-CITE-

49 USC CHAPTER 143 - FINANCE 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART B - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT

FORWARDERS

CHAPTER 143 - FINANCE

-HEAD-

CHAPTER 143 - FINANCE

-MISC1-

Sec.

14301. Security interests in certain motor vehicles.

14302. Pooling and division of transportation or earnings.

14303. Consolidation, merger, and acquisition of control of

motor carriers of passengers.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in section 113 of this title.

-End-

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49 USC Sec. 14301 01/06/03

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TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART B - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT

FORWARDERS

CHAPTER 143 - FINANCE

-HEAD-

Sec. 14301. Security interests in certain motor vehicles

-STATUTE-

(a) Definitions. - In this section, the following definitions

apply:

(1) Motor vehicle. - The term "motor vehicle" means a truck of

rated capacity (gross vehicle weight) of at least 10,000 pounds,

a highway tractor of rated capacity (gross combination weight) of

at least 10,000 pounds, a property-carrying trailer or

semitrailer with at least one load-carrying axle of at least

10,000 pounds, or a motor bus with a seating capacity of at least

10 individuals.

(2) Lien creditor. - The term "lien creditor" means a creditor

having a lien on a motor vehicle and includes an assignee for

benefit of creditors from the date of assignment, a trustee in a

case under title 11 from the date of filing of the petition in

that case, and a receiver in equity from the date of appointment

of the receiver.

(3) Security interest. - The term "security interest" means an

interest (including an interest established by a conditional

sales contract, mortgage, equipment trust, or other lien or title

retention contract, or lease) in a motor vehicle when the

interest secures payment or performance of an obligation.

(4) Perfection. - The term "perfection", as related to a

security interest, means taking action (including public filing,

recording, notation on a certificate of title, and possession of

collateral by the secured party), or the existence of facts,

required under law to make a security interest enforceable

against general creditors and subsequent lien creditors of a

debtor, but does not include compliance with requirements related

only to the establishment of a valid security interest between

the debtor and the secured party.

(b) Requirements for Perfection of Security Interest. - A

security interest in a motor vehicle owned by, or in the possession

and use of, a carrier registered under section 13902 of this title

and owing payment or performance of an obligation secured by that

security interest is perfected in all jurisdictions against all

general, and subsequent lien, creditors of, and all persons taking

a motor vehicle by sale (or taking or retaining a security interest

in a motor vehicle) from, that carrier when -

(1) a certificate of title is issued for a motor vehicle under

a law of a jurisdiction that requires or permits indication, on a

certificate or title, of a security interest in the motor vehicle

if the security interest is indicated on the certificate;

(2) a certificate of title has not been issued and the law of

the State where the principal place of business of that carrier

is located requires or permits public filing or recording of, or

in relation to, that security interest if there has been such a

public filing or recording; and

(3) a certificate of title has not been issued and the security

interest cannot be perfected under paragraph (2) of this

subsection, if the security interest has been perfected under the

law (including the conflict of laws rules) of the State where the

principal place of business of that carrier is located.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 103, Dec. 29, 1995, 109 Stat.

894.)

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PRIOR PROVISIONS

Provisions similar to those in this section were contained in

section 11304 of this title prior to the general amendment of this

subtitle by Pub. L. 104-88, Sec. 102(a).

EFFECTIVE DATE

Chapter effective Jan. 1, 1996, except as otherwise provided in

Pub. L. 104-88, see section 2 of Pub. L. 104-88, set out as a note

under section 701 of this title.

-End-

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49 USC Sec. 14302 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART B - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT

FORWARDERS

CHAPTER 143 - FINANCE

-HEAD-

Sec. 14302. Pooling and division of transportation or earnings

-STATUTE-

(a) Approval Required. - A carrier providing transportation

subject to jurisdiction under subchapter I of chapter 135 may not

agree or combine with another such carrier to pool or divide

traffic or services or any part of their earnings without the

approval of the Board under this section.

(b) Standards for Approval. - The Board may approve and authorize

an agreement or combination between or among motor carriers of

passengers, or between a motor carrier of passengers and a rail

carrier of passengers if the carriers involved assent to the

pooling or division and the Board finds that a pooling or division

of traffic, services, or earnings -

(1) will be in the interest of better service to the public or

of economy of operation; and

(2) will not unreasonably restrain competition.

(c) Procedure. -

(1) Application. - Any motor carrier of property may apply to

the Board for approval of an agreement or combination with

another such carrier to pool or divide traffic or any services or

any part of their earnings by filing such agreement or

combination with the Board not less than 50 days before its

effective date.

