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 90 STAT. 56

Review.

Appropriation authorization.

PUBLIC LAW 94-210—FEB. 5, 1976 identify and define the following items as they pertain to each facet of rail operations: "(i) operating and nonoperating revenue accounts; " (ii) direct cost accounts for determining fixed and variable cost for materials, labor, and overhead components of operating expenses and the assignment of such costs to various functions, services, or activities, including maintenance-of-way, maintenance of equipment (locomotive and car), transportation (train, yard and station, and accessorial services), and general and administrative expenses; and "(iii) indirect cost accounts for determining fixed, common, joint, and constant costs, including the cost of capital, and the method for the assignment of such costs to various functions, services, or activities. " (c) The accounting system established pursuant to this paragraph shall be, in accordance with generally accepted accounting principles uniformly applied to all common carriers by railroad subject to this part, and all reports shall include any disclosure considered appropriate under generally accepted accounting principles or the requirements of the Commission or of the Securities and Exchange Commission. The Commission shall, notwithstanding any other provision of this section, to the extent possible, devise the system of accounts to be cost effective, nonduplicative, and compatible with the present and desired managerial and responsibility accounting requirements of the carriers, and to give due consideration to appropriate economic principles. The Commission should attempt, to the extent possible, to require that such data be reported or otherwise disclosed only for essential regulatory purposes, including rate change requests, abandonment of facilities requests, responsibility for peaks in demand, cost of service, and issuance of securities. "(d) In order that the accounting system established pursuant to this paragraph continue to conform to generally accepted accounting principles, compatible with the managerial responsibility accounting requirements of carriers, and in compliance with other objectives set forth in this section, the Commission shall periodically, but not less than once every 5 years, review such accounting system and revise it as necessary. "(e) There are authorized to be appropriated to the Commission for purposes of carrying out the provisions of this paragraph such sums as may be necessary, not to exceed $1,000,000, to be available for— "(i) procuring temporary and intermittent services as authorized by section 3109(b) of title 5, United States Code, but at rates for individuals not to exceed $250 per day plus expenses; and "(ii) entering into contracts or cooperative agreements with any public agency or instrumentality or with any person, firm, association, corporation, or institution, without regard to section 3709 of the Revised Statutes of the United States (41 U.S.C. 5).". SECURITIES

"Interest in a railroad equipment trust.

SEC. 308. (a)(1) Paragraph (6) of section 3(a) of the Securities Act of 1933 (15 U.S.C. 77c(a)(6)) is amended to read as follows: "(6) Any security issued by a motor carrier the issuance of which is subject to the provisions of section 214 of the Interstate Commerce Act, or any interest in a railroad equipment trust. For purposes of this paragraph 'interest in a railroad equipment trust' means any interest in an equipment trust, lease, conditional sales contract, or other

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 PUBLIC LAW 94-210—FEB. 5, 1976 similar arrangement entered into, issued, assumed, guaranteed by, or for the benefit of, a common carrier to finance the acquisition of rolling stock, including motive power;". (2) The second sentence of section 19(a) of such Act (15 U.S.C. 7Ts(a)) is amended by striking out "j but insofar as they relate to any common carrier subject to the provisions of section 20 of the Interstate Commerce Act, as amended, the rules and regulations of the Commission with respect to accounts shall not be inconsistent with the requirements imposed by the Interstate Commerce Commission under authority of such section 20". (3) Section 214 of the Interstate Commerce Act (49 U.S.C. 314) is amended by striking out "That the exemption" and all that follows through ^'And provided further,''\ (b) Section 13(b) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(b)) is amended by striking out ", and, in the case of carriers subject to the provisions of section 20 of the Interstate Commerce Act" and all that follows in such subsection, and inserting in lieu thereof "(except that such rules and regulations of the Commission may be inconsistent with such requirements to the extent that the Commission determines that the public interest or the protection of investors so requires).". (c) Paragraph (7) of section 3(c) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(7)) is amended to read as follows: "(7) Any company (A) which is subject to regulation under section 214 of the Interstate Commerce Act, except that this exception shall not apply to a company which the Commission finds and by order declares to be primarily engaged, directly or indirectly, in the business of investing, reinvesting, owning, holding, or trading in securities, or (B) whose entire outstanding stock is owned or controlled by a company excepted under clause (A) hereof, if the assets of the controlled company consist substantially of securities issued by companies which are sub3ect to regulation under section 214 of the Interstate Commerce Act,". (d)(1) The amendments made by subsection (a) of this section shall take effect on the 60th day after the date of enactment of this Act, but shall not apply to any bona fide offering of a security made by the issuer, or by or through an underwriter, before such 60th day. (2) The amendment made by subsection (c) of this section shall not apply to any report by any person with respect to a fiscal year of such person which began before the date of enactment of this Act. (3) The amendment made by subsection (c) of this section shall take effect on the 60th day after the date of enactment of this Act. RAIL SERVICES P L A N N I N G OFFICE

SEC. 309. Section 205 of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 715) is amended to read as follows: "RAIL SERVICES P L A N N I N G OFFICE

"SEC. 205. (a) ESTABLISHMENT.—The Rail Services Planning Office is established as an office in the Commission. The Office shall function continuously pursuant to the provisions of this Act, and shall be administered by a director. "(b) DIRECTOR.—The Director of the Office shall be appointed for a term of 6 years by the Chairman of the Commission with the concurrence of 5 members of the Commission. He shall be appointed and compensated, without regard to the provisions of title 5, United States

90 STAT. 57

49 USC 20

15 USC 77c.

Effective date. 15 USC 77c note.

15 USC 80a-3 note. Effective date. 15 USC 80a-3 note.

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 90 STAT. 58

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^

'

^ Ante, p. 31.

' '

PUBLIC LAW 94-210—FEB. 5, 1976 Code, governing appointments in the competitive service, classification, and General Schedule pay rates, at a rate not in excess of the maximum rate for GS-18 of the General Schedule under section 5332 of such title. The Director of the Office shall administer and be responsible for the discharge of the functions and duties of the Office from the date he takes office unless removed for cause by the Commission. "(c) POWERS.—The Director of the Office is subject to the direction of, and shall report to, such member of the Commission as the Chairman thereof shall designate. The Chairman may designate himself as that member. Such Director is authorized, with the concurrence of such member or (in case of disagreement) the Chairman of the Commission, to enter into, without regard to section 3709 of the Revised Statutes of the United States (41 U.S.C. 5) such contracts, leases, cooperative agreements, or other transactions as may be necessary in the conduct of the functions and duties of the Office with any person (including a government entity). Each department, agency, and instrumentality of the executive branch of the Federal Government and each independent regulatory agency of the United States is authorized, and shall give careful consideration to a request, to furnish to the Director of the Office, upon written request, on a reimbursable basis or otherwise, such assistance as the Director deems necessary to carry out the functions and duties of the Office. Such assistance includes transfer of personnel with their consent and without prejudice to their position and rating. "(d) DUTIES.—In addition to its duties and responsibilities under other provisions of this Act and under the Railroad Revitalization and Regulatory Reform Act of 1976, the Office shall— "(1) assist the Commission in studying and evaluating any proposal, submitted to the Commission pursuant to section 5(2) or (3) of the Interstate Commerce Act (49 U.S.C. 5 (2) or (3)), for a merger, consolidation, unification or coordination project, joint use of tracks or other facilities, or acquisition or sale of assets, which involves any common carrier by railroad subject to part I of such Act; "(2) assist the Commission in developing, with respect to economic regulation of transportation, policies which are likely to result in a more competitive, energy-efficient, and coordinated transportation system which utilizes each mode of transportation to its maximum advantage to meet the transportation service needs of the Nation; "(3) assist States and local and regional transportation agencies in making determinations whether to provide rail service continuation subsidies to maintain in operation particular rail properties, by establishing criteria for determining whether particular rail properties are suitable for rail service continuation subsidies, with such criteria to include the following considerations: rail properties are suitable if the cost of the required subsidy for such properties per year to the taxpayers is less than (A) the cost of termination of rail service over such properties measured by increased fuel consumption and operational costs for alternative modes of transportation, (B) the cost to the gross national product in terms of reduced output of goods and services, (C) the cost of relocating or assisting through unemployment, retraining, and welfare benefits to individuals and firms adversely affected thereby, and (D) the cost to the environment measured by damage caused by increased pollution; "(4) conduct an ongoing analysis of the national rail transportation needs, evaluate the policies, plans, and programs of the

