
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 45USC1321]

 
                           TITLE 45--RAILROADS
 
                    CHAPTER 22--CONRAIL PRIVATIZATION
 
                         SUBCHAPTER II--CONRAIL
 
                 Part B--Other Matters Relating to Sale
 
Sec. 1321. Rail service obligations


(a) Obligations of Corporation

    During a period of 5 years beginning on October 21, 1986, the 
following obligations shall apply to the Corporation:
        (1) The Corporation shall spend in each fiscal year the greater 
    of (A) an amount equal to the Corporation's depreciation for 
    financial reporting purposes for such year or (B) $500,000,000, in 
    capital expenditures. With respect to any fiscal year, the 
    Corporation's Board of Directors may reduce the required capital 
    expenditures for such year to an amount which the Board determines 
    is justified by prudent business and engineering practices, except 
    that the Corporation's capital expenditures shall not be less than 
    $350,000,000 for its first fiscal year beginning after the sale 
    date, a total of $700,000,000 for its first two fiscal years 
    beginning after the sale date, a total of $1,050,000,000 for its 
    first three fiscal years beginning after the sale date, a total of 
    $1,400,000,000 for its first four fiscal years beginning after the 
    sale date, and a total of $1,750,000,000 for its first five fiscal 
    years beginning after the sale date.
        (2) Repealed. Pub. L. 101-213, Sec. 2(b)(3), Dec. 11, 1989, 103 
    Stat. 1843.
        (3) The Corporation shall continue its affirmative action 
    program and its minority vendor program, substantially as such 
    programs were being conducted by the Corporation as of February 8, 
    1985, subject to any provisions of applicable law.
        (4) The Corporation shall not permit to occur any transaction or 
    series of transactions (other than in the ordinary course of 
    business of the Corporation and its subsidiaries) whereby all or any 
    substantial part of the railroad assets and business of the 
    Corporation and its subsidiaries taken as a whole are sold, leased, 
    transferred, or otherwise disposed of to any corporation or entity 
    other than to a wholly owned subsidiary of the Corporation.
        (5) The Corporation shall offer any line for which an 
    abandonment certificate is issued by the Commission to a purchaser 
    who agrees to provide interconnecting rail service. Such offer shall 
    last for the 120-day period following the date of issuance of the 
    abandonment certificate and the price for such abandoned line shall 
    be equal to 75 percent of net liquidation value as determined by the 
    Commission, pursuant to regulations that had been issued under 
    section 748 of this title.
        (6) The Corporation and its subsidiaries shall maintain, 
    preserve, protect, and keep their respective properties in good 
    repair, working order, and condition, and shall not permit deferral 
    of normal and prudent maintenance necessary to provide and maintain 
    rail service.

(b) Compliance certificates

    (1) Within 90 days after the close of each of its fiscal years, or 
at the time its financial statements have been audited, whichever occurs 
later, the Corporation shall deliver to the Secretary of Transportation 
a certificate executed by an executive officer of the Corporation. Such 
certificate shall certify that, as of such date, the Corporation is in 
compliance with all requirements (other than the requirement regarding a 
common stock dividend or a preferred stock dividend) set forth in this 
section. Such certificate shall include audited consolidated financial 
statements.
    (2) Within 5 days after the declaration of any common stock dividend 
or preferred stock dividend, the Corporation shall deliver to the 
Secretary of Transportation a certificate executed by an executive 
officer of the Corporation. Such certificate shall certify that, after 
giving effect to any such dividend, the Corporation shall be in 
compliance with any requirement regarding a common stock dividend or a 
preferred stock dividend set forth in this section. Such certificate 
shall include--
        (A) quarterly financial statements; and
        (B) a report of the Corporation's total capital expenditures,

for the period with respect to which the dividend has been declared, and 
the fiscal year to date, and shall compare such capital expenditures to 
the budgeted capital expenditures and to the capital expenditures during 
the comparable periods of the previous fiscal year.

(Pub. L. 99-509, title IV, Sec. 4021, Oct. 21, 1986, 100 Stat. 1898; 
Pub. L. 101-213, Sec. 2(b)(3), Dec. 11, 1989, 103 Stat. 1843.)


                               Amendments

    1989--Subsec. (a)(2). Pub. L. 101-213 struck out par. (2) which set 
forth circumstances under which Corporation could declare or pay a 
common or preferred stock dividend and defined terms ``common stock 
dividend'' and ``preferred stock dividend''.

  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.

                  Section Referred to in Other Sections

    This section is referred to in section 1324 of this title.
