B) of this subsection, the Secretary shall promote the transfer

of additional non-mainline Corporation properties in adjoining

States that connect with properties that are the subject of such

transfer.

(D) The special court shall determine a fair and equitable price

for the rail properties to be transferred under this subsection,

and shall, unless the parties otherwise agree, establish divisions

of joint rates for through routes over such properties which are

fair and equitable to the parties. The special court shall

establish a method to ensure that such divisions are promptly paid.

(E) Notwithstanding any other provision of law or agreement in

effect on May 1, 1981, the special court shall require that the

railroad or railroads to which properties are to be transferred

under this subsection assume all charges payable by the Corporation

to Amtrak for the carriage of property by rail over those portions

of the Northeast Corridor in Connecticut and Rhode Island. If the

Corporation operates any rail freight service over those portions

of the Northeast Corridor in Connecticut and Rhode Island after the

date of such transfer, the Corporation shall pay Amtrak any

compensation that may be separately agreed upon by the Corporation

and Amtrak, and the railroad or railroads to which properties are

transferred under this subsection shall not be obligated to pay any

compensation owed by the Corporation to Amtrak for such

post-transfer operations by the Corporation.

(3) If the special court determines that a proposal developed

under this subsection is fair and equitable, meets the requirements

of this subsection, and is in the public interest, it shall issue

such orders as may be necessary to carry out such proposal. The

provisions of paragraphs (2)-(6) of subsection (d) of this section

shall apply to the determination of the special court under this

subsection, except that the standards for such determination shall

be those set forth in this paragraph.

(4)(A) Any employee who was protected by the compensatory

provisions of subchapter V (!2) of this chapter immediately prior

to August 13, 1981, and who is deprived of employment as a result

of the transfer of rail properties under this subsection shall be

eligible for benefits under section 797 (!2) of this title.

(B) As used in this paragraph, "employee deprived of employment"

means any employee who is unable to secure employment through the

normal exercise of seniority rights, but does not include any

employee who refuses an offer of employment with a railroad

acquiring properties under this subsection.

(g) Transfer of properties and freight service obligations of

specific lines

(1) Within 20 days after August 13, 1981, the Secretary shall

initiate discussions and negotiations for the expedited transfer of

all properties and freight service obligations of the Corporation

with respect to the following lines: Canaan, Connecticut, to

Pittsfield, Massachusetts; North Adams Junction, Massachusetts, to

North Adams, Massachusetts; Hazardville, Connecticut, to

Springfield, Massachusetts; Westfield, Massachusetts, to

Easthampton, Massachusetts; Westfield, Massachusetts, to Holyoke,

Massachusetts.

(2) Within 120 days after August 13, 1981, the Secretary shall

transfer, provided a qualified purchaser offers to purchase, the

Corporation's properties and freight service obligations described

in paragraph (1) of this subsection to another railroad or

railroads in the Region which are determined by the Secretary to be

qualified. A qualified purchaser is defined as a railroad

financially self-sustaining which guarantees continuous service for

at least four years.

(3) The Secretary shall determine a fair and equitable price for

the rail properties to be transferred under this subsection, and

shall, unless the parties otherwise agree, establish divisions of

joint rates for through routes over such properties which are fair

and equitable to the parties.

(4) The Secretary shall determine fair and equitable terms for

the provision of such trackage rights, on segments of the

Corporation's lines not to exceed 5 miles per line transferred, to

acquiring carriers as may be necessary to operate such transferred

lines in an efficient manner.

-SOURCE-

(Pub. L. 93-236, title III, Sec. 305, as added Pub. L. 94-210,

title VI, Sec. 610(b), Feb. 5, 1976, 90 Stat. 100; amended Pub. L.

96-448, title VI, Sec. 601(a), Oct. 14, 1980, 94 Stat. 1958; Pub.

L. 97-35, title XI, Sec. 1155, Aug. 13, 1981, 95 Stat. 677; Pub. L.

98-620, title IV, Sec. 402(48), Nov. 8, 1984, 98 Stat. 3360; Pub.

L. 104-317, title VI, Sec. 605(c)(2), Oct. 19, 1996, 110 Stat.

3859.)

-REFTEXT-

REFERENCES IN TEXT

Section 77 of the Bankruptcy Act, referred to in subsec. (e), was

classified to section 205 of former Title 11, Bankruptcy. The

Bankruptcy Act (act July 1, 1898, ch. 541, 30 Stat. 544, as

amended) was repealed effective Oct. 1, 1979, by Pub. L. 95-598,

Secs. 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of

which enacted revised Title 11. For current provisions relating to

railroad reorganization, see subchapter IV (Sec. 1161 et seq.) of

chapter 11 of Title 11.

The effective date of the Staggers Rail Act of 1980, referred to

in subsec. (f)(1), probably means Oct. 1, 1980, the effective date

of section 601(a) of Pub. L. 96-448, which enacted subsec. (f) of

this section. See section 710 of Pub. L. 96-448, set out as an

Effective Date of 1980 Amendment note under section 1170 of Title

11.

Subchapter V of this chapter, referred to in subsec. (f)(4)(A),

was repealed by Pub. L. 97-35, title XI, Sec. 1144(a)(1), Aug. 13,

1981, 95 Stat. 669.

Section 797 of this title, referred to in subsec. (f)(4)(A), was

repealed by Pub. L. 99-509, title IV, Sec. 4024(c), Oct. 21, 1986,

100 Stat. 1904, effective on the sale date (Apr. 2, 1987).

-MISC1-

AMENDMENTS

1996 - Subsec. (d)(4). Pub. L. 104-317, which directed amendment

of par. (4) by striking out "a judge of the United States district

court with respect to such proceedings and such powers shall

include those of", was executed by striking out text which

contained the words "judge of a United States" rather than "judge

of the United States" to reflect the probable intent of Congress.

1984 - Subsec. (d)(2). Pub. L. 98-620 substituted "After" for

"Within 180 days after" at beginning of first and last sentences.

1981 - Subsec. (d)(7). Pub. L. 97-35, Sec. 1155(b), struck out

par. (7) which related to applicable requirements to supplemental

transactions.

Subsec. (f). Pub. L. 97-35, Sec. 1155(a), in par. (2) substituted

provisions relating to discussions and negotiations, judicial

procedures applicable, etc., for transfers, for provisions relating

to establishment of a fair and equitable price for properties, and

in par. (4) substituted provisions relating to eligibility for

benefits of employees deprived of employment, for provisions

relating to expedited supplemental transactions.

Subsec. (g). Pub. L. 97-35, Sec. 1155(c), added subsec. (g).

1980 - Subsec. (f). Pub. L. 96-448 added subsec. (f).

EFFECTIVE DATE OF 1996 AMENDMENT

Amendment by Pub. L. 104-317 effective 90 days after Oct. 19,

1996, and except as otherwise provided, applicable to proceedings

that arise or continue after such effective date, see section

605(e) of Pub. L. 104-317, set out as a note under section 719 of

this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-620 not applicable to cases pending on

Nov. 8, 1984, see section 403 of Pub. L. 98-620, set out as a note

under section 1657 of Title 28, Judiciary and Judicial Procedure.

EFFECTIVE DATE OF 1981 AMENDMENT

Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section

1169 of Pub. L. 97-35, set out as an Effective Date note under

section 1101 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-448 effective Oct. 1, 1980, see section

710(a) of Pub. L. 96-448, set out as a note under section 1170 of

Title 11, Bankruptcy.

-TRANS-

ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGANIZATION ACT OF

1973, AND TRANSFER OF FUNCTIONS

Special court abolished and all jurisdiction and functions

transferred to United States District Court for District of

Columbia, see section 719(b)(2) of this title.

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

RAIL ABANDONMENT AND DISCONTINUANCE OF SERVICE REPORT

Section 904 of Pub. L. 94-210 directed Secretary to submit to

Congress, within ninety days of Feb. 5, 1976, a report on

anticipated effect of any abandonment of lines of railroad and any

discontinuances of rail service in States outside the region as

defined in section 702 of this title, prior to repeal by Pub. L.

103-272, Sec. 7(b), July 5, 1994, 108 Stat. 1379.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 702, 719, 741, 743 of

this title.

-FOOTNOTE-

(!1) See References in Text note below.

(!2) See References in Text note below.

-End-

-CITE-

45 USC Sec. 746 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-HEAD-

Sec. 746. Certificates of value

-STATUTE-

(a) General

On the date when the Corporation is required to deposit

securities with the special court pursuant to section 743(a)(1) of

this title, the Association shall deposit with the special court

the certificates of value of the Association required by this

section. The Secretary shall guarantee the payment of all

certificates of value delivered in accordance with this subchapter.

All guarantees entered by the Secretary under this section shall

constitute general obligations of the United States of America for

the payment or redemption of which its full faith and credit are

pledged. Such guarantees shall be valid and incontestable except as

to mutual mistake of fact or as to fraud or material

misrepresentation by the holder of such certificates or the

transferor of rail properties to which certificates of value of any

series so guaranteed are issued.

(b) Number and distribution

A separate series of certificates of value shall be issued to

each railroad in reorganization in the region and each person

leased, operated, or controlled by such a railroad that transfers

rail properties to the Corporation or a subsidiary thereof. The

number of certificates of value of each series to be deposited

pursuant to subsection (a) of this section shall be equal to the

number of shares of series B preferred stock of the Corporation

which are required to be deposited by the Corporation with the

special court, pursuant to section 743(a)(1) of this title in

exchange for the rail properties transferred to the Corporation or

a subsidiary thereof by such transferor. Certificates of value of

the appropriate series shall be distributed by the special court,

pursuant to section 743(c)(4) of this title, at the same time to

the same transferors, and in the same numbers of units as shares of

such series B preferred stock are distributed to such transferor.

(c) Redemption

(1) Certificates of value, of any series, shall be redeemed by

the Association on December 31, 1987, or on such earlier date as

the Board of Directors of the Association and the Finance Committee

jointly may determine and specify.

(2) Each certificate of value of each series shall be redeemable

for an amount, payable in cash, equal to its base value on the

redemption date, minus -

(A) the sum of the fair market value of the series B preferred

stock applicable to such certificate, the fair market value of

the common stock applicable to such certificate, and all cash

dividends theretofore paid on any such series B preferred stock

and on any such common stock; and

(B) any sums paid to a transferor of rail properties to whom

such series of certificates of value was issued resulting from

sales or leases by the Corporation of properties transferred to

it by such transferor divided by the number of certificates of

value distributed to such transferor.

