
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: 45USC721]

 
                           TITLE 45--RAILROADS
 
                CHAPTER 16--REGIONAL RAIL REORGANIZATION
 
            SUBCHAPTER II--UNITED STATES RAILWAY ASSOCIATION
 
Sec. 721. Loans


(a) General

    The Association is authorized, in accordance with the provisions of 
this section and such rules and regulations as it shall prescribe, to 
make loans to the Corporation, the National Railroad Passenger 
Corporation, and other railroads (including a railroad in reorganization 
which has been found to be reorganizable under section 77 of the 
Bankruptcy Act pursuant to section 717(b) of this title) in the region, 
for purposes of achieving the goals of this chapter; to a State or local 
or regional transportation authority pursuant to section 763 \1\ of this 
title; and to provide assistance in the form of loans to any railroad 
which (A) connects with a railroad in reorganization, and (B) is in need 
of financial assistance to avoid reorganization proceedings under 
section 77 of the Bankruptcy Act. No such loan shall be made by the 
Association to a railroad unless such loans shall, where applicable, be 
treated as an expense of administration. The rights referred to in the 
last sentence of section 77(j) of the Bankruptcy Act shall in no way be 
affected by this chapter.
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    \1\ See References in Text note below.
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(b) Applications

    Each application for such a loan shall be made in writing to the 
Association in such form and with such content and other submissions as 
the Association shall prescribe to protect reasonably the interests of 
the United States. The Association shall publish a notice of the receipt 
of each such application in the Federal Register and shall afford 
interested persons an opportunity to comment thereon.

(c) Terms and conditions

    Each loan shall be extended in such form, under such terms and 
conditions, and pursuant to such regulations as the Association deems 
appropriate. Such loan shall bear interest at a rate not less than the 
greater of a rate determined by the Secretary of the Treasury taking 
into consideration (1) the rate prevailing in the private market for 
similar loans as determined by the Secretary of the Treasury, or (2) the 
current average yield on outstanding marketable obligations of the 
Association with remaining periods of maturity comparable to the average 
maturities of such loans, plus such additional charge, if any, toward 
covering costs of the Association as the Association may determine to be 
consistent with the purposes of this chapter.

(d) Modifications

    The Association is authorized to approve any modification of any 
provision of a loan under this section, including the rate of interest, 
time of payment of interest or principal, security, or any other term or 
condition, upon agreement of the recipient of the loan and upon a 
finding by the Association that such modification is equitable and 
necessary or appropriate to achieve the policy declared in subsection 
(f) of this section. Notwithstanding any other provision of this 
section, in the case of a loan made under subsection (a) of this section 
to a railroad in the region, the Association is not required to make the 
findings with respect to subsections (e)(3) and (f) of this section and 
may, upon the request of such railroad--
        (1) continue to make advances to such railroad pursuant to such 
    loan, up to the total principal provided, as of November 8, 1978, 
    under the agreement between such railroad and the Association under 
    this section, upon finding only that (A) a good faith effort has 
    been commenced by such railroad toward the establishment of an 
    employee stock ownership plan, and (B) such continued advances will 
    permit the continuation of rail service determined by the 
    Association, in the Final System Plan or under the goals of this 
    chapter, to be desirable; and
        (2) increase the principal amount of such loan to such railroad, 
    in an amount not to exceed $7,500,000, only if the Association makes 
    the finding referred to in paragraph (1)(B) of this subsection and 
    determines that such railroad is making a good faith effort to 
    establish an employee stock ownership plan for review and approval 
    by the Association. Any such approval shall be conditioned upon a 
    written commitment that by December 31, 1980, the railroad will 
    adopt an employee stock ownership plan which will acquire qualifying 
    employer securities with a fair market value of $250,000.

The Association may not take any action pursuant to the preceding 
sentence of this subsection after December 31, 1981.

