
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 45USC1112]

 
                           TITLE 45--RAILROADS
 
                   CHAPTER 20--NORTHEAST RAIL SERVICE
 
Sec. 1112. Interstate Commerce Commission proceedings


(a) Final decisions involving railroads in bankruptcy

    Notwithstanding any other provision of subtitle IV of title 49, in 
any proceeding before the Commission under section 11324 or 11325 of 
title 49 involving a railroad in the Region, as defined in section 702 
of this title, which was in a bankruptcy proceeding under section 77 of 
the Bankruptcy Act on November 4, 1979, the Commission shall, with or 
without a hearing, issue a final decision within a period not to exceed 
180 days after receipt of an application under either such section.

(b) Final decisions involving profitable railroads

    Notwithstanding any other provision of subtitle IV of title 49, in 
any proceeding before the Commission under section 11324 or 11325 of 
title 49 involving a profitable railroad in the Region, as defined in 
section 702 of this title, which received a loan under section 721(a) of 
this title, the Commission shall, with or without a hearing, issue a 
final decision within a period not to exceed 180 days after receipt of 
an application under either such section.

(c) Interest of United States attaching in bankruptcy, liquidation, 
        abandonment, etc.

    (1) If the Secretary determines under subsection (b) of this section 
that there is an agreement between a profitable railroad in the Region 
(as defined in section 702 of this title) which received a loan under 
section 721(a) of this title and a prospective purchaser for the sale of 
such railroad, the Secretary shall limit the interest of the United 
States in any debt of such a railroad to an interest which attaches to 
such debt in the event of bankruptcy or substantial sale or liquidation 
of the assets of the railroad. The Secretary may substitute for the 
evidence of such debt contingency notes payable solely from the railroad 
operating assets then securing such debt, including reinvestments 
thereof, or such other contingency notes as the Secretary deems 
appropriate and which conform to the terms set forth in this subsection.
    (2) If the interest of the United States is limited under paragraph 
(1), any new debt issued by such a railroad subsequent to the issuance 
of the debt described in paragraph (1) may have such higher priority in 
the event of bankruptcy, liquidation, or abandonment of the assets of 
such a railroad than the debt described in such paragraph as the 
Secretary and the railroad may agree.
    (3) In carrying out the duties under this subsection, the Secretary 
may (A) enter into such agreements, (B) in accordance with any such 
agreements, cancel or cause to be cancelled or amend or cause to be 
amended any notes or securities currently held by agencies or 
instrumentalities of the United States, and (C) accept in exchange as 
substitution therefor such instruments evidencing the indebtedness owed 
to such agencies or instrumentalities as, in the Secretary's judgment, 
will effectuate the purposes of this subsection.

(Pub. L. 97-35, title XI, Sec. 1164, Aug. 13, 1981, 95 Stat. 685; Pub. 
L. 97-468, title V, Sec. 510, Jan. 14, 1983, 96 Stat. 2554; Pub. L. 104-
88, title III, Sec. 331, Dec. 29, 1995, 109 Stat. 953.)

                       References in Text

    Section 77 of the Bankruptcy Act, referred to in subsec. (a), was 
classified to section 205 of former Title 11, Bankruptcy. The Bankruptcy 
Act (act July 1, 1898, ch. 541, 30 Stat. 544, as amended) was repealed 
effective Oct. 1, 1979, by Pub. L. 95-598, Secs. 401(a), 402(a), Nov. 6, 
1978, 92 Stat. 2682, section 101 of which enacted revised Title 11. For 
current provisions relating to railroad reorganization, see subchapter 
IV (Sec. 1161 et seq.) of chapter 11 of Title 11.


                               Amendments

    1995--Subsecs. (a), (b). Pub. L. 104-88 substituted ``section 11324 
or 11325'' for ``section 11344 or 11345''.
    1983--Subsec. (c)(1). Pub. L. 97-468, Sec. 510(1), substituted 
``bankruptcy or substantial sale'' for ``bankruptcy, substantial sale,'' 
after ``in the event of'', and in last sentence substituted permission 
for the Secretary to substitute contingency notes for evidence of the 
debt for the requirement that the Secretary substitute contingency notes 
for evidence of the debt and inserted provision that the contingency 
notes be payable solely from the railroad operating assets then securing 
such debt, including reinvestments thereof, or be other contingency 
notes as the Secretary deems appropriate.
    Subsec. (c)(2). Pub. L. 97-468, Sec. 510(2), substituted permission 
that new debt may have such higher priority in the event of bankruptcy, 
liquidation, or abandonment of the assets of such a railroad than the 
debt described in par. (1) as the Secretary and the railroad may agree 
for the requirement that such debt have higher priority in the event of 
bankruptcy, liquidation, or abandonment of the assets of Conrail than 
the debt described in par. (1).
    Subsec. (c)(3). Pub. L. 97-468, Sec. 510(3), added par. (3).


                    Effective Date of 1995 Amendment

    Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2 of 
Pub. L. 104-88, set out as an Effective Date note under section 701 of 
Title 49, Transportation.

  Abolition of Interstate Commerce Commission and Transfer of Functions

    Interstate Commerce Commission abolished and functions of Commission 
transferred, except as otherwise provided in Pub. L. 104-88, to Surface 
Transportation Board effective Jan. 1, 1996, by section 702 of Title 49, 
Transportation, and section 101 of Pub. L. 104-88, set out as a note 
under section 701 of Title 49. References to Interstate Commerce 
Commission deemed to refer to Surface Transportation Board, a member or 
employee of the Board, or Secretary of Transportation, as appropriate, 
see section 205 of Pub. L. 104-88, set out as a note under section 701 
of Title 49.