(3) The number of shares of series B preferred stock and common

stock applicable to each certificate of value of any series,

pursuant to paragraph (2) of this subsection, shall be -

(A) one share of series B preferred stock (adjusted to reflect

any stock splits, stock combinations, reclassifications or

similar transactions affecting the number of shares of

outstanding series B preferred stock following the date of

distribution pursuant to section 743(c)(4) of this title); and

(B) the number of shares of common stock determined by dividing

the total number of shares of common stock distributed pursuant

to section 743(c)(4) of this title to the transferor receiving

such series of certificates of value (adjusted to reflect any

stock splits, stock combinations, reclassifications, or similar

transactions affecting the number of shares of outstanding common

stock following the date of distribution pursuant to section

743(c)(4) of this title) by the total number of certificates of

value in the series so distributed to such transferor.

(4) The base value of each certificate of value of any series

shall be the value obtained by (A) taking the net liquidation

value, as determined by the special court, to which the transferor

to whom such series of certificates of value is issued is entitled

by virtue of transfers of rail properties, under section 743(b)(1)

of this title to the Corporation or a subsidiary thereof; (B)

subtracting the value of other benefits provided under this

chapter, as determined by the special court; (C) adding such

amount, if any, as the special court may determine shall be

required after taking into consideration compensable

unconstitutional erosion, if any, in the estate of a railroad in

reorganization, or of a railroad leased, operated, or controlled by

such a railroad, which the special court finds to have occurred

during any bankruptcy proceeding with respect to such railroad; (D)

adding interest from the transfer date to the redemption date to be

compounded annually at a rate of 8 percent per annum; and (E)

dividing the resulting value by the number of certificates of value

of such series distributed to such transferor. In determining such

base value, the special court shall give due weight and

consideration to the finding of the Association as to the net

liquidation value to which each transferor is entitled by virtue of

conveyances of rail properties under section 743(b)(1) of this

title. For purposes of this paragraph, the term "rail properties"

includes all rights with respect to employee benefit plans

transferred and assigned to the Corporation pursuant to section

743(b)(6) of this title. Net liquidation value with respect to such

rights shall be determined after taking into account all

obligations finally transferred or assigned to the Corporation

pursuant to such section.

(5) The fair market value of series B preferred stock and of

common stock of the Corporation shall be determined in accordance

with regulations prescribed by the Association, on the basis of the

average price of each such security in the primary established

market in which such securities are traded over a period of 120

consecutive trading days ending not less than 20 nor more than 40

trading days preceding the redemption date, or, in the case of a

security for which there is not an established trading market, on

the basis of the fair market value thereof as determined by the

majority vote of three experts in the valuation of securities, one

to be selected by the Association, one to be selected by the

directors of the Corporation elected by the holders of the security

to be valued, and one to be selected by the two first selected.

(d) Authorization of appropriations

There are authorized to be appropriated to the Secretary such

sums as are necessary to discharge the obligations of the United

States arising under this section.

-SOURCE-

(Pub. L. 93-236, title III, Sec. 306, as added Pub. L. 94-210,

title VI, Sec. 610(b), Feb. 5, 1976, 90 Stat. 104; amended Pub. L.

94-248, Secs. 2, 3, Mar. 25, 1976, 90 Stat. 286.)

-MISC1-

AMENDMENTS

1976 - Subsec. (c)(3)(A). Pub. L. 94-248, Sec. 2, substituted

"adjusted to reflect" for "without regard to".

Subsec. (c)(3)(B). Pub. L. 94-248, Sec. 3, inserted provisions

relating to adjustment of number of shares of common stock to

reflect any stock splits, stock combinations, etc.

-TRANS-

ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGANIZATION ACT OF

1973, AND TRANSFER OF FUNCTIONS

Special court abolished and all jurisdiction and functions

transferred to United States District Court for District of

Columbia, see section 719(b)(2) of this title.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 712, 719, 720, 743, 1115

of this title.

-End-

-CITE-

45 USC Sec. 747 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-HEAD-

Sec. 747. Protection of Federal funds

-STATUTE-

(a) Audit

(1) The Comptroller General of the United States is authorized to

audit the programs, activities, and financial operations of the

Corporation for any period during which (A) Federal funds provided

pursuant to this chapter are being used to finance any portion of

its operations, or (B) Federal funds have been invested therein

pursuant to this chapter. Any such audit may be conducted under

such rules and regulations as the Comptroller General may

prescribe. The Comptroller General shall report to the Congress at

such times and to such extent as he considers necessary to keep the

Congress informed on the security of such Federal funds and

guarantees and, to the extent appropriate, make recommendations for

achieving greater economy, efficiency, and effectiveness in such

programs, activities, and operations.

(2) For the purpose of any audit conducted pursuant to subsection

(a) of this section, the Comptroller General, or a designated

representative of the Comptroller General, shall have access to and

the right to examine all books, accounts, records, reports, files,

and other papers, items, or property belonging to or in use by the

Corporation.

(b) Report

The Association shall prepare and submit an annual report to

Congress on the performance of the Corporation in order to keep the

Congress informed as to matters which may affect the quality of

rail services in the region and which may affect the security of

Federal funds referred to in subsection (a) of this section. Each

such report shall be submitted within 150 days after the end of the

fiscal year of the Corporation. Each such report shall include an

evaluation of -

(1) the degree to which the goals of section 716(a) of this

title are being met;

(2) the amounts and causes of deviations, if any, from the

financial projections of the final system plan;

(3) the amount of Federal funds made available to the

Corporation and a clear description of the uses of such funds;

(4) the projected financial needs of the Corporation;

(5) the projected sources from which such financial needs are

likely to be met; and

(6) the ability of the Corporation to become financially

self-sustaining without requiring Federal funds in excess of

those authorized by section 716(f) of this title.

(c) Monitoring of Corporation

(1) The Association shall also report to the Congress, in

accordance with this subsection, on the policies of the Corporation

and the results of such policies with respect to operations, cost

containment, and marketing.

(2) Within 90 days after November 1, 1978, the Association shall

(A) subdivide each such policy area into constituent parts or

groups of parts which are specific and significant, (B) identify

the most appropriate indicia to reflect accurately such parts or

groups of parts, and (C)(i) determine any and all deficiencies in

data used to compute the values of such indicia including

consistency and clarity of definitions, timeliness of data entry,

editing and validation of input data, and processing, and (ii)

outline the efforts of the Association and Corporation to correct

the deficiencies and the results of such efforts. On or before the

end of such 90-day period, the Association shall submit to the

Congress such methodological information and additional information

which the Association deems necessary or appropriate to further the

purpose of this subchapter.

(3) Using such indicia, the Association shall report on (A) the

relationship of each constituent part or groups of parts to the

Corporation's revenue and capital and operating expenses, (B) the

extent to which such parts or group of parts contributes to profits

or losses, (C) the efforts of management to contain or reduce the

contribution of such part or group of parts to losses, (D) the

results of such efforts, and (E) such other information as the

Association deems necessary or appropriate.

(4) The Association shall (A) transmit to the Congress the first

such monitoring report pursuant to paragraph (3) at the end of the

first calendar quarter which begins after the end of the 90-day

period for preparation and submission of the methodological

information pursuant to paragraph (2), (B) report such monitoring

information to the Congress at the end of the first quarter of each

calendar year thereafter, (C) update methodological and monitoring

information periodically as the Association deems necessary or

appropriate, but in no case less frequently than once a year, and

(D) where the results of such updating are statistically

significant or relevant to Congressional policymaking, report them

and the reasons for their significance at the end of the calendar

quarter in which the updating occurred.

-SOURCE-

(Pub. L. 93-236, title III, Sec. 307, as added Pub. L. 94-210,

title VI, Sec. 609, Feb. 5, 1976, 90 Stat. 99; amended Pub. L.

95-565, Sec. 7, Nov. 1, 1978, 92 Stat. 2400.)

-MISC1-

AMENDMENTS

1978 - Subsec. (c). Pub. L. 95-565 added subsec. (c).

CONRAIL FUNDING STUDIES; REPORTS TO CONGRESS; RECOMMENDATIONS FOR

FINANCIALLY SELF-SUSTAINING RAIL SYSTEM; AVAILABILITY OF

RECOMMENDATIONS; PUBLICATION IN FEDERAL REGISTER; COMMENTS ON

REPORTS; RECOMMENDATIONS BY SECRETARY ON FUTURE STRUCTURE AND

OPERATIONS BY CORPORATION; IMMUNITY FROM ANTITRUST LAWS; ANALYSIS

OF EFFECTS ON CORPORATION AND EMPLOYEES OF ALTERNATIVE CHANGES IN

LABOR AGREEMENTS AND RELATED OPERATIONAL CHANGES; PROJECTIONS ON

BENEFITS, CHANGES, SAVINGS, AND INCREASED REVENUES

Pub. L. 96-448, title VII, Sec. 703(a)-(d), Oct. 14, 1980, 94

Stat. 1962, directed the United States Railway Association and the

Consolidated Rail Corporation, not later than Apr. 1, 1980 (which

probably should have been Apr. 1, 1981) to each submit a report to

Congress analyzing the impact, upon the Corporation, rail service

in the region, railroad employees, the economy of the region, other

rail carriers in the region and elsewhere, and the Federal budget,

of no further Federal funding for the Corporation, continued

Federal funding of the rail system of the Corporation as then

structured, and future Federal funding of the Corporation to the

extent necessary to preserve rail service in the region which could

be self-supporting, without undue interim disruption of operations,

required publication of these reports in the Federal Register,

directed the Interstate Commerce Commission, not later than May 1,

1981, to submit to Congress its comments on the report of the

Association, the Secretary of Transportation, and the Corporation,

directed the Secretary of Transportation, not later than Apr. 1,

1981, to submit to Congress his recommendations with respect to the

future structure and operations of the Corporation, and not later

than May 1, 1981, to submit to Congress his comments and

recommendations with respect to the reports of the Association and

Corporation, provided that the antitrust laws as defined in section

791(a)(3) of this title not apply to any action of the Association

or Secretary of Transportation prior to May 1, 1981, directed the

Corporation, not later than Mar. 15, 1981 to submit to Congress an

analysis of the effects upon the Corporation and its employees of

alternative changes in labor agreements and related operational

changes, including an analysis of any Federal funding that would be

required, and directed the Corporation, not later than Jan. 15,

1981, to submit to the Association its projections of the benefits

to the Corporation of the Staggers Rail Act of 1980, Pub. L.

96-448, Oct. 14, 1980, 94 Stat. 1895, its projections of changes

needed in the structure of the rail system of the Corporation,

including properties which might be abandoned or transferred, and

other projections of potential savings or increased revenues to the

Corporation.

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of provisions in

subsecs. (b) and (c)(4)(B) of this section relating to the

requirement that the Association submit annual reports to Congress,

see section 3003 of Pub. L. 104-66, as amended, set out as a note

under section 1113 of Title 31, Money and Finance, and the 11th and

12th items on page 195 of House Document No. 103-7.

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Application of National Environmental Policy Act to actions of

Commission not affected by title VI of Pub. L. 94-210, see section

619 of Pub. L. 94-210, set out as a note under section 791 of this

title.