(e) Prerequisites

    The Association shall make a finding in writing, before making a 
loan to any applicant under this section, that--
        (1) the loan is necessary to achieve the goals of this chapter 
    or to prevent insolvency;
        (2) it is satisfied that the business affairs of the applicant 
    will be conducted in a reasonable and prudent manner; and
        (3) the applicant has offered such security as the Association 
    deems necessary to protect reasonably the interests of the United 
    States.

(f) Policy

    It is the intent of Congress that loans made under this section 
shall be made on terms and conditions which furnish reasonable assurance 
that the Corporation or the railroads to which such loans are granted 
will be able to repay them within the time fixed and that the goals of 
this chapter are reasonably likely to be achieved.

(g) Pre-conveyance loans to Corporation

    During the period between the effective date of the final system 
plan and the date of the conveyance of rail properties pursuant to 
section 743(b) of this title, the Association may make such loans in 
such amounts to the Corporation as the Association deems essential to 
provide for the purchase by the Corporation of material, supplies, 
equipment, and services necessary to permit the orderly and efficient 
implementation of the final system plan. Notwithstanding any inability 
of the Association during such period to make the finding required by 
subsection (e)(3) of this section because of any existing contingencies, 
the Association may make any such loans to the Corporation, subject to--
        (1) the most favorable terms and conditions for assuring timely 
    repayment and security as may then be reasonably available, and
        (2) the requirement that any loan to the Corporation under this 
    subsection be refinanced immediately out of the proceeds of the 
    first sale by the issuance of debentures under section 726 of this 
    title.

In order to assure that necessary funds are available to the Corporation 
for implementation of the final system plan, the Corporation is 
authorized to accept such loans as may be approved by the Association 
under this subsection, and any such acceptance shall be deemed for all 
purposes to constitute a reasonable and prudent business judgment in 
compliance with any fiduciary obligations imposed on the Corporation or 
its directors. For purposes of this subsection, the term ``Corporation'' 
includes a subsidiary of the Corporation.

(h) Loans for payment of obligations

    (1)(A) The Association is authorized, subject to the limitations set 
forth in section 720(b) of this title, to enter into loan agreements, in 
amounts not to exceed, at any given time, $350,000,000 in the aggregate 
principal amount, with the Corporation, the National Railroad Passenger 
Corporation, and any profitable railroad to which rail properties are 
transferred or conveyed pursuant to section 743(b)(1) of this title, 
under which the Corporation, the National Railroad Passenger 
Corporation, and any profitable railroad entering into such agreement 
will agree to meet existing or prospective obligations of the railroads 
in reorganization in the region which the Association, in accordance 
with procedures established by the Association, determines should be 
paid by the Corporation, the National Railroad Passenger Corporation, or 
a profitable railroad, on behalf of such railroads in reorganization, in 
order to avoid disruptions in ordinary business relationships. Such 
obligations shall be limited to--
        (i) amounts claimed by suppliers (including private car lines) 
    of materials or services utilized or purchased in current rail 
    operations;
        (ii) claims by shippers arising from current rail services;
        (iii) payments to railroads for settlement of current interline 
    accounts and all other current accounts and obligations;
        (iv) claims of employees arising under the collective-bargaining 
    agreements of the railroads in reorganization in the region and 
    subject to section 153 of this title (including claims for accrued 
    vacation and wages and similar claims arising in connection with 
    labor and services performed);
        (v) claims of all employees or their personal representatives 
    for personal injuries or death and subject to the provisions of 
    Employers' Liability Act (45 U.S.C. 51-60);
        (vi) amounts required for adequate funding of accrued pension 
    benefits existing at the time of a conveyance or discontinuance of 
    service under employee pension benefit plans described in section 
    775(a) \2\ of this title;
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    \2\ See References in Text note below.
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        (vii) amounts required to provide adequate funding for payment, 
    when due, of claims deriving from membership in any employee 
    voluntary relief plan which provides benefits to its members and 
    their beneficiaries in the event of sickness, accident, disability, 
    or death, and to which both a railroad in reorganization and 
    employee members have made contributions;
        (viii) amounts required to provide adequate funding for 
    continuation, by the Corporation, of medical and life insurance 
    coverage and benefits for retired employees of railroads in 
    reorganization as required and limited by section 743(b)(6)(B) of 
    this title.
        (ix) amounts required to discharge the obligations of each such 
    railroad in reorganization to nonemployee claimants for personal 
    injuries suffered during the period such railroad has been in 
    reorganization; and
        (x) amounts required to discharge any obligation of a railroad 
    in reorganization in the region to the National Railroad Passenger 
    Corporation, arising out of a contract between such railroad in 
    reorganization and such Corporation under which such railroad in 
    reorganization is required to provide a suitable rail passenger 
    station, in any case in which such railroad in reorganization sold a 
    rail passenger station pursuant to a judicial order of condemnation 
    prior to April 1, 1976.