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 PUBLIC LAW 9 4 - 2 1 0 — F E B. 5, 1976 Commission on the basis of such analysis, and advise the Commission of the results of such evaluation; " (5) within 180 days after the date of enactment of the Railroad Revitalization and Regulatory Reform Act of 1976, issue additional regulations, after conducting a proceeding in accordance with the provisions of section 553 of title 5, United States Code, which contain— " (A) standards for the computation of subsidies for rail passenger service (except passenger service compensation disputes subject to the jurisdiction of the Commission under section 402(a) of the Rail Passenger Service Act (45 U.S.C. 5 6 2 (a))), which are consistent with the compensation principles described in the final system plan and which avoid cross subsidization among commuter, intercity, and freight lail services; and " (B) standards for the determination of emergency commuter rail passenger service operating payments pursuant to section 17 of the Urban Mass Transportation Act of 1964; " (6) determine and publish, and from time to time revise and reissue, standards for determining (A) the 'revenue attributable to the rail properties', (B) the 'avoidable costs of providing service', (C) a'reasonable return on the v a l u e, ' and (D) a'reasonable management fee', as those phrases are used in section 304 of this Act, after a proceeding in accordance with the provisions of section 553 of title 5, United States Code; and " (7) employ and utilize the services of attorneys and such other personnel as may be required in order properly to protect the interests of those communities and users of rail service which, for whatever reason (such as their size or location) might not otherwise be adequately represented in the course of the reorganization process under this Act, until the assumption of such duties by the Office of Rail Public Counsel pursuant to section 27(4)(d) of the Interstate Commerce Act (49 U.S.C. 27 (4)(d)). " (e) ADDITIONAL D U T I E S. — (1) W i t h i n 270 days after the date of enactment of the Railroad Revitalization and Regulatory Reform Act of 1976, the Office shall issue additional regulations, after conducting a proceeding in accordance with section 553 of title 5, United States Code. Such regulations shall (A) develop an accounting system which will permit the collection and publication by the Corporation or by profitable railroads providing service over lines scheduled for abandonment, of information necessary for an accurate determination of the attributable revenues, avoidable costs, and operations of light density lines as operating and economic units, and (B) determine the 'avoidable costs of providing rail freight service', as that phrase is used in section l a (6)(a) (ii)(A) of the Interstate Commerce Act. The Office may, at any time, revise and republish the standards and regulations required by this section to incorporate changes made necessary by the accounting system developed pursuant to this subsection. " (2) Upon the request of a State in the region, within 90 days after the date of enactment of the Railroad Revitalization and Regulatory Reform Act of 1976, the Office shall prepare and publish an evaluation of the economic viability of any or all light density lines within such State which are not designated for inclusion in the final system plan. Such an evaluation shall include an analysis of the actions which may be necessary to make the operation of rail services over any such line economical. The results of each such evaluation shall be trans-

90 STAT. 59

Regulations, ^i^e. P- 31.

.. ' Post, p. 143.

Regulations,

Post, p. 127.

Evaluation,

Publication in Federal Register.

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 90 STAT. 60

PUBLIC LAW 94-210—FEB. 5, 1976 mitted to the requesting State and published in the Federal Register, not later than 1 year after the date such request is received by the Office.". EQUITABLE DISTRIBUTION OF CARS FOR U N I T TRAIN SERVICE

"Unit-train service."

SEC. 310. Section 1(12) of the Interstate Commerce Act (49 U.S.C. 1(12)), is amended by adding at the end thereof: "In applying the provisions of this paragraph, unit-train service and non-unit-train service shall be considered separate and distinct classes of service, and a distinction shall be made between these two classes of service and between the cars used in each class of service; questions of the justness and reasonableness of, or discrimination or preference or prejudice or advantage or disadvantage in, the distribution of cars shall be determined within each such class and not between them, notwithstanding any other provision of section 1, 2, or 3 of this Act (49 U.S.C. 1, 2, or 3), and of section 1, 2, or 3 of the Elkins Act (49 U.S.C. 41, 42, or 43). Coal cars supplied by shippers or receivers shall not be considered a part of such carrier's fleet or otherwise counted in determining questions of distribution or car count under this paragraph or any provision of law referred to in this section. As used in this paragraph, the term 'unit-train service', means the movement of a single shipment of coal of not less than 4,500 tons, tendered to one carrier, on one bill of lading, at one origin, on one day, and destined to one consignee, at one plant, at one destination, via one route.". APPROPRIATIONS REQUEST

Transmittal to Congress.

SEC. 311. Section 201 of the Budget and Accounting Act, 1921 (31 U.S.C. 11) is amended by adding at the end thereof the following new subsection: "(j) Whenever the Interstate Commerce Commission submits any budget estimate or request, other budget information (including manpower needs), legislative recommendations prepared testimony for congressional hearings, or comments on legislation, to the President or to the Office of Management and Budget, it shall concurrently transmit a copy of such estimate or request to the Congress. No officer or agency of the United States shall have any authority to prohibit, impose conditions on, or in any Avay impair the free communication by such Commission with the Congress, its committees, or any of the Members of the Congress with respect to any budget estimate or request of the Commission.". LAW REVISION

49 USC 1 note. 49 USC prec. note. Final draft, submittal to Congress.

SEC. 312. The Commission shall prepare, or shall cause to be prepared, in whole or in part by consultants, a proposed modernization and revision of the Interstate Commerce Act, and a proposed codification of all Acts supplementary to the Interstate Commerce Act. The Commission shall submit the final draft thereof to the Congress within 2 years after the date of enactment of this Act. The final draft shall include comments on each proposed provision, significant alternative provisions considered but not recommended, and such other information as may be useful to the Congress. The final draft shall be designed to simplify the present law and to harmonize regulation among the several modes of transportation subject to regulation under the Interstate Commerce Act.

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 PUBLIC LAW 94-210—FEB. 5, 1976

90 STAT. 61

TITLE IV—MERGERS AND CONSOLIDATIONS RESPONSIBILITIES OF THE SECRETARY

SEC. 401. The Department of Transportation Act (49 U.S.C. 1651 et seq.) is amended by inserting after section 4 thereof the following new section 5: a RAIL SERVICES

"SEC. 5. (a) The Secretary may develop and make available to interested persons feasible plans, proposals, and recommendations for mergers, consolidations, reorganizations, and other unification or coordination projects for rail services (including, but not limited to, arrangements for joint use of tracks or other facilities and any acquisition or sale of assets) which the Secretary believes would result in a rail system which is more efficient, consistent with the public interest. "(b) In order to achieve a more efficient, economical, and viable rail system in the private sector, the Secretary may, upon the request of any railroad and in accordance with subsections (a) through (e) of this section, assist in planning, negotiating, and effecting a unification or coordination of operations and facilities with respect to two or more railroads. "(c) The Secretary may conduct such studies as are deemed advisable to determine the potential cost savings and possible improvements in the quality of rail services which are likely to result from unification or coordination with respect to two or more railroads, through the elimination of duplicative or overlapping operations and facilities; the reduction of switching operations; utilization of the shortest, or the most efficient, and economical routes; the exchange of trackage rights; the combining of trackage and of terminal or other facilities; the upgrading of tracks and other facilities used by two or more railroads; reduction of administrative and other expenses; and any other measures likely to reduce costs and improve rail service. For purposes of studies conducted under this section and the study described in section 901 of the Railroad Re vital ization and Regulatory Reform Act of 1976, each railroad shall provide such information as may be requested by the Secretary in connection with the performance of functions under this section and such section 901. In furtherance of any of the functions or responsibilities of the Secretary under this section or such section 901, any officer or employee duly designated by the Secretary may obtain, from any railroad, information regarding the nature, kind, quality, origin, destination, consignor, consignee, and routing of property, without the consent of the consignor or consignee involved, notwithstanding the provisions of section 15(13) of the Interstate Commerce Act (49 U.S.C. 15(13)) and may, to the extent necessary or appropriate, exercise, with respect to any railroad, any of the powers described in section 203(c) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 713(c)), as provided therein, except that subpoenas shall be issued under the signature of the Secretary. "(d) When requested by one or more railroads, the Secretary may also hold conferences with respect to any proposed unification or coordination project. The Secretary may invite officers and directors of all affected railroads; representatives of employees of such railroads who may be affected; the Interstate Commerce Commission; appropriate State and local government officials, shippers, and consumer representatives; and representatives of the Federal Trade Commission and of the Attorney General to one or more such conferences with respect to such a proposal. The Secretary may mediate any dispute

49 USC 1654.

Studies,

Post, p. 147.

Subpoenas, Conferences,

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 90 STAT. 62

PUBLIC LAW 94-210—FEB. 5, 1976 which may arise in connection with any proposed unification or coordination project. Persons attending or represented at any such conference shall not be liable under the antitrust laws of the United States with respect to any discussion at such conference and as to any agreements reached at such conference, which are entered into with the approval of the Secretary in order to achieve or determine a plan of action to implement any such unification or coordination project. "(e) Whenever any railroad submits a proposal for a merger or other action the approval of which is subject to the jurisdiction of the Interstate Commerce Commission under section 5(2) of the Interstate Commerce Act (49 U.S.C. 5(2)), the Secretary may, if he has not already done so, conduct a study of such proposal in order to determine whether or not, in his judgment, such proposal is in accordance with the standards set forth in section 5(2)(c) of such Act (49 U.S.C. 5 (2)(c)). Whenever such proposal is the subject of an application and a proceeding before such Commission, the Secretary is authorized to appear before the Commission in any proceeding held with respect to such application.". MERGER PROCEDURE

SEC. 402. (a) Section 5(2)(f) of the Interstate Commerce Act (49 U.S.C. 5(2)(f)) is amended by inserting a new sentence immediately preceding the last sentence thereof as follows: "Such arrangement shall contain provisions no less protective of the interests of employees than those heretofore imposed pursuant to this subdivision and those established pursuant to section 405 of the Rail Passenger Service Act (45 U.S.a565).". (b) Section 5(2) of the Interstate Commerce Act (49 U.S.C. 5(2)) is amended by adding at the end thereof the following two new subdivisions: "(g) In any case arising under this paragraph which involves a common carrier by railroad, the Commission shall— Application. "(i) within 30 days after the date on which an application is filed with the Commission and after a certified copy of such appliPublication in cation is furnished to the Secretary of Tranportation, (A) publish Federal Register. notice thereof in the Federal Register, or (B) if such application is incomplete, reject such application by order, which order shall 49 USC 17. be deemed to be final under the provisions of section 17; Publication in "(ii) provide that written comments on an application, as to Federal Register. which such notice is published, may be filed within 45 days after the publication of such notice in the Federal Register; "(iii) require that copies of any such comments shall be served upon the Secretary of Transportation and the Attorney General, each of whom shall be afforded 15 days following the date of receipt thereof to inform the Commission whether he will intervene as a party to th« proceeding, and if so, to submit preliminary views on such application; " (iv) require that all other applications, which are inconsistent, in whole or in part, with such applications, and all petitions for inclusion in the transaction, shall be filed with the Commission and furnished to the Secretary of Transportation, within 90 days after the publication of notice of the application in the Federal Register; "(v) conclude any evidentiary proceedings within 240 days following the date of such publication of notice, except that in the case of an application involving the merger or control of two or more class I railroads, as defined by the Commission, the Com-