-End-

-CITE-

45 USC Sec. 748 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER III - CONSOLIDATED RAIL CORPORATION

-HEAD-

Sec. 748. Abandonments

-STATUTE-

(a) General

The Corporation may, in accordance with this section, file with

the Commission an application for a certificate of abandonment for

any line which is part of the system of the Corporation. Any such

application shall be governed by this section and shall not, except

as specifically provided in this section, be subject to the

provisions of chapter 109 of title 49.

(b) Applications for abandonment

Any application for abandonment that is filed by the Corporation

under this section before December 1, 1981, shall be granted by the

Commission within 90 days after the date such application is filed

unless, within such 90-day period, an offer of financial assistance

is made in accordance with subsection (d) of this section with

respect to the line to be abandoned.

(c) Notice of insufficient revenues

(1) The Corporation may, prior to November 1, 1985, file with the

Commission a notice of insufficient revenues for any line which is

part of the system of the Corporation.

(2) At any time after the 90-day period beginning with the filing

of a notice of insufficient revenues for a line, the Corporation

may file an application for abandonment for such line. An

application for abandonment that is filed by the Corporation under

this subsection for a line for which a notice of insufficient

revenues was filed under paragraph (1) shall be granted by the

Commission within 90 days after the date such application is filed

unless, within such 90-day period, an offer of financial assistance

is made in accordance with subsection (d) of this section with

respect to such line.

(d) Offers of financial assistance

(1) The provisions of section 10904 of title 49 (including the

timing requirements of subsection (d) thereof) shall apply to any

offer of financial assistance under subsection (b) or (c) of this

section.

(2) The Corporation shall provide any person that intends to make

an offer of financial assistance under subsection (b) or (c) of

this section with such information as the Commission may require.

(e) Liquidation

(1) If any application for abandonment is granted under

subsection (b) of this section, the Commission shall, as soon as

practicable, appraise the net liquidation value of the line to be

abandoned, and shall publish notice of such appraisal in the

Federal Register.

(2) Appraisals made under paragraph (1) shall not be appealable.

(3)(A) If, within 120 days after the date on which an appraisal

is published in the Federal Register under paragraph (1), the

Corporation receives a bona fide offer for the sale, for 75 percent

of the amount at which the liquidation value of such line was

appraised by the Commission, of the line to be abandoned, the

Corporation shall sell such line and the Commission shall, unless

the parties otherwise agree, establish an equitable division of

joint rates for through routes over such lines.

(B) If the Corporation receives no bona fide offer under

subparagraph (A), within such 120-day period, the Corporation may

abandon or dispose of the line as it chooses, except that the

Corporation may not dismantle bridges, or other structures (not

including rail, signals, and other rail facilities) for 120 days

thereafter. The Secretary may require that bridges or other

structures (not including rail, signals, and other rail

facilities), not be dismantled for an additional 8 months if he

assumes all liability of any sort related to such property.

(4) If the purchaser under paragraph (3)(A) of this subsection of

any line of the Corporation abandons such line within five years

after such purchase, the proceeds of any track liquidations shall

be paid into the general fund of the Treasury of the United States.

(f) Employee protection

The provisions of section 10903(b)(3) (!1) of title 49 shall not

apply to any abandonment granted under this section. Any employee

who was protected by the compensatory provisions of subchapter V

(!2) of this chapter immediately prior to August 13, 1981, who is

deprived of employment by such an abandonment shall be eligible for

employee protection under section 797 (!2) of this title.

-SOURCE-

(Pub. L. 93-236, title III, Sec. 308, as added Pub. L. 97-35, title

XI, Sec. 1156(a), Aug. 13, 1981, 95 Stat. 679; amended Pub. L.

98-181, title II, Sec. 2003(c)(2), Nov. 30, 1983, 97 Stat. 1298;

Pub. L. 104-88, title III, Sec. 327(4), Dec. 29, 1995, 109 Stat.

952.)

-REFTEXT-

REFERENCES IN TEXT

Subchapter V of this chapter, referred to in subsec. (f), was

repealed by Pub. L. 97-35, title XI, Sec. 1144(a)(1), Aug. 13,

1981, 95 Stat. 669.

Section 797 of this title, referred to in subsec. (f), was

repealed by Pub. L. 99-509, title IV, Sec. 4024(c), Oct. 21, 1986,

100 Stat. 1904, effective on the sale date (Apr. 2, 1987).

-MISC1-

AMENDMENTS

1995 - Subsec. (d)(1). Pub. L. 104-88, Sec. 327(4)(A),

substituted "section 10904" for "section 10905(d)-(f)".

Subsec. (f). Pub. L. 104-88, Sec. 327(4)(B), substituted "section

10903(b)(3)" for "section 10903(b)(2)".

1983 - Subsec. (c)(1). Pub. L. 98-181 substituted "1985" for

"1983".

EFFECTIVE DATE OF 1995 AMENDMENT

Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2

of Pub. L. 104-88, set out as an Effective Date note under section

701 of Title 49, Transportation.

EFFECTIVE DATE

Section effective Aug. 13, 1981, see section 1169 of Pub. L.

97-35, set out as a note under section 1101 of this title.

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 741, 1321 of this title.

-FOOTNOTE-

(!1) So in original. Section 10903(b) of Title 49, Transportation,

does not contain a par. (3).

(!2) See References in Text note below.

-End-

-CITE-

45 USC SUBCHAPTER IV - TRANSFER OF FREIGHT SERVICES 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER IV - TRANSFER OF FREIGHT SERVICES

-HEAD-

SUBCHAPTER IV - TRANSFER OF FREIGHT SERVICES

-End-

-CITE-

45 USC Secs. 761 to 769c 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER IV - TRANSFER OF FREIGHT SERVICES

-HEAD-

Secs. 761 to 769c. Repealed. Pub. L. 99-509, title IV, Sec.

4033(a)(1), Oct. 21, 1986, 100 Stat. 1908

-MISC1-

Section 761, Pub. L. 93-236, title IV, Sec. 401, as added Pub. L.

97-35, title XI, Sec. 1142, Aug. 13, 1981, 95 Stat. 654, related to

sale of interest of United States in common stock of Consolidated

Rail Corporation.

A prior section 761, Pub. L. 93-236, title IV, Sec. 401, Jan. 2,

1974, 87 Stat. 1010, related to Congressional findings and purpose

in providing for a program of rail service continuation subsidies,

prior to repeal by Pub. L. 94-210, title VIII, Sec. 806, Feb. 5,

1976, 90 Stat. 143, eff. Apr. 1, 1978.

Section 762, Pub. L. 93-236, title IV, Sec. 402, as added Pub. L.

97-35, title XI, Sec. 1142, Aug. 13, 1981, 95 Stat. 655, related to

debt and preferred stock of Consolidated Rail Corporation.

A prior section 762, Pub. L. 93-236, title IV, Sec. 402, Jan. 2,

1974, 87 Stat. 1010; Pub. L. 93-488, Sec. 1(d), Oct. 26, 1974, 88

Stat. 1464; Pub. L. 94-210, title VIII, Sec. 805(a), Feb. 5, 1976,

90 Stat. 139, directed Secretary to provide financial assistance to

States and local or regional transportation authorities in

facilitating and maintaining main line or local rail service, prior

to repeal by Pub. L. 94-210, title VIII, Sec. 806, Feb. 5, 1976, 90

Stat. 143, eff. Apr. 1, 1978.

Section 763, Pub. L. 93-236, title IV, Sec. 403, as added Pub. L.

97-35, title XI, Sec. 1142, Aug. 13, 1981, 95 Stat. 655, related to

determinations about profitability of Consolidated Rail

Corporation.

A prior section 763, Pub. L. 93-236, title IV, Sec. 403, Jan. 2,

1974, 87 Stat. 1012; Pub. L. 93-488, Sec. 1(e), Oct 26, 1974, 88

Stat. 1465; Pub. L. 94-210, title VIII, Sec. 805(b), (c), Feb. 5,

1976, 90 Stat. 142, authorized Association to provide loans for

acquisition of rail properties by States or local or regional

transportation authorities and for modernization of those acquired

properties, prior to repeal by Pub. L. 94-210, title VIII, Sec.

806, Feb. 5, 1976, 90 Stat. 143, eff. Apr. 1, 1978.

Section 764, Pub. L. 93-236, title IV, Sec. 404, as added Pub. L.

97-35, title XI, Sec. 1142, Aug. 13, 1981, 95 Stat. 656, related to

failure to sell interest of United States in common stock of

Consolidated Rail Corporation as an entity.

Section 765, Pub. L. 93-236, title IV, Sec. 405, as added Pub. L.

97-35, title XI, Sec. 1142, Aug. 13, 1981, 95 Stat. 657, related to

plans to transfer Consolidated Rail Corporation's freight rail

properties and service responsibilities.

Section 766, Pub. L. 93-236, title IV, Sec. 406, as added Pub. L.

97-35, title XI, Sec. 1142, Aug. 13, 1981, 95 Stat. 658, related to

consolidation and review of freight transfer agreements.

Section 767, Pub. L. 93-236, title IV, Sec. 407, as added Pub. L.

97-35, title XI, Sec. 1142, Aug. 13, 1981, 95 Stat. 658, related to

public comment and Congressional notification regarding freight

transfer agreements.

Section 768, Pub. L. 93-236, title IV, Sec. 408, as added Pub. L.

97-35, title XI, Sec. 1142, Aug. 13, 1981, 95 Stat. 659, related to

performance under freight transfer agreements.

Section 769, Pub. L. 93-236, title IV, Sec. 409, as added Pub. L.

97-35, title XI, Sec. 1142, Aug. 13, 1981, 95 Stat. 659, provided

that conveyance of interest in rail properties under freight

transfer agreement is deemed to be an assignment.

Section 769a, Pub. L. 93-236, title IV, Sec. 410, as added Pub.

L. 97-35, title XI, Sec. 1142, Aug. 13, 1981, 95 Stat. 660, related

to identification and sale of unprofitable subsidiaries of

Consolidated Rail Corporation.

Section 769b, Pub. L. 93-236, title IV, Sec. 411, as added Pub.

L. 97-35, title XI, Sec. 1146(a), Aug. 13, 1981, 95 Stat. 672,

related to labor transfer agreements.

Section 769c, Pub. L. 93-236, title IV, Sec. 412, as added Pub.

L. 97-35, title XI, Sec. 1146(a), Aug. 13, 1981, 95 Stat. 673,

related to labor protection benefits.

-End-

-CITE-

45 USC SUBCHAPTER V - EMPLOYEE PROTECTION 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER V - EMPLOYEE PROTECTION

-HEAD-

SUBCHAPTER V - EMPLOYEE PROTECTION

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 745, 836 of this

title.