    (B) The Association shall make a loan pursuant to subparagraph (A) 
of this paragraph if, notwithstanding any other requirement of this 
subsection, it finds that the Corpration,\3\ the National Railroad 
Passenger Corporation, or a profitable railroad is entitled to a loan 
pursuant to section 743(b)(6), 774(e), or 774(g) \2\ of this title, or 
if, with respect to an obligation referred to in subparagraph (A) of 
this paragraph, it finds that--
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    \3\ So in original. Should be ``Corporation,''.
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        (i) provision for the payment of such obligation was not 
    included in the financial projections of the final system plan;
        (ii) such obligation arose from rail operations prior to the 
    date of conveyance of rail properties pursuant to section 743(b)(1) 
    of this title and is, under other applicable law, the responsibility 
    of a railroad in reorganization in the region, and a claim is 
    presented to a railroad in reorganization in the region, or the 
    Corporation within 2 years after October 19, 1976;
        (iii) the Corporation, the National Railroad Passenger 
    Corporation, or a profitable railroad has advised the Association 
    that the direct payment of such obligation by the Corporation, the 
    National Railroad Passenger Corporation, or a profitable railroad is 
    for services or materials, the furnishing of which served to avoid 
    disruptions in ordinary business relationships prior to the date of 
    conveyance of rail properties pursuant to section 743(b)(1) of this 
    title, or is necessary to avoid postconveyance disruptions in 
    ordinary business relationships;
        (iv) the transferor is unable to pay such obligation within a 
    reasonable period of time; and
        (v) with respect to loans made to the Corporation, the 
    procedures to be followed by the Corporation, in seeking 
    reimbursement from a railroad in reorganization in the region for an 
    obligation paid on its behalf under this subsection, have been 
    jointly agreed to by the Finance Committee and the Corporation, and 
    the joint agreement--
            (I) provides for the Corporation to receive reimbursement 
        from the Association for any expenses incurred in seeking 
        reimbursement from any railroad in reorganization in the region 
        for an obligation paid on its behalf under this subsection; and
            (II) includes a stipulation of the exact procedures the 
        Corporation shall undertake to avoid the finding, referred to in 
        paragraph (6)(A)(i) of this subsection, that it has not 
        exercised due diligence.