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 PUBLIC LAW 94-210—FEB. 5, 1976 mission shall conclude any evidentiary proceedings not more than 24 months following the date upon which notice of the application was published in the Federal Kegister; and "(vi) issue a final decision within 180 days following the date upon which the evidentiary proceeding is concluded. If the Commission fails to issiie a decision which is final within the meaning of section 17 within such 180-day period, it shall notify the Congress in writing of such failure and the reasons therefor. If the Commission determines that the due and timely execution of its functions under this paragraph so requires, or that an application brought under this paragraph is of major transportation importance, it may order that the case be referred directly (without an initial decision by a division, individiuil Commissioner, board, or administrative law judge) to the full Commission for a decision which is final within the meaning of section 17. "(h) The Secretary of Transportation may propose any modification of any transaction governed by this paragraph which involves a carrier by railroad. The Secretary shall have standing to appear before the Comipission in support of any such proposed modification.".

90 STAT. 63

Congressional notification.

EXPEDITED RAIUIOAD MERGER PROCEDURE

SEC. 403. (a) Section 5 of the Interstate Commerce Act (49 U.S.C. 5) is amended by redesignating paragraphs (3) through (16) thereof as paragraphs (4) through (17) thereof, respectively, and by inserting therein a new paragraph (3), as follows: "(3)(a) If a merger, consolidation, unification or coordination project (as described in section 5(c) of the Department of Transportation Act), joint use of tracks or other facilities, or acquisition or sale of assets, which involves any common carrier by railroad subject to this part, is proposed by an eligible party in accordance with subdivision (b) during the period beginning on the date of enactment of this paragraph and ending on December 31, 1981, the party seeking authority for the execution or implementation of such transaction may utilize the procedure set forth in this paragraph or in paragraph (2). "(b) Any transaction described in subdivision (a) may be proposed to the Commission by— "(i) the Secretary of Transportation (hereafter in this paragraph referred to as the 'Secretary'), with the consent of the common carriers by railroad subject to this part which are parties to such transaction; or "(ii) any such carrier which, not less than 6 months prior to such submission to the Commission, submitted such proposed transaction to the Secretary for evaluation pursuant to subdivision (f). "(c) Whenever a transaction described in subdivision (a) is pro- Application, posed under this paragraph, the proposing party shall submit an application for approval thereof to the Commission, in accordance with such requirements as to form, content, and documentation as the Commission may prescribe. Within 10 days after the date of receipt Notice. of such an application, the Commission shall send a notice of such proposed transaction to— " (i) the Governor of each State which may be affected, directly or indirectly, by such transaction if it is executed or implemented; " (ii) the Attorney General; " (iii) the Secretary of Labor; and "(iv) the Secretary (except where the Secretary is the proposing party).

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Page:United States Statutes at Large Volume 90 Part 1.djvu/114

 90 STAT. 64

Hearing.

Proposed transaction.

Publication in Federal Register.

Notice.

PUBLIC LAW 94-210—FEB. 5, 1976 The Commission shall accompany its notice to the Secretary with a request for the report of the Secretary pursuant to clause (v) of subdivision (f). Each such notice shall include a copy of such application; a summary of the proposed transaction involved, and the proposing party's reasons and public interest justifications therefor. "(d) The Commission shall hold a public hearing on each application submitted to it pursuant to subdivision (c), within 90 days after the date of receipt of such application. Such public hearing shall be held before a panel of the Commission duly designated for such purpose by the Commission. Such panel may utilize administrative law judges and the Rail Services Planning Office in such manner as it considers appropriate for the conduct of the hearing, the evaluation of such application and comments thereon, and the timely and reasonable determination of whether it is in the public interest to grant such application and to approve such proposed transaction pursuant to subdivision (g). Such panel shall complete such hearing within 180 days after the date of referral of such application to such panel, and it may, in order to meet such requirement, prescribe such rules and make such rulings as may tend to avoid unnecessary costs or delay. Such panel shall recommend a decision and certify the record to the full Commission for final decision, within 90 days after the termination of such hearing. The full Commission shall hear oral argument on the matter so certified, and it shall render a final decision within 120 days after receipt of the certified record and recommended decision of such panel. The Commission may, in its discretion, extend any time period set forth in this subdivision, except that the final decision of the Commission shall be rendered not later than the second anniversary of the date of receipt of such an application by the Commission. "(e) In making its recommended decision with respect to any transaction proposed under this paragraph, the duly designated panel of the Commission shall— "(i) request the views of the Secretary, with respect to the effect of such proposed transaction on the national transportation policy, as stated by the Secretary, and consider the matter submitted under subdivision (f); "(ii) request the views of the Attorney General, with respect r; to any competitive or anticompetitive effects of such proposed transaction; and "(iii) request the views of the Secretary of Labor, with respect to the effect of such proposed transaction on railroad employees, ^ particularly as to whether such proposal contains adequate employee protection provisions. Such views shall be submitted in writing and shall be available to the public upon request. "(f) Whenever a proposed transaction is submitted to the Secretary by a common carrier by railroad pursuant to clause (ii) of subdivision (b), and whenever the Secretary develops a proposed transaction for submission to the Commission pursuant to subdivision (c), the Secretary shall— "(i) publish a summary and a detailed account of the contents of such proposed transaction in the Federal Register, in order to provide reasonable notice to interested parties and the public of such proposed transaction; "(ii) give notice of such proposed transaction to the Attorney General and to the Governor of each State in which any part of the properties of the common carriers by railroad involved in such proposed transaction are situated;

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 PUBLIC LAW 94-210—FEB. 5, 1976 '

90 STAT. 65

"(iii) conduct an informal public hearing with respect to such Hearing, proposed transaction and provide an opportunity for all interested parties to submit written comments; "(iv) study each such proposed transaction with respect to— <i " (A) the needs of rail transportation in the geographical area affected; "(B) the effect of such proposed transaction on the retention and promotion of competition in the provision of rail and other transportation services in the geographical area affected; "(C) the environmental impact of such proposed transaction and of alternative choices of action; "(D) the effect of such proposed transaction on employment; " (E) the cost of rehabilitation and modernization of track, equipment, and other facilities, with a comparison of the potential savings or losses from other possible choices of action; " (F) the rationalization of the rail system; "(G) the impact of such proposed transaction on shippers, consumers, and railroad employees; " (H) the effect of such proposed transaction on the communities in the geographical areas affected and on the geographical areas contiguous to such areas; and " (I) whether such proposed tranf>action will improve rail service; and " (v) submit a report to the Commission setting forth the results Report to of each study conducted pursuant to clause (iv), within 10 Commission, days after an application is submitted to the Commission pursuant to subdivision (c), with respect to the proposed transaction which is the subject of such study. The Commission shall g.ve due weight and consideration to such report in making its determinations under this paragraph. "(g) The Commission may— "(i) approve a transaction proposed under this paragraph, if the Commission determines that such proposed transaction is in the public interest; and "(ii) condition its approval of any such proposed transaction on any terms, conditions, and modifications which the Commission determines are in the public interest; or "(iii) disapprove any such proposed transaction, if the Commission determines that such proposed transaction is not in the public interest. In each such case, the decision of the Commission shall be accompanied by a written opinion setting forth the reasons for its action.", (b) Section 5 of the Interstate Commerce Act (49 U.S.C. 5) is further amended— (1) in paragraph (2)(a) thereof by inserting "or paragraph (3)" immediately after "subdivision (b) "; (2) in paragraph (2)(f) thereof, by inserting immediately after " (2) " the following: "or paragraph (3)"; (3) in paragraph (5) thereof, as redesignated by this Act, by striking out "paragraph (2)" and inserting in lieu thereof "paragraphs (2) and (3)", and by striking out "paragraph (5)" and inserting in lieu thereof "paragraph (6)"; (4) in paragraph (8) thereof, as redesignated by this Act, by striking out "paragraph (4)" and inserting in lieu thereof
 * i

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 90 STAT. 66

PUBLIC LAW 94-210—FEB. 5, 1976 "paragraph (5)", and by striking out "(12)" and inserting in lieu thereof "(13)"; (5) in paragraph (10) thereof, as redesignated by this Act, by striking out " (7) " and inserting in lieu thereof " (8) "; (6) in paragrai^h (14) thereof, as redesignated by this Act, by striking out "(12)" and inserting in lieu thereof "(13)"; (7) in paragraph (16), as redesignated by this Act, by striking out "paragraph (14)" and inserting in lieu thereof "paragraph (15)"; (8) in paragraph (17), as redesignated by this Act, by striking out "paragraph (14)" and inserting in lieu thereof "paragraph (15)"; and (9) by striking out "subparagraph" each place it appears and inserting in lieu thereof "subdivision". TITLE V—RAILROAD REHABILITATION AND IMPROVEMENT FINANCING DEFINITIONS