-End-

-CITE-

45 USC Secs. 771 to 780 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER V - EMPLOYEE PROTECTION

-HEAD-

Secs. 771 to 780. Repealed. Pub. L. 97-35, title XI, Sec.

1144(a)(1), Aug. 13, 1981, 95 Stat. 669

-MISC1-

Section 771, Pub. L. 93-236, title V, Sec. 501, Jan. 2, 1974, 87

Stat. 1012; Pub. L. 94-210, title VI, Secs. 607(i), 613, Feb. 5,

1976, 90 Stat. 97, 112; Pub. L. 94-248, Sec. 5, Mar. 25, 1976, 90

Stat. 286; Pub. L. 94-555, title II, Sec. 207(a), Oct. 19, 1976, 90

Stat. 2621; Pub. L. 96-448, title V, Sec. 508(d), Oct. 14, 1980, 94

Stat. 1957, set forth provisions defining terms applicable to

employee protection rights.

Section 772, Pub. L. 93-236, title V, Sec. 502, Jan. 2, 1974, 87

Stat. 1013; Pub. L. 94-210, title VI, Sec. 614, Feb. 5, 1976, 90

Stat. 112, set forth provisions respecting employment offers.

Section 773, Pub. L. 93-236, title V, Sec. 503, Jan. 2, 1974, 87

Stat. 1014, related to assignment of work.

Section 774, Pub. L. 93-236, title V, Sec. 504, Jan. 2, 1974, 87

Stat. 1014; Pub. L. 94-210, title VI, Sec. 615, Feb. 5, 1976, 90

Stat. 113; Pub. L. 94-555, title II, Secs. 207(b), 208, Oct. 19,

1976, 90 Stat. 2622; Pub. L. 96-448, title V, Sec. 506, Oct. 14,

1980, 94 Stat. 1956, set forth provisions respecting collective

bargaining agreements.

Section 775, Pub. L. 93-236, title V, Sec. 505, Jan. 2, 1974, 87

Stat. 1015; Pub. L. 94-210, title VI, Sec. 616(a)-(g), Feb. 5,

1976, 90 Stat. 115, 116; Pub. L. 94-555, title II, Secs. 209, 210,

Oct. 19, 1976, 90 Stat. 2623; Pub. L. 96-448, title V, Secs.

501-503, Oct. 14, 1980, 94 Stat. 1948-1954, set forth provisions

relating to employee protection programs.

Section 776, Pub. L. 93-236, title V, Sec. 506, Jan. 2, 1974, 87

Stat. 1019, related to contracting out of work.

Section 777, Pub. L. 93-236, title V, Sec. 507, Jan. 2, 1974, 87

Stat. 1020; Pub. L. 96-448, title V, Sec. 508(e), Oct. 14, 1980, 94

Stat. 1957, related to arbitration of disputes or controversies.

Section 778, Pub. L. 93-236, title V, Sec. 508, Jan. 2, 1974, 87

Stat. 1020; Pub. L. 94-210, title VI, Sec. 617, Feb. 5, 1976, 90

Stat. 117, related to duties of acquiring and selling railroads.

Section 779, Pub. L. 93-236, title V, Sec. 509, Jan. 2, 1974, 87

Stat. 1020; Pub. L. 94-210, title VI, Sec. 616(h), Feb. 5, 1976, 90

Stat. 116; Pub. L. 94-555, title II, Sec. 207(c), Oct. 19, 1976, 90

Stat. 2622; Pub. L. 96-448, title V, Sec. 504, Oct. 14, 1980, 94

Stat. 1955, set forth provisions respecting benefit payments.

Section 780, Pub. L. 93-236, title V, Sec. 510, as added Pub. L.

96-448, title V, Sec. 505, Oct. 14, 1980, 94 Stat. 1956, related to

railroad hiring.

EFFECTIVE DATE OF REPEAL; CONTINUATION OF BENEFITS AFTER REPEAL;

LAW GOVERNING DISPUTES; PREREQUISITES TO DISBURSEMENT OF BENEFITS

Pub. L. 97-35, title XI, Sec. 1144(a)(2)-(4), Aug. 13, 1981, 95

Stat. 669, provided that:

"(2) Notwithstanding the repeal made by paragraph (1) of this

subsection [repealing this subchapter] -

"(A) benefits accrued as of the effective date of this

subsection as a result of events that occurred wholly prior to

October 1, 1981, shall be disbursed except as provided in

paragraph (3); and

"(B) any dispute or controversy regarding such benefits shall

be determined under the terms of the law in effect on the date

the claim arose.

"(3) Benefits shall not be disbursed under paragraph (2)(A)

unless the employee has filed a claim for such benefits within 90

days after the date of repeal; except that, with respect to a claim

which is the subject of or is based upon any arbitration decision

issued after the date of repeal, such 90-day period shall not

commence until such arbitration decision is issued to the employee

and the employee's representative; and no benefits shall be

disbursed unless appropriations for such purposes are or become

available.

"(4) The provisions of this subsection shall take effect on the

first day of the first month beginning after the date of enactment

of this subtitle [Aug. 13, 1981]."

EMPLOYEE PROTECTION PAYMENTS UNDER FORMER PROVISIONS; REIMBURSEMENT

Pub. L. 96-448, title V, Sec. 507, Oct. 14, 1980, 94 Stat. 1956,

provided that notwithstanding any other provision of law, the

Consolidated Rail Corporation and other employers with employees

protected under this subchapter, until the effective date of Pub.

L. 96-448 [probably means Oct. 1, 1980, see section 710 of Pub. L.

96-448, set out as a note under section 1170 of Title 11,

Bankruptcy], continue to make payments for employee protection

under such Act, [probably means this subchapter] in accordance with

the provisions of such Act [probably means this subchapter], which

were in effect on Jan. 1, 1979, and that notwithstanding any other

provision of law, such Corporation and employers be reimbursed for

such payments in accordance with former section 779(a) of this

title.

CONRAIL EMPLOYEE PROTECTION

Pub. L. 96-254, title II, Sec. 214, May 30, 1980, 94 Stat. 417,

provided that the Consolidated Railroad Corporation make payments

in accordance with this subchapter, and the United States Railway

Association not, as a result of such payments, withhold any funds

from the Corporation, and that this provision take effect as of

Mar. 1, 1980, and remain in effect until the expiration of the

45-day period beginning on May 30, 1980, and after the expiration

of such 45-day period, payments by the Consolidated Rail

Corporation under this subchapter and funding of the Corporation by

the United States Railway Association be governed by applicable

law.

-End-

-CITE-

45 USC SUBCHAPTER VI - MISCELLANEOUS PROVISIONS 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VI - MISCELLANEOUS PROVISIONS

-HEAD-

SUBCHAPTER VI - MISCELLANEOUS PROVISIONS

-End-

-CITE-

45 USC Sec. 791 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VI - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 791. Relationship to other laws

-STATUTE-

(a) Antitrust

(1) Except as specifically provided in paragraph (2) of this

subsection, no provision of this chapter shall be deemed to convey

to any railroad or employee or director thereof any immunity from

civil or criminal liability, or to create defenses to actions,

under the antitrust laws.

(2) The antitrust laws are inapplicable with respect to any

action taken to formulate or implement the final system plan where

such action was in compliance with the requirements of such plan

and with respect to any action taken to formulate or implement any

supplemental transaction.

(3) As used in this subsection, "antitrust laws" includes the Act

of July 2, 1890 (ch. 647, 26 Stat. 209), as amended; the Act of

October 15, 1914 (ch. 323, 38 Stat. 730), as amended; the Federal

Trade Commission Act (38 Stat. 717), as amended [15 U.S.C. 41 et

seq.], sections 73 and 74 of the Act of August 27, 1894 (28 Stat.

570), as amended [15 U.S.C. 8, 9]; the Act of June 19, 1936 (ch.

592, 49 Stat. 1526), as amended; and the antitrust laws of any

State or subdivision thereof.

(b) Commerce, securities, and bankruptcy

(1) The provisions of subtitle IV of title 49 and the Bankruptcy

Act, are inapplicable (A) to actions taken under this chapter to

formulate and implement the final system plan where such action was

in compliance with the requirements of such plan, and (B) to

actions taken under this chapter to formulate or implement any

supplemental transaction.

(2) All securities of the Corporation which are issued to the

Association as the initial holder, or which are issued in

connection with the transfer to the Corporation or a subsidiary

thereof of rail properties under this chapter, shall be deemed for

all purposes to have been issued subject to and authorized pursuant

to section 11301 (!1) of title 49.

(3) The provisions of section 77e of title 15, shall not apply to

transactions involving the issuance of any security of the

Corporation to the Association, transactions involving the issuance

of any security of the Corporation that is deposited with the

special court pursuant to section 743(a) of this title, or

transactions involving the issuance or distribution of any security

of the Corporation, where the terms and conditions of such issuance

or distribution are approved by the special court pursuant to

section 743(c) of this title.

(4) The powers and duties of the Commission under section 77 of

the Bankruptcy Act, with respect to a railroad in reorganization in

the region which conveys all or substantially all of its designated

rail properties to the Corporation or a subsidiary thereof, or to

profitable railroads in the region, pursuant to the final system

plan, and the requirement that plans of reorganization be filed

with the Commission, shall cease upon the date of such conveyance.

The powers and duties of the Commission under section 77 of the

Bankruptcy Act shall also so terminate, as of February 5, 1976,

with respect to any railroad in reorganization under such section

77 but not subject to this chapter which (1) does not operate any

line of railroad, and (2) has transferred all or substantially all

of its rail properties to a railroad in reorganization in the

region which was subject to this chapter prior to February 5, 1976.

Thereafter, such powers and duties of the Commission shall be

vested in the district court of the United States which has

jurisdiction of the estate of any such railroad in reorganization

at the time of such conveyance. Such court shall proceed to

reorganize or liquidate such railroad in reorganization pursuant to

such section 77 on such terms as the court deems just and

reasonable, or pursuant to any other provisions of the Bankruptcy

Act, if the court finds that such action would be in the best

interests of such estate. This paragraph does not affect any

obligation of any carrier by railroad subject to regulation under

subtitle IV of title 49. The powers and duties of the Commission

under section 77 of the Bankruptcy Act shall continue in effect

only to the extent that the railroad in reorganization continues to

operate any line of railroad.

(c) Environment

The provisions of section 4332(2)(C) of title 42 shall not apply

with respect to any action taken under authority of this chapter

before, and including, the conveyance of rail properties ordered by

the special court under section 743 (b)(1) of this title, and shall

not apply thereafter to any action taken in compliance with the

requirements of the final system plan.

(d) Northeast Corridor

(1) Rail properties designated in accordance with section

716(c)(1)(C) of this title shall be purchased or leased by the

National Railroad Passenger Corporation. The Corporation shall

negotiate an appropriate sale or lease agreement with the National

Railroad Passenger Corporation for the properties designated for

transfer pursuant to section 716(c)(1)(C) of this title, which

shall take effect on the date of conveyance of such properties to

the Corporation.