    (2) The trustees of each railroad in reorganization in the region 
shall attempt to negotiate agency agreements with the Corporation, the 
National Railroad Passenger Corporation, or a profitable railroad for 
the processing of all accounts receivable and accounts payable 
attributable to operations prior to the conveyance of property pursuant 
to section 743(b)(1) of this title and for the payment of only those 
accounts payable which relate to obligations of the estates identified 
in paragraph (1) of this subsection. If any railroad in reorganization 
in the region fails to conclude such an agreement within a reasonable 
time prior to such conveyance, the applicable reorganization courts, 
after giving all parties an opportunity to be heard, shall prescribe the 
terms of such an agency arrangement by order, giving due consideration 
to the need, wherever possible, to make such agreements uniform among 
the various estates. Nothing in this subsection shall be construed as 
permitting any district court of the United States having jurisdiction 
over the reorganization of a railroad in reorganization in the region to 
enjoin, restrain, or limit the Corporation, the National Railroad 
Passenger Corporation, or a profitable railroad from applying, to 
payment of the obligations of the estates identified in paragraph (1) of 
this subsection, amounts collected as (A) accounts receivable pursuant 
to this paragraph, (B) cash or other current assets identified pursuant 
to paragraph (3) of this subsection, or (C) proceeds of loans pursuant 
to paragraph (1) of this subsection. Any agency agreement executed prior 
to October 19, 1976, shall be deemed amended to the extent necessary to 
conform such agreement or order to the provisions of this paragraph. 
Nothing in this paragraph shall be construed to affect any payment made 
prior to October 19, 1976, with respect to obligations other than those 
identified in paragraph (1) of this subsection.
    (3) The Association may, not less than 30 days prior to the date of 
conveyance pursuant to section 743(b)(1) of this title, petition each 
district court of the United States having jurisdiction over the 
reorganization of a railroad in reorganization in the region for an 
order, which shall be entered prior to such conveyance, and which--
        (A) identifies that cash and other current assets of the estate 
    of such railroad which shall be utilized to satisfy obligations of 
    the estates identified in paragraph (1) of this subsection; and
        (B) provides for the application by the trustees of such 
    railroads and their agents, consistent with the principles of 
    reorganization under section 77 of the Bankruptcy Act and with the 
    agency agreement specified in paragraph (2) of this subsection, of 
    all such current assets, including cash available as of or 
    subsequent to such date of conveyance, to the payment in the 
    postconveyance period of the obligations of the estates identified 
    in paragraph (1) of this subsection.

    (4)(A) Each obligation of a railroad in reorganization in the region 
which is paid with financial assistance under paragraph (1) of this 
subsection shall be processed, on behalf of such railroad, by the 
Corporation, the National Railroad Passenger Corporation, or a 
profitable railroad, whichever is appropriate. An obligation of a 
railroad in reorganization in the region shall be paid, on behalf of 
such railroad, by the Corporation, the National Railroad Passenger 
Corporation, or a profitable railroad, whichever is appropriate, if--
        (i) such obligation is deemed by the Corporation, the National 
    Railroad Passenger Corporation, or a profitable railroad, whichever 
    is appropriate, to have been, on the date of conveyance of rail 
    properties pursuant to section 743(b)(1) of this title, the 
    obligation of a railroad in reorganization in the region;
        (ii) such obligation accrues after such date of conveyance but 
    as a result of rail operations conducted prior to such date, and the 
    trustees of such railroad in reorganization acknowledge that it is 
    an obligation of such railroad; or
        (iii) the district court of the United States having 
    jurisdiction over such railroad in reorganization in the region 
    approves such obligation as a valid administrative claim against 
    such railroad;

to the extent that payment is required under a loan agreement with the 
Association under such paragraph (1).
    (B) The Association shall resolve any disputes among the 
Corporation, the National Railroad Passenger Corporation, and a 
profitable railroad concerning which of them shall process and pay any 
particular obligation on behalf of a particular railroad in 
reorganization.
    (C) The Corporation, the National Railroad Passenger Corporation, or 
a profitable railroad shall have a direct claim, as a current expense of 
administration, for reimbursement from the estate of a railroad in 
reorganization in the region for all obligations of such estate (plus 
interest thereon) which are paid by the Corporation, the National 
Railroad Passenger Corporation, or a profitable railroad, as the case 
may be. The right of the Corporation or the National Railroad Passenger 
Corporation to receive reimbursement under this subparagraph from the 
estate of a railroad in reorganization in the region shall be reduced by 
the amount, if any, of loans, plus interest forgiven under paragraph (5) 
of this subsection.
    (D)(i) Except as provided in clause (ii) of this subparagraph, any 
funds held in an escrow account by a railroad in reorganization on 
October 19, 1976, which are thereafter determined to be cash and other 
current assets of the estate of such railroad in reorganization, for 
purposes of paragraph (3) of this subsection, shall be applied as 
follows--
        (I) first, to the reduction of any outstanding loans to the 
    Corporation by the Association, pursuant to paragraph (1) of this 
    subsection, the proceeds of which were used to discharge obligations 
    of such railroad in reorganization;
        (II) second, to the Association to the extent of any such loans 
    which have been forgiven pursuant to paragraph (5) of this 
    subsection; and
        (III) third, to the payment of any remaining obligations of such 
    railroad in reorganization, in accordance with the provision of the 
    agency agreement entered into pursuant to paragraph (2) of this 
    subsection.