45 USC 821.

SEC. 50L As used in this title, the term— (1) "applicant" means any railroad, or other person (including a governmental entity) which submits an application to the Secretary for the guarantee of an obligation under which it is an obligor or for a commitment to guarantee such an obligation; (2) 'Equipment" includes any type of new or rebuilt standard gauge locomotive, caboose, or general service railroad freight car the use of which is not limited to any specialized purpose by particular equipment, design, or other features. General service railroad freight car includes a boxcar, gondola, open-top or covered hopper car, and flatcar. The Secretary may designate other types of cars as equipment upon a written finding, with reasons therefor, that such designation is consistent with the purposes of this Act; (3) "facilities" means— (A) track, roadbed, and related structures, including rail, ties, ballast, other track materials, grading, tunnels, bridges, trestles, culverts, elevated structures, stations, office buildings used for operating purposes only, repair shops, enginehouses, and public improvements used or useable for rail service t;: operations; (B) communication and power transmission svstems, including electronic, microwave, wireless, communication, and automatic data processing systems, electrical transmission systems, powerplants, power transmission systems,
 * powerplant machinery and equipment, structures, and facilities for the transmission of electricity for use by railroads;

J -J (C) signals, including signals and interlockers; (D) terminal or yard facilities, including trailer-on-flatcar and container-on-flat-car terminals, express or railroad terminal and switching facilities, and services to express companies and railroads and their shippers, including ferries, tugs, carfloats, and related shoreside facilities designed for the transportation of equipment by water; or (E) shop or repair facilities or any other property used or capable of being used in rail freight transportation services or in connection with such services or for originating, termi-

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nating, improving, and expediting the movement of equipment; (4) "Fund" means the Kailroad Eehabilitation and Improvement Fund established under section 502 of this title; (5) "holder" means the obligee or creditor under an obligation, except that when a bank or trust company is acting as agent or trustee for such an obligee or creditor, the term refers to such bank or trust company; (6) "obligation" means a bond, note, conditional sale agreement, equipment trust certificate, security agreement, or other obligation issued or granted to finance or refinance equipment or facilities acquisition, construction, rehabilitation, or improvement; and (7) "obligor" means the debtor under an obligation, including the original obligor and any successor or assignee of such obligor who is approved by the Secretary. THE RAIL

FUND

SEC. 502. (a) ESTABLISHMENT.—There is hereby established in the Treasury of the United States the Railroad Rehabilitation and Improvement Fund. The Fund shall be administered by the Secretary, without the requirement of annual authorizations, in order (1) to secure the payment, when due, of the principal of, any redemption premium on, and any interest on, all Fund anticipation notes and Fund bonds, by a first pledge of and a lien on all revenues payable to and assets held in the Fund, and (2) to carry out the purposes, functions, and powers authorized in this title. (b) PURPOSE.—The purpose of the Fund is to provide capital which is necessary to furnish financial assistance to railroads, to the extend of appropriated funds, for facilities maintenance, rehabilitation, improvements, and acquisitions, and such other financial needs as the Secretary approves, in accordance with this title. (c) GENERAL POWERS.—In order to achieve the objectives and to carry out the purposes of this title, the Secretary may— (1) issue and sell securities, including Fund anticipation notes and Fund bonds, as provided for in sections 507 and 508 of this title; (2) make and enforce such rules and regulations, and make and perform such contracts, agreements, and commitments, as may be necessary to appropriate to carry out the purposes or provisions of this title; (3) prescribe and impose fees and charges for services by the Secretary, pursuant to this title; _ (4) settle, adjust, and compromise, and, with or without consideration or benefit to the Fund, release or waive, in whole or in part, in advance or otherwise, any claim, demand, or right of, by, or against the Secretary or the Fund; (5) sue and be sued, complain, and defend, in any State, Federal, or other court; (6) acquire, take, hold, own, deal with, and dispose of, any property, including carrier redeemable preference shares as provided for in section 505(d) of this title; and (7) determine, in accordance with appropriations, the amounts to be withdrawn from the Fund and the manner in which such withdrawals shall be effected. (d) ASSISTANCE FROM OTHER AGENCIES.—The Secretary, with the consent of any department, establishment, or corporate or other instru-

Railroad Rehabilitation and Improvement Fund. 45 USC 822.

Rules and regulations.

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 9 0 STAT. 6 8

PUBLIC LAW 9 4 - 2 1 0 — F E B. 5, 1976 mentality of the Federal Government, may utilize and act through any such department, establishment, or instrumentality. The Secretary may, w i t h such consent, utilize the information, services, facilities, and personnel of any such department, establishment, or instrumentality, on a reimbursable basis. E a c h such department, establishment, and instrumentality is authorized to furnish any such assistance to the Secretary upon written request from the Secretary. (e) JURISDICTION,—A¥henever the Secretary or the F u n d is a party to any civil action under this title, such action shall be deemed to arise under the laws of the United States, The district courts of the United States shall have original and removal jurisdiction of any action in which the Secretary or the F u n d is a party, without regard to the amount in controversy. No attachment or execution may be issued against the Secretary, the F u n d, or any property thereof p r i o r to the entry of final judgment to such effect in any State, Federal, or other court. (f) CONTENTS OF F U N D, — The r e shall be deposited in the F u n d, subject to utilization pursuant to subsection (i) of this section— (1) funds received by the Secretary for deposit in the F u n d, representing the proceeds from the issuance and sale by the Secretary to the Secretary of the Treasury of F u n d anticipation notes, as provided in section 507 of this title; (2) funds as may be hereafter appropriated to the F u n d, following the submission to the Congress of the Secretary's report, under section 504 of this title, with respect to the perceived needs of the rail industry for facilities rehabilitation and improvement, projected cash shortfalls within the rail industry, and the scope and sources of long-term public sector funding for the F u n d; (3) funds received by the Secretary for deposit in the F u n d, representing the proceeds from the issuance and sale of F u n d bonds, as provided in section 508 of this title; (4) redeemable preference shares issued by a railroad and purchased by the Secretary on behalf of the F u n d and funds received by the F u n d representing dividends and redemption payments on such shares, as provided in sections 505(d) and 506 (a) and (b) of this title; (5) income and gains realized by the F u n d from any investment , of excess funds, pursuant to subsection (g) of this section, and the obligations or securities comprising such investments; and (6) any other receipts of the F u n d,

.-^;,;

•

(g) EXCESS F U N D S INVESTMENT, — I f the Secretary determines that

"

the amount of money in the F u n d exceeds the amount required for current needs, the Secretary may, subject to sections 508(g) and (h) of this title, direct the Secretary of the Treasury to invest such amounts as the Secretary deems advisable, for such periods as the Secretary directs, in obligations of. or obligations guaranteed by, the Government of the United States, or in such other governmental o r agency obligations or other securities of the United States as the Secretary of the Treasury deems appropriate, (h) DEPOSITORY.—The Secretary may deposit moneys of the F u n d with any Federal Reserve bank, any depository for public funds, or in such other places and in such manner as the Secretary of the Treasury deems appropriate, (i) USES.—Moneys in the F u n d shall be utilized— (1) to provide financial assistance to railroads for facilities maintenance, rehabilitation, improvement, and acquisition p r o j •: ects, and for such other financial needs as may be approved by the " Secretary pursuant to section 505 of this title.

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(2) to effect the payment, when due, of the principal of, and any interest on. Fund anticipation notes and Fund bonds issued by the Secretary pursuant to sections 507 and 508 of this title, (3) to redeem, as contemplated by section 507(c) and section 508(g) of this title. Fund anticipation notes and Fund bonds, (4) in such amounts as are provided in appropriation acts, to make payment of all expenses incurred by the Secretary in carrying out his duties with respect to the Fund, and (5) to make transfers to the general fund of the Treasury. CLASSIFICATION AND DESIGNATION OF RAIL L I N E S

SEC. 503. (a) TRAFFIC D E N S I T Y ANALYSIS.—Within 90 days after

Submittal to

the date of enactment of this Act, each railroad designated by the Commission as a class I railroad shall prepare and submit to the Secretary a full and complete analysis of the rail system operated by it. Such analysis shall indicate the traffic density for the preceding 5 calendar years on each of the main and branch rail lines of the railroad submitting such analysis. The requirements of the two preceding sentences shall not apply to any railroad subject to reoiganization pursuant to the Regional Rail Reorganization Act of 1973.

^®^^®^^^f^^

Transportation.

45 USC 823.

45 USC 701 note.

(b) PRELIMINARY STANDARDS AND DESIGNATIONS.—Within 180 days

after the date of enactment of this Act, the Secretary shall develop and publish— (1) the preliminary standards for classification, in at least 3 categories, of main and branch rail lines according to the degree to which they are essential to the rail transportation system; and (2) the preliminary designations with respect to each main and branch rail line, in accordance with such standards for classification. The classification of rail lines for purposes of this subsection shall be based on the level of usage measured in gross-ton-miles, the contribution to the economic viability of the railroad which controls such lines, and the contribution of such lines to the probable economic viability of any other railroads which participate in the traffic originating on such lines. I n determining "level of usage" and "probable economic viability", for purposes of such classification, the Secretary shall take into account operational service and other a p p r o p r i a t e factors, and 1 e may make reasonable allowance for differences in operation among individual railroads or groups of railroads. (c) P U B L I C HEARINGS.—Commencing 30 days after the date of publication of the standards and designations required under subsection (b) of this section, the Office shall conduct public hearings, at representative locations, to solicit comments and receive views on the prelimi n a r y standard s for classification and on the preliminary designations. The Office shall give notice of the date, time, and place of each such Notice. hearing, and such notices shall be designed and placed in such manner that all interested parties will have a full and fair opportunity to be heard. (d) REPORT BY OFFICE.—Within 120 days after the date of publication of the standard s and designations required under subsection (b) of this section, the Office shall submit a report to the Secretary containi n g its conclusions and recommendations with respect to such prelimin a r y standards for classification and such preliminary designations. T h i s report shall be based on the record which was developed by the Office during the hearings under subsection (c) of this section, as supplemented by such studies as may be undertaken by the Office.