(2) Properties acquired by purchase, lease, or otherwise pursuant

to this subsection shall be improved in order to meet the goal set

forth in section 716(a)(3) of this title, relating to improved

highspeed passenger service, by the earliest practicable date after

January 2, 1974.

(3) The Secretary shall begin the necessary engineering studies

and improvements on January 2, 1974.

(4) The final system plan shall provide for any necessary

coordination with freight or commuter services of use of the

facilities designated in section 716(c)(1)(C) of this title. Such

coordination may be effectuated through a single operating entity,

designated in the final system plan, or as mutually agreed upon by

the interested parties.

(5) Construction or improvements made pursuant to this subsection

may be made in consultation with the Corps of Engineers.

-SOURCE-

(Pub. L. 93-236, title VI, Sec. 601(a)-(d), Jan. 2, 1974, 87 Stat.

1021; Pub. L. 94-210, title VI, Sec. 618, title VII, Sec. 706(b),

formerly Sec. 705(b), Feb. 5, 1976, 90 Stat. 117, 123, renumbered

Pub. L. 96-254, title II, Sec. 206(a), May 30, 1980, 94 Stat. 412.)

-REFTEXT-

REFERENCES IN TEXT

Act of July 2, 1890 (ch. 647, 26 Stat. 209), as amended, referred

to in subsec. (a)(3), is known as the Sherman Act, which is

classified to sections 1 to 7 of Title 15, Commerce and Trade. For

complete classification of this Act to the Code, see Short Title

note set out under section 1 of Title 15 and Tables.

Act of October 15, 1914 (ch. 323, 38 Stat. 730), as amended,

referred to in subsec. (a)(3), is known as the Clayton Act, which

is classified to sections 12, 13, 14 to 19, 20, 21, and 22 to 27 of

Title 15, and sections 52 and 53 of Title 29, Labor. For further

details and complete classification of this Act to the Code, see

References in Text note set out under section 12 of Title 15 and

Tables.

The Federal Trade Commission Act (38 Stat. 717), as amended,

referred to in subsec. (a)(3), is act Sept. 26, 1914, ch. 311, 38

Stat. 717, as amended, which is classified generally to subchapter

I (Sec. 41 et seq.) of chapter 2 of Title 15. For complete

classification of this Act to the Code, see section 58 of Title 15

and Tables.

Sections 73 and 74 of the Act of August 27, 1894, referred to in

subsec. (a)(3), are sections 73 and 74 of act Aug. 27, 1894, ch.

349, 28 Stat. 570. Sections 73 to 77 of this Act are known as the

Wilson Tariff Act. Sections 73 to 76 enacted sections 8 to 11 of

Title 15. Section 77 was not classified to the Code. For complete

classification of this Act to the Code, see Short Title note set

out under section 8 of Title 15 and Tables.

Act of June 19, 1936 (ch. 592, 49 Stat. 1526), as amended,

referred to in subsec. (a)(3), is popularly known as the

Robinson-Patman Antidiscrimination Act and also as the

Robinson-Patman Price Discrimination Act, which enacted sections

13a, 13b, and 21a of Title 15, Commerce and Trade, and amended

section 13 of Title 15. For complete classification of this Act to

the Code, see Tables.

The Bankruptcy Act, referred to in subsec. (b)(1), (4), is act

July 1, 1898, ch. 541, 30 Stat. 544, as amended, which was

classified generally to former Title 11, Bankruptcy. Section 77 of

this Act was classified to section 205 of former Title 11. The Act

was repealed effective Oct. 1, 1979, by Pub. L. 95-598, Secs.

401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of which

enacted revised Title 11. For current provisions relating to

railroad reorganization, see subchapter IV (Sec. 1161 et seq.) of

chapter 11 of Title 11.

Section 11301 of title 49, referred to in subsec. (b)(2), was

omitted and a new section 11301 enacted in the general amendment of

subtitle IV of Title 49, Transportation, by Pub. L. 104-88, title

I, Sec. 102(a), Dec. 29, 1995, 109 Stat. 804, 837. The new section

11301 does not relate to issuance of securities. Previously, in

subsec. (b)(2), "section 11301 of title 49" was substituted for

"section 20a of the Interstate Commerce Act (49 U.S.C. 20a)" on

authority of Pub. L. 95-473, Sec. 3(b), Oct. 17, 1978, 92 Stat.

1466, the first section of which enacted subtitle IV (Sec. 10101 et

seq.) of Title 49.

-COD-

CODIFICATION

In subsec. (b)(1), (4), "subtitle IV of title 49" substituted for

"the Interstate Commerce Act (49 U.S.C. 1 et seq.)" on authority of

Pub. L. 95-473, Sec. 3(b), Oct. 17, 1978, 92 Stat. 1466, the first

section of which enacted subtitle IV (Sec. 10101 et seq.) of Title

49, Transportation.

A subsec. (e) of section 601 of Pub. L. 93-236, which was

designated in the original as "Emergency Service", amended section

1(16) of former Title 49, Transportation.

-MISC1-

AMENDMENTS

1976 - Subsec. (a)(2). Pub. L. 94-210, Sec. 618(a), inserted

provision relating to any action to formulate or implement any

supplemental transaction.

Subsec. (b). Pub. L. 94-210, Sec. 618(b), redesignated existing

provisions as par. (1), substituted provisions relating to

inapplicability to actions under this chapter to formulate and

implement the final system plan and any supplemental transaction,

for provisions relating to inapplicability to transactions under

this chapter to the extent necessary to formulate and implement the

final system plan whenever a provision of the Interstate Commerce

or Bankruptcy Act is inconsistent with this chapter, and added

pars. (2) to (4).

Subsec. (c). Pub. L. 94-210, Sec. 618(c), substituted provisions

relating to inapplicability to action taken before, and including,

the conveyance of rail properties under section 743(b)(1) of this

title, and action taken thereafter in compliance with the

requirements of the final system plan, for provisions relating to

inapplicability to action taken before the effective date of the

final system plan.

Subsec. (d)(1). Pub. L. 94-210, Sec. 705(b), substituted

mandatory for discretionary authority for purchase of properties by

the Corporation and provisions relating to negotiations for

properties for transfer pursuant to section 716(c)(1)(C) of this

title, for provisions relating to negotiations as provided in the

final system plan.

-TRANS-

ABOLITION OF SPECIAL COURT, REGIONAL RAIL REORGANIZATION ACT OF

1973, AND TRANSFER OF FUNCTIONS

Special court abolished and all jurisdiction and functions

transferred to United States District Court for District of

Columbia, see section 719(b)(2) of this title.

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-MISC2-

APPLICABILITY OF NATIONAL ENVIRONMENTAL POLICY ACT

Section 619 of title VI of Pub. L. 94-210 provided that: "Nothing

in this title [enacting sections 726 and 745 to 747 of this title

and amending sections 702, 711 to 713, 716, 718 to 721, 724, 725,

741, 743, 744, 771, 772, 774, 775, 778, 779, and 791 of this title,

and section 856 of former Title 31, Money and Finance] shall affect

the application of the National Environmental Policy Act of 1969

(42 U.S.C. 4321 et seq.) to actions of the Commission."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 716, 719, 741, 742, 743

of this title; title 11 section 1166; title 49 section 24907.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

45 USC Sec. 792 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VI - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 792. Repealed. Pub. L. 97-375, title I, Sec. 111(b), Dec. 21,

1982, 96 Stat. 1821

-MISC1-

Section, Pub. L. 93-236, title VI, Sec. 602, Jan. 2, 1974, 87

Stat. 1022, provided that as part of his annual report, the

Secretary transmit to Congress a comprehensive report on the

effectiveness of the Association and the Corporation in

implementing the purposes of this chapter, together with any

recommendations for additional legislative or other action.

Subsequent to repeal by Pub. L. 97-375, section was repealed and

the provisions thereof were reenacted as the last sentence of

section 308(a) of Title 49, Transportation, by Pub. L. 97-449,

Secs. 1(b), 7(b), Jan. 12, 1983, 96 Stat. 2413, 2443. Section 6(a)

of Pub. L. 97-449 provided that: "Sections 1-5 of this act restate,

without substantive change, laws enacted before November 15, 1982,

that were replaced by those sections. * * * Laws enacted after

November 14, 1982, that are inconsistent with this Act supersede

this Act to the extent of the inconsistency." Accordingly, the last

sentence of section 308(a) of Title 49 was superseded by the repeal

made by section 111(b) of Pub. L. 97-375, and was specifically

repealed by Pub. L. 98-216, Sec. 2(1)(A)(ii), Feb. 14, 1984, 98

Stat. 4.

Pub. L. 97-375, title I, Sec. 111(b), Dec. 21, 1982, 96 Stat.

1821, which repealed this section, was itself repealed by Pub. L.

98-216, Sec. 6(b), Feb. 14, 1984, 98 Stat. 8.

-End-

-CITE-

45 USC Sec. 793 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VI - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 793. Repealed. Pub. L. 95-473, Sec. 4(b), Oct. 17, 1978, 92

Stat. 1466; Pub. L. 97-449, Sec. 4(b)(2), Jan. 12, 1983, 96 Stat.

2441, eff. Oct. 17, 1978

-MISC1-

Section, Pub. L. 93-236, title VI, Sec. 603, Jan. 2, 1974, 87

Stat. 1023, related to freight rates for recyclables.

INVESTIGATION OF DISCRIMINATORY FREIGHT RATES FOR TRANSPORTATION OF

RECYCLABLE OR RECYCLED MATERIALS

Pub. L. 94-210, title II, Sec. 204, Feb. 5, 1976, 90 Stat. 40,

which provided for an investigation by the Interstate Commerce

Commission of discriminatory freight rates for transportation of

recyclable or recycled materials, was repealed by Pub. L. 95-473,

Sec. 4(b), Oct. 17, 1978, 92 Stat. 1466.

-End-

-CITE-

45 USC Sec. 794 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VI - MISCELLANEOUS PROVISIONS

-HEAD-

Sec. 794. Tax payments to States

-STATUTE-

(a) Notwithstanding any other provision of law, no railroad in

reorganization shall withhold from any State, or any political

subdivision thereof, the payment of the portion of any tax owed by

such railroad to such State or subdivision, which portion has been

collected by such railroad from any tenant thereof.

(b) Any railroad which violates the provisions of subsection (a)

of this section by withholding any portion of a tax referred to in

such subsection shall be fined not more than $10,000 for each such

violation.

-SOURCE-

(Pub. L. 93-236, title VI, Sec. 605, as added Pub. L. 94-5, Sec. 9,

Feb. 28, 1975, 89 Stat. 9.)

-End-

-CITE-

45 USC SUBCHAPTER VII - PROTECTION OF EMPLOYEES 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-SECREF-

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in sections 231, 351 of this

title.