    (ii) The manner of disposition set forth in clause (i) of this 
subparagraph shall not apply with respect to a railroad in 
reorganization if the Secretary (I) determines that a different 
disposition of assets is necessary to carry out a reorganization plan of 
such railroad in reorganization, and that such different disposition 
adequately protects the interests of the United States, and (II) 
transmits his determination to the court having jurisdiction over the 
reorganization of such railroad.
    (5)(A) If, at any time, the Finance Committee of the Association 
determines that the failure of the Corporation to receive full 
reimbursement with interest from the estate of a railroad in 
reorganization in the region for any obligation of such estate paid 
pursuant to this subsection could adversely affect the fairness and 
equity of the transfers and conveyances pursuant to section 743(b)(1) of 
this title, or that the failure of the National Railroad Passenger 
Corporation to receive such full reimbursement plus interest for any 
such obligation would be contrary to the public interest, the 
Association shall forgive the indebtedness, plus accrued interest, of 
the Corporation or of the National Railroad Passenger Corporation 
incurred pursuant to paragraph (1) of this subsection in the amount 
recommended by the Finance Committee. The Association shall have a 
direct claim, as a current expense of administration of the estate of 
such railroad in reorganization, equal to the amount by which loans of 
the Corporation or of the National Railroad Passenger Corporation, plus 
interest, have been forgiven. Such direct claim shall not be subject to 
any reduction by way of setoff, cross-claim, or counter-claim which the 
estate of such railroad in reorganization may be entitled to assert 
against the Corporation, the National Railroad Passenger Corporation, 
the Association, or the United States.
    (B) The direct claim of the Association under this paragraph, and 
any direct claim authorized under paragraph (4) of this subsection, 
shall be prior to all other administrative claims of the estate of a 
railroad in reorganization, except claims arising under trustee's 
certificates or from default on the payment of such certificates. The 
Corporation, the National Rail Passenger Corporation, or a profitable 
railroad, as the case may be, shall, with respect to each direct claim 
for reimbursement pursuant to paragraph (4) of this subsection, file a 
proof of administrative expense claim with the trustees of the railroad 
in reorganization from whom reimbursement is sought. Each such proof of 
administrative expense claim shall set forth, by category and amount, 
the obligations of such railroad in reorganization which were paid 
pursuant to such paragraph (4).
    (6)(A) Notwithstanding any other provision of this subsection, the 
Association shall forgive any loan made to the Corporation or the 
National Railroad Passenger Corporation pursuant to this subsection, 
plus accrued interest thereon, on the 3rd anniversary date of any such 
loan, except that the Association shall not forgive any loan or portion 
thereof, in accordance with this paragraph, if--
        (i) the Finance Committee makes an affirmative finding, with 
    respect to such loan or portion thereof, that--
            (I) the Corporation has not exercised due diligence in 
        executing the procedures adopted pursuant to paragraph (1)(B)(v) 
        of this subsection, and
            (II) the failure of the Association to forgive such loan or 
        portion thereof will not adversely affect the ability of the 
        Corporation to become financially self-sustaining;

        (ii) the Finance Committee so directs the Association; and
        (iii) neither House of the Congress disapproves such affirmative 
    finding and direction, in accordance with the following provisions 
    of this paragraph.