(2) Determination of importance and restraint on competition. -

Prior to the effective date of the agreement or combination, the

Board shall determine whether the agreement or combination is of

major transportation importance and whether there is substantial

likelihood that the agreement or combination will unduly restrain

competition. If the Board determines that neither of these 2

factors exists, it shall, prior to such effective date and

without a hearing, approve and authorize the agreement or

combination, under such rules and regulations as the Board may

issue, and for such consideration between such carriers and upon

such terms and conditions as shall be found by the Board to be

just and reasonable.

(3) Hearing. - If the Board determines either that the

agreement or combination is of major transportation importance or

that there is substantial likelihood that the agreement or

combination will unduly restrain competition, the Board shall

hold a hearing concerning whether the agreement or combination

will be in the interest of better service to the public or of

economy in operation and whether it will unduly restrain

competition and shall suspend operation of such agreement or

combination pending such hearing and final decision thereon.

After such hearing, the Board shall indicate to what extent it

finds that the agreement or combination will be in the interest

of better service to the public or of economy in operation and

will not unduly restrain competition and if assented to by all

the carriers involved, shall to that extent, approve and

authorize the agreement or combination, under such rules and

regulations as the Board may issue, and for such consideration

between such carriers and upon such terms and conditions as shall

be found by the Board to be just and reasonable.

(4) Special rules for household goods carriers. - In the case

of an application for Board approval of an agreement or

combination between a motor carrier providing transportation of

household goods and its agents to pool or divide traffic or

services or any part of their earnings, such agreement or

combination shall be presumed to be in the interest of better

service to the public and of economy in operation and not to

restrain competition unduly if the practices proposed to be

carried out under such agreement or combination are the same as

or similar to practices carried out under agreements and

combinations between motor carriers providing transportation of

household goods to pool or divide traffic or service of any part

of their earnings approved by the Interstate Commerce Commission

before January 1, 1996.

(5) Streamlining and simplifying. - The Board shall streamline,

simplify, and expedite, to the maximum extent practicable, the

process (including any paperwork) for submission and approval of

applications under this section for agreements and combinations

between motor carriers providing transportation of household

goods and their agents.

(d) Conditions. - The Board may impose conditions governing the

pooling or division and may approve and authorize payment of a

reasonable consideration between the carriers.

(e) Initiation of Proceeding. - The Board may begin a proceeding

under this section on its own initiative or on application.

(f) Effect of Approval. - A carrier may participate in an

arrangement approved by or exempted by the Board under this section

without the approval of any other Federal, State, or municipal

body. A carrier participating in an approved or exempted

arrangement is exempt from the antitrust laws and from all other

law, including State and municipal law, as necessary to let that

person carry out the arrangement.

(g) Continuation of Existing Agreements. - Any agreements in

operation under the provisions of this title on January 1, 1996,

that are succeeded by this section shall remain in effect until

further order of the Board.

(h) Definitions. - In this section, the following definitions

apply:

(1) Household goods. - The term "household goods" has the

meaning such term had under section 10102(11) of this title, as

in effect on December 31, 1995.

(2) Transportation. - The term "transportation" means

transportation that would be subject to the jurisdiction of the

Interstate Commerce Commission under subchapter II of chapter 105

of this title, as in effect on December 31, 1995, if such

subchapter were still in effect.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 103, Dec. 29, 1995, 109 Stat.

895; amended Pub. L. 104-287, Sec. 5(37), Oct. 11, 1996, 110 Stat.

3392.)

-MISC1-

HISTORICAL AND REVISION NOTES

PUB. L. 104-287, SEC. 5(37)(A), (B)

This sets out the effective date of 49:14302.

PUB. L. 104-287, SEC. 5(37)(C), (D)

This amends 49:14302(h)(1) and (2) for clarity and consistency.

-REFTEXT-

REFERENCES IN TEXT

The antitrust laws, referred to in subsec. (f), are classified

generally to section 1 et seq. of Title 15, Commerce and Trade.

Section 10102(11) of this title, referred to in subsec. (h)(1),

was omitted and a new section 10102 enacted in the general

amendment of this subtitle by Pub. L. 104-88, title I, Sec. 102(a),

Dec. 20, 1995, 109 Stat. 804, 806, effective Jan. 1, 1996.

Subchapter II of chapter 105 of this title, referred to in

subsec. (h)(2), was omitted in the general amendment of this

subtitle by Pub. L. 104-88, title I, Sec. 102(a), Dec. 29, 1995,

109 Stat. 804, effective Jan. 1, 1996.

-MISC2-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

sections 11341 and 11342 of this title prior to the general

amendment of this subtitle by Pub. L. 104-88, Sec. 102(a).

AMENDMENTS

1996 - Subsec. (c)(4). Pub. L. 104-287, Sec. 5(37)(A),

substituted "January 1, 1996" for "the effective date of this

section".

Subsec. (g). Pub. L. 104-287, Sec. 5(37)(B), substituted "January

1, 1996," for "the effective date of this section".

Subsec. (h)(1). Pub. L. 104-287, Sec. 5(37)(C), substituted

"December 31, 1995" for "the day before the effective date of this

section".