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 90 STAT. 7 0 '

PUBLIC LAW 9 4 - 2 1 0 — F E B. 5, 1976 (e) F I N A L STANDARDS AND DESIGNATIONS.—Within 60 days after the

date of receipt of the report required under subsection (d) of this section, the Secretary, with the cooperation and assistance of the Office, shall, after giving due consideration to such report, prepare and publish— (1) the final standards for classification of main and branch rail lines; and (2) the final designations with respect to each main and branch rail line, in accordance with such standards for classification, including findings to support any material change which is made in a final designation from the corresponding preliminary designation. CAPITAL N E E D S STUDY 45 USC 824.

SEC. 504. (a)

^

DEFERRED MAINTENANCE STATEMENT. — W i t h i n 180

days after the date of enactment of this Act, each railroad designated by the Commission as a class I railroad (other than a railroad subject to reorganization pursuant to the Regional Rail Reorganization Act 45 USC 701 note, of 1973) shall prepare and submit to the Secretary a full and complete statement (1) of such railroad's deferred maintenance and delayed .;;.: capital expenditures, as of December 31.1975, and (2) of the projected amounts of appropriate maintenance to be performed and capital expenditures to be made for such railroad's facilities, during each of the years from 1976 through 1985. Each railroad shall submit such additional information as may be required from it by the Secretary, in connection with his duties under section 503 of this title or under this section, prior to July 1, 1977, including the projected sources of and uses for the funds required by such railroad for such projected program. (b) PRELIMINARY F I N A N C I N G RECOMMENDATIONS.—Within 360 days

Transmittal to Secretary and Congress.

Transmittal to Congress.

after the date of enactment of this Act, the Secretary, after giving due consideration to (1) the final designations under section 503(e) of this title, (2) the information furnished under subsection (a) of this section, and (3) any other relevant information, shall develop, publish, and transmit— (A) to the Congress, preliminary recommendations as to the amount and type of carrier equity and other financing to be effected through the F u n d, or through any other funding mechanism, recommended by the Secretary, based upon his view of the rail industry's facilities rehabilitation and improvement needs, as projected through Decembor 31.1985; and (B) to the Congress and to the Secretary of the Treasury, preliminary recommendations as to the means by which the Federal share, if any, of such equity and other financing should be provided. I n p r e p a r i n g such recommendations, the Secretary shall specifically consider and evaluate the public benefits and costs which would result from public ownership of railroad rights-of-way. (c) EVALUATION.—j-Within 90 days after the date of publication of the Secretary's preliminary recommendations under subsection (b) of this section, the Secretary of the Treasury shall publish and transmit to the Secretary and to the Congress h i s evaluation thereof and any recommendations with respect to the matters referred to in subsection (b)(3)(B) of this section. (d) F I N A L RECOMMENDATIONS.—Within 90 d a y s after the date of

receipt of the evaluation, transmitted under subsection (c) of this

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90 STAT. 71

section, the Secretary shall, after giving due consideration to such recommendations, prepare and transmit to the Congress his final recommendations with respect to the matters referred to in subsection (b) of this section. REHABILITATION AND IMPROVEMENT r i N A N C I N G

SEC. 505. (a) TIMING.—Any railroad may apply to the Secretary 45 USC 825. following the date of enactment of this Act, in accordance with regulations promulgated by the Secretary— (1) for such financial assistance as may be approved by the Secretary; and (2) for financial assistance for facilities rehabilitation and improvement financing, except that the Secretary shall not act finally on any such application until the date of publication of the final standards and designations under section 503(e) of this title. (b) APPLICATION AND DETERMINATION.— (1) Each application for facilities rehabilitation and improvement financing shall set forth—• (A) a description of the proposed facilities rehabilitation and improvement project for which such railroad is seeking financial assistance, and of the current physical condition of such facilities; (B) the classification of each main and branch rail line included in such project, as determined in accordance with the final standards and designations under section 503(e) of this title; (C) the track standard under which each such line has been and is being operated and the leasons therefor, and the safety standards and signal requirements necessary under such standard to prevent loss of life and serious accident or injury at grade crossings; (D) the track standard necessary, in the judgment of such railroad, to provide reliable and comjietitive freight service (and passenger service, where applicable) over each such line, together with such railroad's recommendations as to (i) the most economical method of improving the physical condition of each such line to meet such track standard, (ii) the cost of providing adequate safety standards and signals, and (iii) an economic analysis of the cost of such improvements in condition and in safety standards and signals; (E) such railroad's estimate as to the cost of labor and materials, and the date of completion, and its opinion as to the priority to be accorded such portions of the proposed project as are reasonably divisible; (F) the amount and kind of Federal financial assistance required by such railroad in order to complete the proposed project; and (G) such other information as the Secretary shall by regulation require to assist him in evaluating such application in accordance with this section or for carrying out the purposes of this title. (2) The Secretary shall act upon each such application within 6 months after the date on which all required information is received, except as otherwise provided in subsection (a)(2) of this section. The Secretary may approve any such application if he determines that providing the requested financial assistance is in the public interest. When making such a determination, the Secretary shall consider (A) the availability of funds from other sources at a cost which is reasonable under principles of prudent railroad financial management in light of the railroad's projected rate of return for the project to be financed, (B) the interest of the public in supplementing such other

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 90 STAT. 72

•'

11 USC 205.

'

,

PUBLIC LAW 94-210—FEB. 5, 1976 funds as may be available in order to increase the total amount of funds available for railroad financing, and (C) the public benefits to be realized from the project to be fmanced in relation to the public costs of such financing and whether the proposed project will return public benefits sufficient to justify such public costs. The Secretary, in granting financial assistance to any applicant, shall assign the highest priority, among applications for assistance which would return equal public benefits, to applications for assistance for providing safety improvements and signals, including underpasses or overpasses at railroad crossings at which injury or loss of life has frequently occurred or is likely to occur. (c) FINANCING AGREEMENT.—Upon the approval of an application for financial assistance under this section, the Secretary shall promptly enter into an agreement with such railroad to provide financing in such amounts and at such times as is sufficient, in the judgment of the Secretary, to meet the reasonable cost, in whole or in part, of the facilities rehabilitation and improvement project which has been approved, in whole or in part. Each such agreement shall include such teims and conditions as are necessary or appropriate, in the judgment of the Secretary, to assure that the financing will be used only in the manner, and for the purposes, approved by the Secretary. (d) AUTHORIZATION.— (1) In the case of a railroad other than a railroad in reorganization under section 77 of the Bankruptcy Act, financing pursuant to this section shall be in the form of purchase by the Secretary of redeemable preference shares at par. Such shares shall be specifically issued for such purpose in accordance with the terms and conditions set forth in section 506 of this title. (2)(A) In the case of a railroad in reorganization under section 77 of the Bankruptcy Act, the Secretary, in order to provide financing pursuant to this section, may agree to purchase redeemable preference shares of such railroad at par as part of a plan of reorganization of such railroad approved by the court having jurisdiction over the reorganization of such railroad. Such shares shall be specifically issued in accordance with the terms and conditions set forth in section 506 of this title. (B) The Secretary, in order to provide financing pursuant to this section, may also purchase certificates issued under section 77(c)(3) of the Bankruptcy Act by a trustee of a railroad in reorganization and approved by the reorganization court, under such terms and conditions as may be approved by the Secretary and the reorganization court. In purchasing such trustee certificates or at any time thereafter, the Secretary may agree with the trustee of such railroad in reorganization, subject to the approval of the reorganization court, to exchange such certificates for redeemable preference shares issued, in accordance with the terms and conditions set forth in section 506 of this title, in connection with a plan of reorganization approved by the reorganization court. No certificate shall be purchased under this section unless and until the Secretary makes a finding in writing that— (i) such certificates cannot otherwise be sold at a reasonable rate of interest; (ii) the project to be financed can reasonably be expected to be maintained as part of a financially self-sustaining railroad system; and (iii) the probable value of the assets of the railroad in the event of liquidation provides reasonable protection to the United States. (3) The total par value of the redeemable preference shares and the amount of trustee certificates which the Secretary may purchase from the proceeds received from the issuance and sale of Fund anticipation

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 PUBLIC LAW 94-210—FEB. 5, 1976 notes shall not exceed $600,000,000. Not more than $100,000,000 of such proceeds may be used to purchase trustee certificates.

90 STAT. 73 ,

(e) FUTURE PURCHASES OF REDEEMABLE PREFERENCE SHARES.—The

total par value of the redeemable preference shares which the Secretary may purchase under this title after September 30, 1978, shall be determined by the Congress following the receipt by the Congress of the Secretary's recommendations as to the scope and sources of funding of the Fund or any recommended alternative financing mechanism, as submitted pursuant to section 504 of this title, except that— (1) the amount of the Secretary's investment in redeemable preference shares in any fiscal year (out of proceeds other than those derived through the issuance and sale of Fund anticipation notes) shall not, when added to the amount of his prior investment in such shares, exceed 200 percent of the aggregate principal amount of the Fund bonds which (A) have been issued by the Secretary prior to such fiscal year, and (B) are projected to be issued by the Secretary through the end of such fiscal year; and (2) neither redemptions of Fund bonds nor their payment at scheduled maturity shall have any bearing on the limitation in paragraph (1) of this subsection.