A copy of each such finding, the reasons therefor, and such direction 
made by the Finance Committee, together with the comments and 
recommendations thereon of the Board of Directors of the Association, 
shall be transmitted to the Congress by the Association within 10 days 
after the date on which the Finance Committee makes such finding and 
direction, or if not so transmitted, shall be transmitted by the Finance 
Committee. Each such finding and direction so transmitted shall become 
effective immediately, and shall remain in effect, unless, within the 
first period of 30 calendar days of continuous session of Congress after 
the date of transmittal of such finding and direction to Congress, 
either House of Congress disapproves such finding and direction in 
accordance with the procedures specified in section 688 of title 2. For 
purposes of this paragraph, continuity of session of Congress is broken 
only in the circumstances described in section 682(5) of title 2.
    (B) The Association shall have a direct claim, as a current expense 
of administration of the estate of the railroad in reorganization whose 
obligations were paid with the proceeds of loans forgiven under this 
paragraph, equal to the amount by which the loans, plus interest, have 
been forgiven. Such direct claim shall not be subject to any reduction 
by way of setoff, cross-claim, or counterclaim which the estate of such 
railroad in reorganization may be entitled to assert against the 
Corporation, the National Railroad Passenger Corporation, the 
Association, or the United States. The direct claim of the Association 
under this paragraph shall be prior to all other administrative claims 
of the estate of the railroad in reorganization, except claims arising 
under trustee's certificates or from default on the payment of such 
certificates.
    (7) For purposes of this subsection, the term ``Corporation'' 
includes a subsidiary of the Corporation.

(Pub. L. 93-236, title II, Sec. 211, Jan. 2, 1974, 87 Stat. 1001; Pub. 
L. 94-5, Sec. 5, Feb. 28, 1975, 89 Stat. 8; Pub. L. 94-210, title VI, 
Sec. 606, Feb. 5, 1976, 90 Stat. 92; Pub. L. 94-555, title II, 
Secs. 203(a)-(d), 220(a), Oct. 19, 1976, 90 Stat. 2617, 2619, 2620, 
2629; Pub. L. 95-611, Sec. 3(a), Nov. 8, 1978, 92 Stat. 3089; Pub. L. 
96-73, title II, Sec. 204(b), Sept. 29, 1979, 93 Stat. 556; Pub. L. 96-
101, Sec. 23, Nov. 4, 1979, 93 Stat. 746; Pub. L. 96-448, title IV, 
Secs. 407, 408, Oct. 14, 1980, 94 Stat. 1948; Pub. L. 105-178, title 
VII, Sec. 7203(b)(3), June 9, 1998, 112 Stat. 477.)

                       References in Text

    Section 77 of the Bankruptcy Act, referred to in subsecs. (a) and 
(h)(3)(B), was classified to section 205 of former Title 11, Bankruptcy. 
The Bankruptcy Act (act July 1, 1898, ch. 541, 30 Stat. 544, as amended) 
was repealed effective Oct. 1, 1979, by Pub. L. 95-598, Secs. 401(a), 
402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of which enacted 
revised Title 11. For current provisions relating to railroad 
reorganization, see subchapter IV (Sec. 1161 et seq.) of chapter 11 of 
Title 11.
    Section 763 of this title, referred to in subsec. (a), was repealed 
by Pub. L. 94-210, title VIII, Sec. 806, Feb. 5, 1976, 90 Stat. 143, 
eff. Apr. 1, 1978.
    The Employers' Liability Act (45 U.S.C. 51-60), referred to in 
subsec. (h)(1)(A)(v), is act Apr. 22, 1908, ch. 149, 35 Stat. 65, as 
amended, and is classified generally to chapter 2 (Sec. 51 et seq.) of 
this title. For complete classification of this Act to the Code, see 
Short Title note set out under section 51 of this title and Tables.
    Sections 774 and 775 of this title, referred to in subsec. 
(h)(1)(A)(vi), (B), were repealed by Pub. L. 97-35, title XI, 
Sec. 1144(a)(1), Aug. 13, 1981, 95 Stat. 669.