-End-

-CITE-

45 USC Sec. 797 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797. Repealed. Pub. L. 99-509, title IV, Sec. 4024(c), Oct.

21, 1986, 100 Stat. 1904

-MISC1-

Section, Pub. L. 93-236, title VII, Sec. 701, as added Pub. L.

97-35, title XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 661; Pub. L.

99-509, title IV, Sec. 4024(a), (b), Oct. 21, 1986, 100 Stat. 1903,

related to employee protection agreement.

REPEAL OF SECTION; CONTINUING RESPONSIBILITIES OF CONSOLIDATED RAIL

CORPORATION AFTER SALE DATE

Section 4024(c)-(f) of Pub. L. 99-509, as amended by Pub. L.

99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:

"(c) Repeal of Section 701. - Section 701 of the Regional Rail

Reorganization Act of 1973 [45 U.S.C. 797] is repealed effective on

the sale date [Apr. 2, 1987, see 45 U.S.C. 702(17A)].

Notwithstanding this repeal -

"(1) any dispute or controversy regarding benefits under

section 701 shall be determined under the terms of the law in

effect prior to such repeal; and

"(2) the Railroad Retirement Board shall take such actions as

may be necessary to complete administration and closeout of the

section 701 program and the Board is authorized to receive and

apply Corporation funds for this purpose.

"(d) Continuing Responsibilities. - (1) On and after the sale

date, the Corporation shall provide the protection for its

employees described in 'Part III, Article III, Employee

Protection', of the 'Definitive Agreement of September 17, 1985, By

and Between Conrail and the Undersigned Representatives of

Conrail's Agreement Employees' and Appendix 3 thereto, together

with any amendments thereto, or under any other terms and

conditions as shall be agreed between the Corporation and the

representatives of its employees.

"(2) The Corporation shall pay, as designated by the Railroad

Retirement Board, any remaining benefits under section 701 of the

Regional Rail Reorganization Act of 1973 [45 U.S.C. 797] that

accrued, but were not disbursed, prior to the sale date.

"(3) The Railroad Retirement Board shall transfer to the

Corporation such information regarding administration of the labor

protection program under such section 701 as may be reasonably

necessary for the Corporation to discharge its responsibilities

under this subsection, including copies of the individual claim

records of employees of the Corporation.

"(4) The United States shall have no liability for benefits under

this subsection.

"(e) Compensation for Wages Below Industry Standard. - The

Corporation shall pay $200,000,000 to present and former employees

subject to collective bargaining agreements, in accordance with the

terms and conditions in the Definitive Agreement referred to in

subsection (d)(1), or as otherwise agreed between the parties.

"(f) ESOP Transactions. - (1) As soon as practicable after the

date of the enactment of this Act [Oct. 21, 1986], the employee

stock ownership plan of the Corporation (hereafter in this

subsection referred to as the 'ESOP') shall be amended to provide

that -

"(A) the shares of the ConRail Equity Corporation preferred

stock held by the ESOP shall be surrendered by the ESOP in

exchange for an equal number of shares of the common stock of the

Corporation, and such common stock of the Corporation shall be

allocated by the ESOP to the same persons in the same amounts as

the shares of ConRail Equity Corporation preferred stock had been

allocated; and

"(B) the remaining shares of the ConRail Equity Corporation

preferred stock held by the Corporation shall be cancelled, and

an equal number of shares of the common stock of the Corporation

shall be contributed by the Corporation to the ESOP, which shares

shall be allocated by the ESOP to persons who are or were ESOP

participants in accordance with the formula set forth in section

2 of Article II of Part III of the Definitive Agreement referred

to in subsection (d)(1), and in accordance with a comparable

formula for present and former employees of the Corporation not

covered by such section of the Definitive Agreement, except that

no contribution by the Corporation to the ESOP shall be made

which would affect the tax-qualified status of the ESOP, or of

any of the employee benefit plans maintained by the Corporation

or any affiliate of the Corporation, under the Internal Revenue

Code of 1986 [26 U.S.C. 1 et seq.].

"(2)(A)(i) As soon as practicable after the expiration of 180

days after 100 percent of the United States shares are sold, the

ESOP shall distribute all of the stock in the accounts of its

participants and beneficiaries, except as provided in clause (ii).

"(ii) Fractional shares shall not be distributed under clause

(i). Shares equal to the aggregate amount of fractional shares

shall be surrendered by the ESOP and redeemed by the Corporation

for cash at the average closing price for the common stock of the

Corporation on a national securities exchange for the 10 business

days immediately preceding the date of distribution under clause

(i), or, if the common stock of the Corporation is not listed on a

national securities exchange, at the average closing price for such

stock for such 10 business days as appearing in any regularly

published reporting or quotation service, and the proceeds of such

redemption shall be distributed by the ESOP to the same

participants and beneficiaries and in the same amounts as the

fractional shares had been allocated.

"(B) After completing the distribution under subparagraph (A),

the ESOP shall terminate.

"(3) The Corporation shall distribute any full shares of its

common stock which, because of the exception under paragraph

(1)(B), could not be contributed to the ESOP to those persons to

whom the ESOP would have allocated such shares pursuant to

paragraph (1)(B) had such shares been contributed to the ESOP. The

Corporation shall pay cash pursuant to the formula set forth in

paragraph (2)(A)(ii) in lieu of fractional shares.

"(4) For purposes of Rule 144 promulgated under the Securities

Act of 1933 [15 U.S.C. 77a et seq.], each share of the common stock

of the Corporation distributed under this subsection shall be

deemed to have been beneficially owned by the recipient, as of the

date of such distribution, for a period of 3 years."

-End-

-CITE-

45 USC Sec. 797a 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797a. Termination allowance

-STATUTE-

(a) General

The Corporation may terminate the employment of certain

employees, in accordance with this section, upon the payment of an

allowance of $350 for each month of active service with the

Corporation or with a railroad in reorganization, but in no event

may any such termination allowance exceed $25,000.

(b) Employment needs

Within 90 days after August 13, 1981, the Corporation shall

determine, for each location, the number of employees that the

Corporation intends to separate under subsection (a) of this

section.

(c) Notification and separation procedure

(1) Within 90 days after August 13, 1981, the Corporation shall

notify its employees of their rights and responsibilities under

this section.

(2) Within 90 days after August 13, 1981, the Corporation shall

notify each train and engine service employee eligible to be

separated under paragraph (3) that such employee may be entitled to

receive a separation payment under this section if such employee

files a written request to be separated. Such notice may be revised

from time to time.

(3) If the number of employees who request to be separated

pursuant to paragraph (2) of this subsection is greater, in engine

service at any location, than the number of excess firemen at the

location, and in train service at the location than the number of

excess second and third brakemen, as determined by the Corporation,

the Corporation shall separate the employees described in paragraph

(2) of this subsection in order of seniority beginning with the

most senior employee, until the excess firemen and second and third

brakemen positions at that location, as determined by the

Corporation, have been eliminated.

(d) Designated separations

If the number of employees who are separated pursuant to

subsection (c)(3) of this section is less at any location than the

number of excess firemen in freight and commuter service and second

and third brakemen in freight service at such location, as

determined by the Corporation, the Corporation may, after 210 days

after August 13, 1981, designate for separation employees in engine

service or train service respectively in inverse order of

seniority, beginning with the most junior employee in active

service at such location until the excess firemen in freight and

commuter service and second and third brakemen in freight service,

at that location have been eliminated. An employee designated under

this subsection may choose (1) to furlough himself voluntarily, in

which case the next most junior employee protected under the

fireman manning or crew consist agreements or any other agreement

or law, in the same craft or class at such location may be

separated instead and receive the separation allowance, or (2) to

exercise his seniority to another location, in which case the

Corporation may separate, under the provisions of this subsection,

the next most junior protected employee in active service at the

location to which seniority ultimately is exercised.

(e) Effect on positions

(1) The Corporation shall refrain from filling one fireman

position in freight service, or in commuter service where

applicable, for each employee in engine service separated in

accordance with this section.

(2) The Corporation may refrain from filling one brakeman

position in excess of one conductor and one brakeman on one crew in

freight service for each employee in train service who is separated

in accordance with this section.

(3) Positions permitted to be not filled under this subsection

shall be not filled in different types of freight service actually

operated at or from the location in a sequence to be agreed upon

between the Corporation and the general chairman representative of

classes or crafts of employees having jurisdiction over the

positions to be not filled. If no such agreement is reached, the

Corporation may designate the position to be not filled.

(4) Notwithstanding paragraphs (1) and (2) of this subsection,

the Corporation shall retain all rights it has under any provision

of law or agreement to refrain from filling any position of

employment.

(f) Procedures

The Corporation and representatives of the various classes and

crafts of employees to be separated may agree on procedures to

implement this section, but the absence of such agreement shall not

interfere with implementation of the separations authorized by this

section.

(g) Commuter employees

The provisions of this section shall apply to the separation of

firemen in commuter service, except that with respect to such

employees the Corporation is required to make the separations

authorized by this section.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 702, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 662.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 231, 351, 741, 797d,

797i, 1103 of this title.

-End-

-CITE-

45 USC Sec. 797b 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797b. Preferential hiring

-STATUTE-

(a) General

Any employee who is deprived of employment shall have the first

right of hire by any other railroad for a vacancy for which he is

qualified in a class or craft (or in the case of a non-agreement

employee, for a non-agreement vacancy) in which such employee was

employed by the Corporation or a predecessor carrier for not less

than one year, except where such a vacancy is covered by (1) an

affirmative action plan, or a hiring plan designed to eliminate

discrimination, that is required by Federal or State statute,

regulation, or Executive order, or by the order of a Federal court

or agency, or (2) a permissible voluntary affirmative action plan.

For purposes of this section, a railroad shall not be considered to

be hiring new employees when it recalls any of its own furloughed

employees.

(b) Status

The first right of hire afforded to employees under this section

shall be coequal to the first right of hire afforded under sections

907 and 1004 of this title.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 703, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 663.)

-MISC1-

EXEMPTION OF NATIONAL RAILROAD PASSENGER CORPORATION IN HIRING

QUALIFIED TRAIN AND ENGINE EMPLOYEES

Pub. L. 99-272, title IV, Sec. 4011(c), Apr. 7, 1986, 100 Stat.

109, provided that: "The provisions of section 703 of the Regional

Rail Reorganization Act of 1973 (45 U.S.C. 797b), section 8 of the

Milwaukee Railroad Restructuring Act (45 U.S.C. 907), and section

105 of the Rock Island Railroad Transition and Employee Assistance

Act (45 U.S.C. 1004) shall not apply to the National Railroad

Passenger Corporation in the hiring of qualified train and engine

employees who hold seniority rights to work in intercity rail

passenger service in connection with the assumption by such

Corporation of functions previously performed under contract by

other carriers."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 741, 797c, 797d, 797m of

this title.