.,,....,

REDEEMABLE PREFERENCE SHARES

SEC. 506. (a) CHARACTERISTICS.—The redeemable preference shares 45 USC 826. acquired by the Secretary pursuant to section 505(d) of this title are securities which are issued by a railroad for the purpose of obtaining financing under this title. Each such redeemable preference share— (1) shall be nonvoting and shall have a par value of $10,C00; (2) shall be senior in right (i) to all common stock of the issuing railroad, whenever issued, (ii) to any previously issued preferred stock where such seniority does not mitigate any rights of the holders of such stock accorded by the terms and conditions of _ such stock, and (iii) to any subsequently issued preferred stock, with respect to dividend and redemption payments and in case of liquidation or dissolution of such railroad, but shall be otherwise subordinate in such matters to any of such railroad's previously issued and outstanding securities which rank ahead of its common stock and shall be subordinate to all securities other than common stock received in exchange as a part of a court approved reorganization plan under section 77 of the Bankruptcy Act (11 U.S.C. 205) approved after the date of enactment of this sentence for previously incurred senior debt or previously issued and outstanding securities which ranked ahead of its common stock; (3) shall accrue dividends, commencing on the 10th anniversary date of the date of its original issuance, at such rate as shall be fixed by the Secretary for each issuance prior to the issuance thereof and which, when added to the amount of the mandatory redemption payments under subparagraph (4) of this paragraph, shall return to the Fund not less than 150 percent of the aggregate par value thereof, over the scheduled life of the issue and in annual payments which shall be as nearly equal as practicable; and (4) shall be subject to mandatory redemption, at par, commencing not earlier than the 6th and not later than the 11th (as determined by the Secretary for each issuance) anniversary date of the date of its original issuance, in annual amounts which shall, over the period ending (as determined by the Secretary for

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PUBLIC LAW 94-210—FEB. 5, 1976 '

each issuance) not later than the 30th anniversary date of the date of its original issuance, aggregate the total par value of such share. (b) DEPOSIT.—^AU redeemable preference shares which are acquired by the Secretary pursuant to section 505(d) of this title shall, upon such acquisition, be deposited in the Fund. (c) OVERDUE PAYMENTS.—Whenever any dividend or redemption payment which is due on redeemable preference shares issued by any railroad remains unpaid for a period of 4 months, the Secretary shall be entitled to appoint two members to the Board of Directors of such railroad. The term of office of such members shall not extend beyond the period during which such dividend or redemption payments remains unpaid. F U N D ANTICIPATION NOTES

45 USC 827.

MM; y;

^

SEC. 507. (a) GENERAL.—The Secretary shall, until September 30, 1978, issue and sell, and the Secretary of the Treasury until such date shall, to the extent of appropriated funds, purchase Fund anticipation notes in an aggregate principal amount of not more than $600,000,000, in order to provide financial assistance to railroads for such financing needs as the Secretary approves. (b) TERMS OF ISSUE.—Fund anticipation notes shall be issued in denominations of $100,000 (or any integral multiple thereof), upon such terms and conditions, with such maturities, such rates of interest, if any, and such redemption premiums, if any, as the Secretary in his sole discretion may determine. The date of maturity of each Fund anticipation note may not exceed 7 years from the date of its issuance. (c) REDEMPTION.—If the Congress, following its receipt of the recommendations of the Secretary pursuant to section 504(d) of this title (with respect to the amount of facilities rehabilitation and improvement financing which should be effected through the Fund and the method of long-term public sector funding therefor) authorizes the issuance of Fund bonds, the Secretary shall redeem the Fund anticipation notes then outstanding, in such manner, and over such period of time, as the Secretary shall determine, from the proceeds of the sale of such Fund bonds and from such other public sector moneys as have been appropriated to the Fund. (d) REMITTANCE AND TERMINATION.—If the Congress does not, on or before September 30, 1978, enact legislation of the type referred to in subsection (c) of this section, the Secretary shall hold in trust all redeemable preference shares issued by railroads which are held in the Fund, and the Fund shall thereupon terminate. FUND BONDS

45 USC 828.

SEC. 508. (a) ISSUANCE.—The Secretary may, following enactment of the legislation referred to in section 507(c) of this title, issue Fund bonds in denominations of $100,000 (or any integral multiple thereof), in such total amounts as may be authorized by the Congress. No Fund bonds— (1) shall be issued which mature in less than 8, or more than 15, years from the date of original issuance thereof; (2) shall be issued later than the 10th anniversary of the date of publication of the final standards and designations under section 503(e) of this title; and (3) shall, except as otherwise provided pursuant to subsections (d)(6) and (g) of this section, be subject to redemption (at the option of the Secretary)(A) at any time prior to the 10th anni-

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 PUBLIC LAW 94-210—FEB. 5, 1976 versary of the date of original issuance thereof, and (B) at any time thereafter. (b) PLEDGE AND LIEN.—The Secretary, subject to sections 502(g) and 508(g) of this title, shall impose a first pledge of, and a first lien on, all revenues payable to, and assets held in, the Fund, and appropriated for the use of the Secretary pursuant to this title. The Secretary may impose such a pledge of and lien on all other revenues or property of the Fund. The purpose of any such pledge and lien shall be to secure the payment, when due, of the principal of, any redemption premiums on, and any interest on, all Fund anticipation notes and Fund bonds, and for other purposes incidental thereto. Such incidental purposes may include the creation of reserve and other funds which may be similarly pledged and used, to such extent and in such manner as the Secretary deems necessary or desirable. Any pledge made by the Secretary shall be valid and binding from the time it is made. The revenues and assets held in the Fund, and the revenues or property of the Fund which are so pledged and which are subsequently received by the Fund, shall immediately be subject to the lien of such pledge without any physical delivery thereof or any further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind, in tort, contract, or otherwise, against the Secretary or the Fund, without regard to whether such parties have notice thereof. No instrument by which a pledge is created need be recorded or filed to protect such pledge. (c) ENHANCEMENT or MARKETABILITY.—The Secretary may enter into binding covenants with the holders of Fund bonds, and with the trustee, if any, under any agreement entered into in connection with the issuance of such bonds with respect to (1) the establishment of reserves, and other funds; (2) stipulations concerning the subsequent issuance of obligations; and (3) such other matters as the Secretary deems necessary or desirable to enhance the marketability of Fund bonds. (d) SPECIFIC DETERMINATIONS.—Subject to subsection (a) of this section, the Secretary may determine, with respect to Fund bonds— (1) the form and denominations in which they shall be issued; (2) the time when they shall be sold, and in what amounts; (3) the time when they shall mature; (4) the price thereof at sale; (5) the rate of interest thereon; (6) whether, and in what manner, they may be redeemed prior to the date when they mature; and (7) whether they shall be negotiable or nonnegotiable and whether they shall be bearer or registered instruments, and any indentures or covenants relating thereto. (e) CHARACTERISTICS.—Fund bonds issued by the Secretary under this section shall— (1) contain a recital that they are issued under this section, which shall be conclusive evidence as to the validity and regularity of issuance and sale of such Fund bonds; (2) be subject to such other terms and conditions as the Secretary may, by the resolution authorizing their issuance, determine; (3) 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 or control of any officer or agency of the United States; (4) not be exempted from Federal, State, and local taxation; and

90 STAT. 75

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 90 STAT. 7 6

PUBLIC LAW 9 4 - 2 1 0 — F E B. 5, 1976 (5) not be debts or enforceable general obligations of, nor shall payment of the principal thereof or interest thereon be guaranteed by, the United States. Neither the full faith and credit, n o r the general taxing power, of the Federal Government shall be pledged to the payment of the principal of, any premium on, or interest on, such F u n d bonds. (f) N o PERSONAL L I A B I L I T Y. — N e i the r the Secretary, nor any other

individual, who executes any F u n d anticipation notes or F u n d bonds, shall be subject to any personal liability or accountability by reason of the issuance of any such notes or bonds. (g)

-

KEDEMPTION AND TRANSFER.—If, after the 10th

anniversary

date of the original issuance of the initial series of F u n d bonds, the amount in the F u n d, exclusive of the value of any redeemable preference shares held by the F u n d, exceeds 250 percent of the amount required to satisfy amounts due in the succeeding fiscal year on account of F u n d bonds, the Secretary may use such excess to redeem F u n d bonds i n accordance with their terms or may withdraw all or part of such excess from the F u n d and transfer i t to the general fund of the United States. When all F u n d bonds have been redeemed, all amounts remaining in the F u n d or thereafter accruing to it shall be transferred to the general fund of the United States, except to the extent necessary to cover such expenses of the F u n d as may be required to carry on and complete any remaining responsibilities. (h)

PURCHASE BY SECRETARY.—The

Secretary,

subject

to

such

agreements with holders of F u n d bonds as may then exist, is authorized (out of any funds available) to purchase F u n d anticipation notes or F u n d bonds. Upon any such purchase, such bonds and notes shall be canceled. AUTHORIZATIONS

45 USC 829.

r

SEC. 509. There is authorized to be appropriated to the Secretary of the Treasury for the purposes of the F u n d not to exceed $600,000,000 and the Secretary of the Treasury is authorized and directed to purchase, from time to time, p r i o r to September 30, 1978, from the Secretary, out of such moneys in the Treasury as are appropriated under this sentence, F u n d anticipation notes in such aggregate principal amounts, subject to the foregoing limitation, as the Secretary may so offer for sale. N o money i n the F u n d, regardless of source, shall be obligated, expended, or otherwise committed to any purpose from the F under i o r to or after September 30, 1978, without prior approval thereof in an annual appropriations Act. The F u n d shall not qualify as one of the exceptions provided in section 401(d) of the Congressional B u d g e t and I m p o u n d m e n t Control Act of 1974 (31 U.S.C. 1351(d)). EXEMPTION