Subsec. (h)(2). Pub. L. 104-287, Sec. 5(37)(D), substituted

"December 31, 1995" for "the day before such effective date".

-TRANS-

ABOLITION OF INTERSTATE COMMERCE COMMISSION

Interstate Commerce Commission abolished by section 101 of Pub.

L. 104-88, set out as a note under section 701 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 13541, 24305 of this

title.

-End-

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49 USC Sec. 14303 01/06/03

-EXPCITE-

TITLE 49 - TRANSPORTATION

SUBTITLE IV - INTERSTATE TRANSPORTATION

PART B - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT

FORWARDERS

CHAPTER 143 - FINANCE

-HEAD-

Sec. 14303. Consolidation, merger, and acquisition of control of

motor carriers of passengers

-STATUTE-

(a) Approval Required. - The following transactions involving

motor carriers of passengers subject to jurisdiction under

subchapter I of chapter 135 may be carried out only with the

approval of the Board:

(1) Consolidation or merger of the properties or franchises of

at least 2 carriers into one operation for the ownership,

management, and operation of the previously separately owned

properties.

(2) A purchase, lease, or contract to operate property of

another carrier by any number of carriers.

(3) Acquisition of control of a carrier by any number of

carriers.

(4) Acquisition of control of at least 2 carriers by a person

that is not a carrier.

(5) Acquisition of control of a carrier by a person that is not

a carrier but that controls any number of carriers.

(b) Standard for Approval. - The Board shall approve and

authorize a transaction under this section when it finds the

transaction is consistent with the public interest. The Board shall

consider at least the following:

(1) The effect of the proposed transaction on the adequacy of

transportation to the public.

(2) The total fixed charges that result from the proposed

transaction.

(3) The interest of carrier employees affected by the proposed

transaction.

The Board may impose conditions governing the transaction.

(c) Determination of Completeness of Application. - Within 30

days after the date on which an application is filed under this

section, the Board shall either publish a notice of the application

in the Federal Register or reject the application if it is

incomplete.

(d) Comments. - Written comments about an application may be

filed with the Board within 45 days after the date on which notice

of the application is published under subsection (c).

(e) Deadlines. - The Board shall conclude evidentiary proceedings

by the 240th day after the date on which notice of the application

is published under subsection (c). The Board shall issue a final

decision by the 180th day after the conclusion of the evidentiary

proceedings. The Board may extend a time period under this

subsection; except that the total of all such extensions with

respect to any application shall not exceed 90 days.

(f) Effect of Approval. - A carrier or corporation participating

in or resulting from a transaction approved by the Board under this

section, or exempted by the Board from the application of this

section pursuant to section 13541, may carry out the transaction,

own and operate property, and exercise control or franchises

acquired through the transaction without the approval of a State

authority. A carrier, corporation, or person participating in the

approved or exempted transaction is exempt from the antitrust laws

and from all other law, including State and municipal law, as

necessary to let that person carry out the transaction, hold,

maintain, and operate property, and exercise control or franchises

acquired through the transaction.

(g) Limitation on Applicability. - This section shall not apply

to transactions involving carriers whose aggregate gross operating

revenues were not more than $2,000,000 during a period of 12

consecutive months ending not more than 6 months before the date of

the agreement of the parties.

(h) Applicability of Certain Provisions. - When the Board

approves and authorizes a transaction under this section in which a

person not a carrier providing transportation subject to

jurisdiction under subchapter I of chapter 135 acquires control of

at least 1 carrier subject to such jurisdiction, the person is

subject, as a carrier, to the following provisions of this title

that apply to the carrier being acquired by that person, to the

extent specified by the Board: sections 504(f), 14121-14123,

14901(a), and 14907.

(i) Interim Approval. - Pending determination of an application

filed under this section, the Board may approve, for a period of

not more than 180 days, the operation of the properties sought to

be acquired by the person proposing in the application to acquire

those properties, when it appears that failure to do so may result

in destruction of or injury to those properties or substantially

interfere with their future usefulness in providing adequate and

continuous service to the public. Transportation provided by a

motor carrier under a grant of approval under this subsection is

subject to this part.

(j) Supplemental Orders. - When cause exists, the Board may issue

appropriate orders supplemental to an order made in a proceeding

under this section.

-SOURCE-

(Added Pub. L. 104-88, title I, Sec. 103, Dec. 29, 1995, 109 Stat.

897.)

-REFTEXT-

REFERENCES IN TEXT

The antitrust laws, referred to in subsec. (f), are classified

generally to section 1 et seq. of Title 15, Commerce and Trade.

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in

sections 11341, 11343, 11344, 11345a, 11348, 11349, and 11351 of

this title prior to the general amendment of this subtitle by Pub.

L. 104-88, Sec. 102(a).

-End-