-End-

-CITE-

45 USC Sec. 797c 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797c. Central register of railroad employment

-STATUTE-

(a) Register

(1) The Railroad Retirement Board (hereafter in this section

referred to as the "Board") shall prepare and maintain a register

of persons separated from railroad employment after at least one

year of completed service with a railroad who have declared their

current availability for employment in the railroad industry. The

register shall be subdivided by class and craft of prior employment

and shall be updated periodically to reflect current availability.

(2) Each entry in the register shall include, or provide access

to, basic information concerning the individual's experience and

qualifications.

(3) The Board shall place at the top of the register those former

railroad employees entitled to priority under applicable provisions

of law, including this chapter.

(b) Corporation employees

As soon as is practicable after August 13, 1981, the Corporation

shall provide to the Board the names of its former employees who

elect to appear on the register and who have not been offered

employment with acquiring railroads.

(c) Vacancy notices; warning; civil penalty

(1) Each railroad shall timely file with the Board a notice of

vacancy with respect to any position for which the railroad intends

to accept applications from persons other than current employees of

that carrier.

(2)(A) As soon as the Board becomes aware of any failure on the

part of a railroad to comply with paragraph (1), the Board shall

issue a warning to such railroad of its potential liability under

subparagraph (B).

(B) Any railroad failing to comply with paragraph (1) of this

subsection after being warned by the Board under subparagraph (A)

shall be liable for a civil penalty in the amount of $500 for each

subsequent vacancy with respect to which such railroad has so

failed to comply.

(d) Placement

The Board shall, through distribution of copies of the central

register (or portions thereof) to railroads and representatives of

classes or crafts of employees and through publication of

employment information derived from vacancy notices filed with the

Board, promote the placement of former railroad employees

possessing requisite skills and experience in appropriate positions

with other railroads.

(e) Employment applications

In addition to its responsibilities under subsections (a) through

(d) of this section, the Board shall facilitate the filing of

employment applications with respect to current vacancies in the

industry by former railroad employees entitled to priority under

applicable provisions of law, including this chapter.

(f) Expiration

The provisions of this section shall cease to be effective on the

expiration of the 6-year period beginning on August 13, 1981.

(g) Resolution of disputes

Any dispute, grievance, or claim arising under this section,

section 797b of this title, section 907 of this title, or section

1004 of this title shall be subject to resolution in accordance

with the following procedures:

(1) Any employee with such a dispute, grievance, or claim may

petition the Board to review and investigate the dispute,

grievance, or claim.

(2) The Board shall investigate the dispute, grievance, or

claim, and if it concludes that the employee's rights under this

section, section 797b of this title, section 907 of this title,

or section 1004 of this title may have been violated, the

dispute, grievance, or claim shall be subject to resolution in

accordance with the procedures set forth in section 153 of this

title.

(3) In the case of any violation of this section, section 797b

of this title, section 907 of this title, or section 1004 of this

title, the Adjustment Board (or any division or delegate thereof)

or any other board of adjustment created under section 153 of

this title shall, where appropriate, award such relief, including

back pay, as may be necessary to enforce the employee's rights.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 704, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 663; amended Pub. L.

97-468, title II, Sec. 235, Jan. 14, 1983, 96 Stat. 2547; Pub. L.

99-272, title IV, Sec. 4011(a), (b), Apr. 7, 1986, 100 Stat. 108,

109.)

-MISC1-

AMENDMENTS

1986 - Subsec. (c). Pub. L. 99-272, Sec. 4011(a), designated

existing provisions as par. (1) and added par. (2).

Subsec. (f). Pub. L. 99-272, Sec. 4011(b), substituted "6-year"

for "4-year".

1983 - Subsec. (f). Pub. L. 97-468, Sec. 235(a), substituted

"4-year" for "3-year".

Subsec. (g). Pub. L. 97-468, Sec. 235(b), substituted "this

section, section 797b of this title, section 907 of this title, or

section 1004 of this title" for "this section or section 797b of

this title" wherever appearing.

EFFECTIVE DATE OF 1986 AMENDMENT

Section 4011(d) of Pub. L. 99-272 provided that: "The amendments

made by subsections (a) and (c) [amending this section and enacting

provisions set out as a note under section 797b of this title]

shall take effect on the date of enactment of this Act [Apr. 7,

1986], and the amendment made by subsection (b) [amending this

section] shall be effective as of August 1, 1985."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 741, 797d, 797m of this

title.

-End-

-CITE-

45 USC Sec. 797d 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797d. Election and treatment of benefits

-STATUTE-

(a) Election

(1) Any employee who accepts any benefits under an agreement

entered into under section 797 (!1) of this title or a termination

allowance under section 797a of this title, shall, except as

provided in paragraph (2) of this subsection, be deemed to waive

any employee protection benefits otherwise available under any

other provision of law or any contract or agreement in effect on

August 13, 1981, except benefits under sections 797b and 797c of

this title, and shall be deemed to waive any cause of action for

any alleged loss of benefits resulting from the provisions of or

the amendments made by the Northeast Rail Service Act of 1981.

(2) Nothing in paragraph (1) of this subsection shall affect the

right of any employee described in such paragraph to benefits under

the Railroad Retirement Act of 1974 [45 U.S.C. 231 et seq.] or the

Railroad Unemployment Insurance Act [45 U.S.C. 351 et seq.].

(b) Treatment of benefits

Any benefits received by an employee under an agreement entered

into pursuant to section 797 (!1) of this title and any termination

allowance received under section 797a of this title shall be

considered compensation solely for purposes of -

(1) the Railroad Retirement Act of 1974 (45 U.S.C. 231 et

seq.); and

(2) determining the compensation received by such employee in

any base year under the Railroad Unemployment Insurance Act (45

U.S.C. 351 et seq.).

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 705, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 664.)

-REFTEXT-

REFERENCES IN TEXT

Section 797 of this title, referred to in subsecs. (a)(1) and

(b), was repealed by Pub. L. 99-509, title IV, Sec. 4024(c), Oct.

21, 1986, 100 Stat. 1904, effective on the sale date (Apr. 2,

1987).

The Northeast Rail Service Act of 1981, referred to in subsec.

(a)(1), is subtitle E (Secs. 1131-1169) of title XI of Pub. L.

97-35, Aug. 13, 1981, 95 Stat. 643, as amended. For complete

classification of this Act to the Code, see Short Title note set

out under section 1101 of this title and Tables.

The Railroad Retirement Act of 1974, referred to in subsecs.

(a)(2) and (b)(1), is act Aug. 29, 1935, ch. 812, as amended

generally by Pub. L. 93-445, title I, Sec. 101, Oct. 16, 1974, 88

Stat. 1305, which is classified generally to subchapter IV (Sec.

231 et seq.) of chapter 9 of this title. For further details and

complete classification of this Act to the Code, see Codification

note set out preceding section 231 of this title, section 231t of

this title, and Tables.

The Railroad Unemployment Insurance Act, referred to in subsecs.

(a)(2) and (b)(2), is act June 25, 1938, ch. 680, 52 Stat. 1094, as

amended, which is classified principally to chapter 11 (Sec. 351 et

seq.) of this title. For complete classification of this Act to the

Code, see section 367 of this title and Tables.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

45 USC Sec. 797e 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797e. Assignment of work

-STATUTE-

(a) General

With respect to any craft or class of employees not covered by a

collective bargaining agreement that provides for a process

substantially equivalent to that provided for in this section, the

Corporation shall have the right to assign, allocate, reassign,

reallocate, and consolidate work formerly performed on the rail

properties acquired pursuant to the provisions of this chapter from

a railroad in reorganization to any location, facility, or position

on its system if it does not remove such work from coverage of a

collective bargaining agreement and does not infringe upon the

existing classification of work rights of any craft or class of

employees at the location or facility to which such work is

assigned, allocated, reassigned, reallocated, or consolidated.

Prior to the exercise of authority under this subsection, the

Corporation shall negotiate an agreement with the representatives

of the employees involved permitting such employees the right to

follow their work.

(b) Expiration

The authority granted by this section shall apply only for as

long as benefits are provided under this subchapter with funds made

available under section 797l (!1) of this title.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 706, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 665.)

-REFTEXT-

REFERENCES IN TEXT

Section 797l of this title, referred to in subsec. (b), was

repealed by Pub. L. 99-509, title IV, Sec. 4033(a)(2), Oct. 21,

1986, 100 Stat. 1908, and a new section 797l of this title was

subsequently added by Pub. L. 104-88, Sec. 327(5).

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 741 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

45 USC Sec. 797f 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797f. Contracting out

-STATUTE-

All work in connection with the operation or services provided by

the Corporation on the rail lines, properties, equipment, or

facilities acquired pursuant to the provisions of this chapter and

the maintenance, repair, rehabilitation, or modernization of such

lines, properties, equipment, or facilities which has been

performed by practice or agreement in accordance with provisions of

the existing contracts in effect with the representatives of the

employees of the classes or crafts involved shall continue to be

performed by the Corporation's employees, including employees on

furlough. Should the Corporation lack a sufficient number of

employees, including employees on furlough, and be unable to hire

additional employees, to perform the work required, it shall be

permitted to subcontract that part of such work which cannot be

performed by its employees, including those on furlough, except

where agreement by the representatives of the employees of the

classes or crafts involved is required by applicable

collective-bargaining agreements. The term "unable to hire

additional employees" as used in this section contemplates

establishment and maintenance by the Corporation of an

apprenticeship, training, or recruitment program to provide an

adequate number of skilled employees to perform the work.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 707, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 665.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 741 of this title.

-End-

-CITE-

45 USC Sec. 797g 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797g. New collective-bargaining agreements

-STATUTE-

(a) Agreement

Not later than 60 days after the effective date of any conveyance

pursuant to the provisions of this chapter, the representatives of

the various classes or crafts of employees of a railroad in

reorganization involved in a conveyance and representatives of the

Corporation shall commence negotiation of a new single collective

bargaining agreement for each class and craft of employees covering

the rate of pay, rules, and working conditions of employees who are

the employees of the Corporation. Such collective bargaining

agreement shall include appropriate provisions concerning rates of

pay, rules, and working conditions, but shall not, before April 1,

1984, include any provisions for job stabilization which may exceed

or conflict with those established herein. Negotiations with

respect to such single collective bargaining agreement, and any

successor thereto, shall be conducted systemwide.

(b) Procedure

(1) Any procedure for finally determining the components of the

first single collective bargaining agreement for any class or

craft, agreed upon before August 13, 1981, shall be completed no

later than 45 days after August 13, 1981. Such agreed upon

procedure shall be deemed to satisfy the requirements of sections

157 and 158 of this title. The National Mediation Board shall

appoint any person as provided for by such agreements.