45 USC 830.

S E C, 510. Neither the provisions of section 20a of the Interstate Commerce Act (49 U.S.C. 20a), n o r the registration and prospectus delivery requirements of the Securities Act of 1933, nor the provisions of the securities laws of any State, shall be applicable to the issuance and sale of redeemable preference shares by railroads under this title. GUARANTEE OF OBLIGATIONS

45 USC 831.

SEC. 511. (a) GENERAL.—The Secretary may, in accordance with the provisions of this section, guarantee and make commitments to guarantee the payment of the principal balance of, and any interest on, an obligation of an applicant p r i o r to, on, or after the date of execu-

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tion or the date of disbursement of such obligation, if the proceeds of such obligation shall be or have been used to acquire or to rehabilitate and improve facilities or equipment. Each guarantee of such an obliation shall be made in accordance with the provisions of sections 511 irough 513 of this title and such rules as the Secretary may prescribe to protect reasonably the interest of the United States. Each application for the guarantee of such an obligation or for a commitment to ^ a r a n t e e such an obligation shall be made in writing to the Secretary m such form and with such content as the Secretary prescribes. Such application shall be granted, in whole or in part, if the Secretary determines that the proposed, negotiated, or executed obligation is eligible for such guarantee. Each such guarantee or commitment to guarantee shall be extended in such form, under such terms and conditions, and pursuant to such regulations as the Secretary deems appropriate, consistent with the purposes of this title. Such a guarantee or commitment to guarantee shall inure to the benefit of the holder of the obligation to which such guarantee or commitment to guarantee applies. (b) FUND.—An obligation guarantee fund shall be established and Obligation administered by the Secretary as a revolving fund to carry out guarantee fund. the provisions of sections 511 through 513 of this title. Moneys m the Establishment. obligation guarantee fund shall be deposited in the Treasury of the United States to the credit of such fund or invested in bonds or other obligations of the United States approved by the Secretary of the Treasury. (c) VALUATION.—Before granting any application for a guarantee or a commitment to guarantee any obligation, the Secretary shall make a determination of the value of the facilities or equipment which are or will be financed or refinanced by such obligation. Such determination of value shall be conclusive and not subject to review in any court. (d) MODIFICATIONS.—The Secretary may approve any modification of any provision of a guarantee, or of a commitment to guarantee an obligation, including the rate of interest, time of payment of interest or principal, security, or any other terms and conditions, if the Secretary makes a finding in writing that such modification is equitable and is in the overall best interests of the United States under this title, and that the holder of such obligation consents to such modification.

g

(e) EXTENT OF AUTHORITY.—(1) The aggregate unpaid principal

amounts of obligations which may be guaranteed by the Secretary under this section shall not exceed $1,000,000,000 at any one time, of which not to exceed $150,000,000 may be guaranteed for the purposes described in paragraph (2) of this subsection. (2) Obligations may be guaranteed for the purpose of improving rail properties designated in the final system plan pursuant to section 206(c)(1)(C) of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 716(c)(1)(C)), if the proceeds of such obligations shall be or have been used to acquire or rehabilitate and improve facilities or equipment in a manner that returns the most public benefits for the costs involved. (f) RATE OF INTEREST.—The rate of interest (exclusive of premium charges for a guarantee and service fees) which shall be paid on the unpaid principal balance of each obligation guaranteed by the Secretary under this section, shall not exceed an annual percentage rate which the Secretary determines to be reasonable, taking into consideration the prevailing interest rates for similar obligations in the private market.

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 90 STAT. 7 8 Publication in Federal Register.

PUBLIC LAW 9 4 - 2 1 0 — F E B. 5, 1976 (g) NOTICE.—Upon receipt of an application for the guarantee of an obligation under this section, the Secretary shall cause a notice of such application to be published in the Federal Register and shall invite and afford interested persons a n opportunity to submit comments on such application. (h) PREQUISITES FOR GUARANTEES.—No obligation shall be guaranteed and no commitment shall be made to guarantee any obligation under this section, unless and until the Secretary makes a finding in writing that— (1) a n obligation for equipment acquisition, rehabilitation, o r improvement is secured by the particular equipment which is to be financed or refinanced by such obligation; (2) payment of the obligation is required by its terms to be made within 25 j^ears from the date of its execution; (3) the financing or refinancing is justified by the present and probable future demand for rail services to be rendered by the applicant and will serve to meet demonstrable needs for rail services and to provide shippers with improved service; (4) the applicant has given reasonable assurances that the facilities or equipment to be acquired, rehabilitated, o r improved with the proceeds of the obligation will be economically and efficiently utilized; (5) the probable value of any equipment or facilities to be improved, rehabilitated, or acquired is sufficient to provide the United States with reasonable security and protection in the event of default by the obligor, in the case of repossession by the holder of the obligation or i n the case of possession or purchase by the Secretary; and (6) the transaction will result in an improvement in the ability of any affected railroad to t r a n s p o r t passengers or freight. (i) GENERAL REQUIREMENT.—The recipients of any g u a r a n t e e s of, or

Periodic inspection.

of any commitments to guarantee, an obligation under this section, shall, consistent with their capital resources, maintain their facilities. on a continuing basis, i n accordance w i t h standards promulgated under this subsection. The Secretary shall assure compliance with this requirement by regular periodic inspection. (j) CONDITIONS OF GUARANTEES.—No g u a r a n t e e of, and n o commit-

Hearing.

ment to guarantee, an obligation may be granted, approved, or extended under this section, unless the obligor first agrees in writing that so long as any principal o r interest is due and payable on such obligation— (1) there will be no increase in discretionary dividend payments over the average ratio which such payments bore to eiamings for the applicable fiscal period during the 5 years preceding such proposed increase, without prior approval of such increase by the Secretary; (2) the (Obligor will not use assets or revenues (other than cash) related to or derived from railroad operations in nonrailroad enterprises, without prior approval in writing from the Secretary; and (3) the obligor will take all reasonable and practicable steps possible, in accordance with such guidelines as may be established by the Secretary, to improve the ec[uitable distribution and efficient and expeditious use of all equipment and facilities in order to improve rail service. A p p r o v a l under paragraph (1) o r (2) of this subsection may only be granted if, after a public hearing with an opportunity for interested persons to submit comments, the Secretary makes a written finding

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that such increase i n dividends (or such use of assets or revenues) will not materially affect the ability of the obligor to comply with the requirements of this section. (k) BREACH OF CONDITIONS.—The Attorney General shall commence a civil action in any appropriate district court of the United States to enjoin any activity which the Secretary finds is in violation of any requirement or condition specified in subsection (i) or (j) of this section, and to secure any other a p p r o p r i a t e relief, including termination, suspension, and punitive damages. (1) INVESTIGATION CHARGE.—The Secretary shall charge and collect from each applicant such amounts as he deems reasonable for the investigation of any application submitted under this section, for appraisal of the value of the equipment or facilities involved, and for making the necessary determinations and findings. Such charges shall not aggregate more than one-half of 1 percent of the principal amount of the obligation with respect to which the applicant seeks a guarantee or commitment to guarantee. (m) P R E M I U M CHARGE.—The Secretary shall assess and collect from the obligor a n annual premium charge on each obligation guaranteed under this section. The amount of such premium may not exceed an annual rate of 1 percent on the unpaid principal balance of such obligation a t the time payment is due. Payment is due initially when the obligation is guaranteed by the Secretary, and, thereafter, on the anniversary date of such guarantee. (n) ADMINISTRATIVE COSTS.—All moneys received by the Secretary

under this section shall be deposited in the obligation guarantee fund, and to the extent provided in appropriation acts, may be used by the Secretary to p a y administrative costs and expenses incurred by h i m pursuant to this section. ISSUANCE OF N O T E S OR OBLIGATIONS

SEC. 512. (a) AUTHORIZATION.—The Secretary may issue, in such 45 USC 832. amounts as are provided in appropriation acts, 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 the Secretary may prescribe. Such obligations may be issued whenever the moneys in the obligation guarantee fund are not sufficient to pay any amount which the Secretary is required to pay under section 513 of this title. Such obligations shall bear interest at a rate to be Interest rate, determined by the Secretary of the Treasury on the basis of the current average market yield on outstanding marketable obligations of the United States on comparable maturities during the month preceding the issuance of such obligations. The Secretary of the Treasury shall purchase any such obligations, and for such purpose he may use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, as now or hereafter in force. 31 USC 774. The purposes for which securities may be issued under such Act are extended to include any purchase of notes or other obligations issued under this subsection. The Secretary of the Treasury may sell any such obligations at such times and price and upon such terms and conditions as he shall determine in his discretion. A l l purchases, redemptions, and sales of such obligations by such Secretary shall be treated as public debt transactions of the United States. Moneys obtained under this subsection shall be deposited in the obligation guarantee fund, and redemptions of any such obligations shall be made by the Secretary from such fund.

89-194 O—78—pt. 1

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j

PUBLIC LAW 9 4 - 2 1 0 — F E B. 5, 1976 (b) VALIDITY.—No guarantee or commitment to guarantee under section 511 of this title may be terminated, suspended, canceled, or otherwise revoked, except in accordance with lawful terms and conditions prescribed by the Secretary. Such a guarantee or commitment shall be conclusive evidence that the underlying obligation is in compliance with the provisions of such sections of this title, and that such obligation has been approved and is legal as to principal, interest, and other terms. Such a guarantee or commitment to guarantee shall be valid and incontestable in the hands of the holder thereof, as of the date when the Secretary granted the application therefor, except as to fraud or material misrepresentation by such holder. (c) DEFINITION. — A s used i n this section, the term "Secretary of the Treasury " includes any designated representative of such Secretary. DEFAULT ON GUARANTEED OBLIGATIONS

45 USC 833.

SEC. 513. (a) GENERAL.—If there is a default by the obligor in any payment of principal or interest due under an obligation guaranteed under section 511 of this title, and if such default continues for 30 days, the holder of such obligation or his agent has the right to demand payment by the Secretary of the unpaid interest on, and the unpaid principal of, such obligation consistent wnth the terms of the guarantee of such obligation. Such payment may be demanded after or before the expiration of such period as may be specified in the guarantee or related agreements, b u t not later than 90 days from the date of such default. W i t h i n such specified period, b u t not later than 60 days from the date of such demand, the Secretary shall p a y to such holder the unpaid interest on, and the unpaid principal of, such obligation, consistent with the terms of the guarantee of such obligation, except that (1) the Secretary shall not be required to make any such payment if he finds, prior to the expiration of such period, that there was no default by the obligor in the payment of interest or principal or that such default has been remedied, and (2) no such holder shall receive payment or be entitled to retain payment in a total amount which, together with an other recovery (including any recovery based upon a security interest in equipment or facilities) exceeds the actual loss of such holder. (b) R I G H T S OF THE SECRETARY.— (1) I f the Secretary makes payment

to a holder under subsection (a) of this section, the Secretary shall thereupon— (A) have all of the rights granted to him by law or agreement with the obligor; and (B) be subrogated to all of the rights which v»ere granted such holder, by law, assignment, or security agreement betAveen such holder and the obligor. (2) The Secretary may, in his discretion, complete, recondition reconstruct, renovate, repair, maintain, operate, charter, rent, sell, or otherwise dispose of any property or other interests obtained by him pursuant to this section. The terms of any such sale or other disposition shall be as approved by the Secretary. (c) FORM OF P A Y M E N T. — Any amount required to be paid by the Secretary pursuant to subsection (a) of this section shall be paid in cash. (d) ACTION A G A I N S T OBLIGOR.—If the r e is a default by the obligor

in any payment due under an obligation guaranteed under section 511 of this title, the Secretary shall take such action against such obligor

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or any other person as is, in his discretion, necessary or appropriate to protect the interests of the United States. Such an action may be brought in the name of the United States or in the name of the holder of such obligation. Such holder shall make available to the Secretary all records and evidence necessary to prosecute any such suit. The Secretary may, in his discretion, accept a conveyance of property in full or partial satisfaction of any sums owed to him. If the Secretary receives, through the sale of property, an amount greater than his cost and the amount paid to the holder under subsection (a) of this section, he shall pay such excess to the obligor. AUDIT o r

TRANSACTIONS

SEC. 514. (a) GENERAL.—The Comptroller General of the United 45 USC 834. States is authorized to audit the operations of the Fund and of the obligation guarantee fund in accordance with such rules and regulations as he may prescribe. Any such audit shall be conducted at the place or places where accounts of the Fund or of the obligation guarantee fund are normally kept. The representatives of the Comptroller General shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to, or in use by or in connection with the Fund, the obligation guarantee fund, or the Secretary which pertain to the financial transactions of the Fund or the obligation guarantee fund and which are necessary to facilitate an audit. Such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians. All such books, accounts, records, reports, files, papers, things, and property shall remain in the possession and custody of the Fund, the obligation guarantee fund, or the Secretary, as the case may be. (b) ACCESS TO INFORMATION.—The representatives of the Comptroller General shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to or in use by any person or entity which has entered into a financial transaction with or involving the Fund, the obligation guarantee fund, or the Secretary, under this title, to the extent deemed necessary by the Comptroller General to facilitate any audit of financial transactions pursuant to subsection (a) of this section. Such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians. All such property of such person or entity shall, to the extent practicable, remain in the possession and custody of such person or entity. (c) REPORT.—The Comptroller General shall make a report of each such audit to the Congress. Such report shall contain all comments and information which the Comptroller General deems necessary to inform Congress of the financial operations and condition of the Fund and of the obligation guarantee fund and any recommendations which he deems advisable. Such report shall indicate specifically and describe in detail any program, expenditure, or other financial transaction or undertaking observed in the course of such audit which the Comptroller General deems to have been carried on or made without lawful authority or which is inconsistent with the purposes and provisions of this title. A copy of such report shall be furnished to the President, the Secretary, and the Commission, at the time it is submitted to the Congress.

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PUBLIC LAW 94-210—FEB. 5, 1976 ANNUAL

45 USC 835.

SEC. 515. The Secretary shall report to the Congress within 90 days following the end of each fiscal year on the financial condition and operations of the Fund and of the obligation guarantee fund during such fiscal year, and on the anticipated condition and operations of the Fund and of the obligation guarantee fund during the current fiscal year. EMPLOYEE

45 USC 836. «

^

REPORT

PROTECTION

SEC. 516. (a) GENERAL,—Fair and equitable arrangements shall be provided, in accordance with this section, to protect the interests of any employees not otherwise protected under title V of the Kegional Rail Reorganization Act of 1973 (45 U.S.C. 771 et seq.), who may be affected by actions taken pursuant to authorizations or approval obtained under this title. Such arrangements shall be determined by the execution of an agreement between the representatives of the railroads and the representatives of their employees, within 120 days after the date of enactment of this title. In the absence of such an executed agreement, the Secretary of Labor shall prescribe the applicable protective arrangements, within 150 days after the date of enactment of this title. (b) TERMS.—The arrangements required by subsection (a) of this section shall apply to each employee who has an employment relationship with a railroad on the date on which such railroad first applies for applicable financial assistance under this title. Such arrangements shall include such provisions as may be necessary for the negotiation and execution of agreements as to the manner in which the protective arrangements shall be applied, including notice requirements. Such agreements shall be executed prior to implementation of work funded from financial assistance under this title. If such an agreement is not reached within 30 days after the date on which an application for such assistance is approved, either party to the dispute may submit the issue for final and binding arbitration. The decision on any such arbitration shall be rendered within 30 days after such submission. Such arbitration decision shall in no way modify the protection afforded in the protective arrangements established pursuant to this section, shall be final and binding on the parties thereto, and shall become a part of the agreement. Such arrangements shall also include such provisions as may be necessary— (1) for the preservation of compensation (including subsequent general wage increases, vacation allowances, and monthly compensation guarantees), rights, privileges, and benefits (including fringe benefits such as pensions, hospitalization, and vacations, under the same conditions and so long as such benefits continue to be accorded to other employees of the employing railroad in active service or on furlough, as the case may be) to such employees under existing collective-bargaining agreements or otherwise; (2) to provide for final and binding arbitration of any dispute which cannot be settled by the parties, with respect to the interpretation, application, or enforcement of the provisions of the protective arrangements; (3) to provide that an employee who is unable to secure employment by the exercise of his or her seniority rights, as a result of actions taken with financial assistance obtained under

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this title, shall be offered reassignment and, where necessary, retraining to fill a position comparable to the position held at the time of such adverse effect and for which he is, or by t r a i n i n g and retraining can become, physically and mentally qualified, so long as such offer is not in contravention of collective bargaining agreements relating thereto; and (4) to provide that the protection afforded pursuant to this section shall not be applicable to employees benefited solely as a result of the work which is financed by funds provided pursuant to this title, (c) SuBCONTRACTiXG.—The arrangements which are required to be negotiated by the parties or prescribed by the Secretary of Labor, pursuant to subsections (a) and (b) of this section, shall mclude provisions regulating subcontracting by the railroads of work which is financed by funds provided pursuant to this title. INTERCITY RAIL PASSENGER SERVICE

SEC. 517. The Secretary is authorized, pursuant to the provisions 45 USC 837. of, and within the authorizations contained in, this title, to provide financial assistance, in the aggregate sum of u p to $200,000,000, to any railroad or railroads for the purpose of improving intercity rail passenger service on any lines of such railroad or railroads which are located outside of the Northeast Corridor (as defined in section 701 (c) of this Act). Post, ^.119. TITLE VI — B I P L E M E N T A T I O N OF THE F I N A L SYSTEM PLAN GENERAL

SEC. 601. (a) Unless otherwise specified, whenever, in this title, an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or provision of "such Act", the section or other provision amended or repealed is a section of the Regional Rail Reorganization Act of 1973 (45 U.S.C. 701 et seq.). (b) The table of contents of such Act is amended to read as follows:

'•

"TABLE OF CONTENTS "TITLE I—GENERAL PROVISIONS "Sec. 101. Declaration of policy. "Sec. 102. Definitions. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec. "Sec.

"TITLE II—UNITED STATES RAILWAY ASSOCIATION 201. Formation and structure. 202. General powers and duties of the Association. 203. Access to information. 204. Report. 205. Rail Services Planning OfBce, 206. Final system plan. 207. Adoption of final system plan. 208. Review by Congress. 209. Judicial review. 210. Obligations of the Association. 211. Loans. 212. Records, audit, and examination. 213. Emergency assistance pending implementation. 214. Authorization for appropriations. 215. Maintenance and improvement of plant. 216. Purchase of debentures and series A preferred stock.

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