(2) Nothing in this section shall be construed to require the

parties to enter into a new single collective bargaining agreement

if the agreement between the parties in effect immediately prior to

August 13, 1981, complied with section 774(d) (!1) of this title as

in effect immediately prior to such date.

(c) Railway Labor Act notices

Employees of the Corporation may not serve notices under section

156 of this title for the purpose of negotiating job stabilization

or other protective agreements with the Corporation until after

April 1, 1984.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 708, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 665.)

-REFTEXT-

REFERENCES IN TEXT

Section 774 of this title, referred to in subsec. (b)(2), was

repealed by Pub. L. 97-35, title XI, Sec. 1144(a)(1), Aug. 13,

1981, 95 Stat. 669.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 741, 797m of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

45 USC Sec. 797h 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797h. Employee and personal injury claims

-STATUTE-

(a) Liability for employee claims

In all cases of claims, prior to April 1, 1976, by employees,

arising under the collective bargaining agreements of the railroads

in reorganization in the Region, and subject to section 153 of this

title, the Corporation, the National Railroad Passenger

Corporation, or an acquiring carrier, as the case may be, shall

assume responsibility for the processing of any such claims, and

payment of those which are sustained or settled on or subsequent to

the date of conveyance, under section 743(b)(1) of this title, and

shall be entitled to direct reimbursement from the Association

pursuant to section 721(h) of this title, to the extent that such

claims are determined by the Association to be the obligation of a

railroad in reorganization in the Region. Any liability of an

estate of a railroad in reorganization to its employees which is

assumed, processed, and paid pursuant to this subsection by the

Corporation, the National Railroad Passenger Corporation, or an

acquiring carrier shall remain the preconveyance obligation of the

estate of such railroad for purposes of section 721(h)(1) of this

title. The Corporation, the National Railroad Passenger

Corporation, an acquiring carrier, or the Association, as the case

may be, shall be entitled to a direct claim as a current expense of

administration, in accordance with the provisions of section 721(h)

of this title (other than paragraph (4)(A) thereof), for

reimbursement (including costs and expenses of processing such

claims) from the estate of the railroad in reorganization on whose

behalf such obligations are discharged or paid. In those cases in

which claims for employees were sustained or settled prior to such

date of conveyance, it shall be the obligation of the employees to

seek satisfaction against the estate of the railroads in

reorganization which were their former employers.

(b) Assumption of personal injury claims

All cases or claims by employees or their personal

representatives for personal injuries or death against a railroad

in reorganization in the Region arising prior to the date of

conveyance of rail properties, pursuant to section 743 of this

title, shall be assumed by the Corporation or an acquiring

railroad, as the case may be. The Corporation or the acquiring

railroad shall process and pay any such claims that are sustained

or settled, and shall be entitled to direct reimbursement from the

Association pursuant to section 721(h) of this title, to the extent

that such claims are determined by the Association or its successor

authority to be the obligation of such railroad. Any liability of

an estate of a railroad in reorganization which is assumed,

processed, and paid, pursuant to this subsection, by the

Corporation or an acquiring railroad shall remain the preconveyance

obligation of the estate of such railroad for purposes of section

721(h)(1) of this title. The Corporation, an acquiring railroad, or

the Association, as the case may be, shall be entitled to a direct

claim as a current expense of administration, in accordance with

the provisions of section 721(h) of this title (other than

paragraph (4)(A) thereof), for reimbursement (including costs and

expenses of processing such claims) from the estate of the railroad

in reorganization on whose behalf such obligations were discharged

or paid.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 709, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 666.)

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 741 of this title.

-End-

-CITE-

45 USC Sec. 797i 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797i. Limitations on liability

-STATUTE-

(a) Federal Government

The liability of the United States under an agreement entered

into or benefit schedule prescribed under section 797 (!1) of this

title or for payment of a termination allowance under section 797a

of this title shall be limited to amounts appropriated under

section 797l (!1) of this title.

(b) The Corporation

(1) The Corporation, Amtrak Commuter, and commuter authorities

shall incur no liability under an agreement entered into or benefit

schedule prescribed under section 797 (!1) of this title or for the

payment of a termination allowance under section 797a of this

title.

(2) Notwithstanding any other provision of law, until April 1,

1984, the Corporation shall have no liability for employee

protection in the event of a sale of any asset to a purchaser, and

such purchaser shall assume the liability for the application of

employee protection conditions imposed by the Commission for all

employees adversely affected by such sale.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 710, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 667.)

-REFTEXT-

REFERENCES IN TEXT

Section 797 of this title, referred to in subsecs. (a) and

(b)(1), was repealed by Pub. L. 99-509, title IV, Sec. 4024(c),

Oct. 21, 1986, 100 Stat. 1904, effective on the sale date (Apr. 2,

1987).

Section 797l of this title, referred to in subsec. (a), was

repealed by Pub. L. 99-509, title IV, Sec. 4033(a)(2), Oct. 21,

1986, 100 Stat. 1908, and a new section 797l of this title was

subsequently added by Pub. L. 104-88, Sec. 327(5).

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION AND TRANSFER OF

FUNCTIONS

Interstate Commerce Commission abolished and functions of

Commission transferred, except as otherwise provided in Pub. L.

104-88, to Surface Transportation Board effective Jan. 1, 1996, by

section 702 of Title 49, Transportation, and section 101 of Pub. L.

104-88, set out as a note under section 701 of Title 49. References

to Interstate Commerce Commission deemed to refer to Surface

Transportation Board, a member or employee of the Board, or

Secretary of Transportation, as appropriate, see section 205 of

Pub. L. 104-88, set out as a note under section 701 of Title 49.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 741 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-

-CITE-

45 USC Sec. 797j 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797j. Preemption

-STATUTE-

No State may adopt or continue in force any law, rule,

regulation, order, or standard requiring the Corporation to employ

any specified number of persons to perform any particular task,

function, or operation, or requiring the Corporation to pay

protective benefits to employees, and no State in the Region may

adopt or continue in force any such law, rule, regulation, order,

or standard with respect to any railroad in the Region.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 711, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 667; amended Pub. L.

103-272, Sec. 7(b), July 5, 1994, 108 Stat. 1379.)

-MISC1-

AMENDMENTS

1994 - Pub. L. 103-272 struck out ", the National Railroad

Passenger Corporation, or the Amtrak Commuter Services Corporation"

before "to employ any".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 741 of this title.

-End-

-CITE-

45 USC Sec. 797k 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797k. Factfinding panel

-STATUTE-

(a) Purpose

The Corporation shall enter into collective bargaining agreements

with its employees which provide for the establishment of one or

more advisory factfinding panels, chaired by a neutral expert in

industrial relations, for purposes of recommending changes in

operating practices and procedures which result in greater

productivity to the maximum extent practicable.

(b) National Mediation Board

The National Mediation Board shall appoint public members to any

panel established by an agreement entered into under this

subparagraph, and shall perform such functions contained in the

agreement as are consistent with the duties of such Board under the

Railway Labor Act [45 U.S.C. 151 et seq.].

(c) Other functions

The factfinding panel may, before making its report to the

parties, provide mediation, conciliation, and other assistance to

the parties.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 712, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 668.)

-REFTEXT-

REFERENCES IN TEXT

The Railway Labor Act, referred to in subsec. (b), is act May 20,

1926, ch. 347, 44 Stat. 577, as amended, which is classified

principally to chapter 8 (Sec. 151 et seq.) of this title. For

complete classification of this Act to the Code, see section 151 of

this title and Tables.

-End-

-CITE-

45 USC Sec. 797l 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797l. Class II railroads receiving Federal assistance

-STATUTE-

The Surface Transportation Board shall impose no labor protection

conditions in approving an application under section 10902 of title

49 when the application involves a Class II rail carrier which -

(1) is headquartered in a State, and operates in at least one

State, with a population of less than 1,000,000 persons, as

determined by the 1990 census; and

(2) has, as of January 1, 1996, been a recipient of repayable

Federal Railroad Administration assistance in excess of

$5,000,000.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 713, as added Pub. L. 104-88,

title III, Sec. 327(5)(A), formerly Sec. 327(5), Dec. 29, 1995, 109

Stat. 952, renumbered Pub. L. 104-287, Sec. 6(f)(4)(B), Oct. 11,

1996, 110 Stat. 3399.)

-MISC1-

PRIOR PROVISIONS

A prior section 797l, Pub. L. 93-236, title VII, Sec. 713, as

added Pub. L. 97-35, title XI, Sec. 1143(a), Aug. 13, 1981, 95

Stat. 668, authorized appropriations to carry out activities for

protection of employees of Consolidated Rail Corporation, prior to

repeal by Pub. L. 99-509, title IV, Sec. 4033(a)(2), Oct. 21, 1986,

100 Stat. 1908.

EFFECTIVE DATE

Section effective Jan. 1, 1996, see section 2 of Pub. L. 104-88,

set out as a note under section 701 of Title 49, Transportation.

-End-

-CITE-

45 USC Sec. 797m 01/06/03

-EXPCITE-

TITLE 45 - RAILROADS

CHAPTER 16 - REGIONAL RAIL REORGANIZATION

SUBCHAPTER VII - PROTECTION OF EMPLOYEES

-HEAD-

Sec. 797m. Arbitration

-STATUTE-

Any dispute or controversy with respect to the interpretation,

application, or enforcement of the provisions of this subchapter,

except sections 797b, 797c, 797g, and 797l (!1) of this title, or

section 1144 of the Northeast Rail Service Act of 1981, and except

those matters subject to judicial review under section 1152 of the

Northeast Rail Service Act of 1981 [45 U.S.C. 1105], which have not

been resolved within 90 days, may be submitted by either party to

an Adjustment Board for a final and binding decision thereon as

provided in section 153 of this title, in which event the burden of

proof on all issues so presented shall be on the Corporation, or

the Association, where appropriate.

-SOURCE-

(Pub. L. 93-236, title VII, Sec. 714, as added Pub. L. 97-35, title

XI, Sec. 1143(a), Aug. 13, 1981, 95 Stat. 668.)

-REFTEXT-

REFERENCES IN TEXT

Section 797l of this title, referred to in text, was repealed by

Pub. L. 99-509, title IV, Sec. 4033(a)(2), Oct. 21, 1986, 100 Stat.

1908, and a new section 797l of this title was subsequently added

by Pub. L. 104-88, Sec. 327(5).

Section 1144 of the Northeast Rail Service Act of 1981, referred

to in text, is section 1144 of Pub. L. 97-35, title XI, Aug. 13,

1981, 95 Stat. 669, which repealed subchapter V (Sec. 771 et seq.)

of this chapter and sections 910 and 1006 of this title and enacted

provisions set out as a note under section 771 of this title.

-TRANS-

ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF

FUNCTIONS AND SECURITIES

See section 1341 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 741 of this title.

-FOOTNOTE-

(!1) See References in Text note below.

-End-