                          Codification

    In the closing par. of subsec. (h)(6)(A), ``section 688 of title 2'' 
and ``section 682(5) of title 2'' substituted for ``section 1017 of the 
Congressional Budget and Impoundment Control Act of 1974 (31 U.S.C. 
1407)'' and ``section 1011(5) of that Act (31 U.S.C. 1401(5))'', 
respectively, to reflect the transfer of sections 1407 and 1401 of 
former Title 31, Money and Finance, to sections 688 and 682 of Title 2, 
the Congress.


                               Amendments

    1998--Subsec. (i). Pub. L. 105-178 struck out heading and text of 
subsec. (i). Text read as follows: ``Upon application by the Corporation 
or any other railroad, the Secretary shall, pursuant to the provisions 
of and within the obligational limitations contained in sections 831 
through 833 of this title, guarantee obligations of the Corporation or 
such railroad for the purpose of electrifying high-density mainline 
routes if the Secretary finds that such electrification will return 
operating and financial benefits to the Corporation or such railroad and 
will facilitate compatibility with existing or renewed electrification 
systems. Upon application by the Corporation or by any railroad in 
reorganization in the region which receives a loan under subsection (a) 
of this section, the Secretary shall, pursuant to the provisions of and 
within the obligational limitations contained in sections 831 through 
833 of this title, guarantee obligations of the Corporation or such 
railroad for purposes of making capital improvements to coal export 
facilities. The aggregate unpaid principal amount of obligations which 
may be guaranteed by the Secretary under this paragraph shall not exceed 
$200,000,000 at any one time.''
    1980--Subsec. (d). Pub. L. 96-448, Sec. 408, substituted 
``Association is not required to make the findings with respect to 
subsections (e)(3) and (f) of this section and may'' for ``Association 
may'' in provision preceding par. (1), ``$7,500,000'' for ``$4,000,000'' 
in par. (2), and ``December 31, 1981'' for ``December 31, 1980'' in 
provision following par. (2).
    Subsec. (i). Pub. L. 96-448, Sec. 407, substituted ``Corporation or 
any other railroad, the Secretary'' for ``Corporation, the Secretary'', 
``Corporation or such railroad for the purpose'' for ``Corporation for 
the purpose'', and ``Corporation or such railroad and will facilitate'' 
for ``Corporation and will facilitate'' and inserted provision 
authorizing the Secretary, upon application and with regard to 
obligational limitations, to guarantee obligations of the Corporation or 
such railroad for the purposes of making capital improvements to coal 
export facilities.
    1979--Subsec. (d)(2). Pub. L. 96-101 substituted ``$4,000,000'' for 
``$2,000,000'', ``and determines that such railroad is making a good 
faith effort to establish an employee stock ownership plan for review 
and approval by the Association'' for ``and such railroad has in effect 
an employee stock ownership plan which has been approved by the 
Association'', and ``December 31, 1980'' for ``December 31, 1979'' and 
inserted provision requiring that any such approval be conditioned upon 
a written commitment that by December 31, 1980, the railroad will adopt 
an employee stock ownership plan which will acquire qualifying employer 
securities with a fair market value of $250,000.
    Subsec. (h)(1)(A)(viii). Pub. L. 96-73, Sec. 204(b)(1), substituted 
``funding for continuation, by the Corporation, of medical and life 
insurance coverage and benefits for retired employees of railroads in 
reorganization as required and limited by section 743(b)(6)(B) of this 
title'' for ``funding for payment, when due, of medical and life 
insurance benefits for employees (whether or not their employment was 
governed by a collective bargaining agreement) on account of their 
service with a railroad in reorganization prior to the date of 
conveyance pursuant to section 743(b)(1) of this title, and for 
individuals who retired, prior to such date of conveyance, from service 
with a railroad in reorganization''.
    Subsec. (h)(6). Pub. L. 96-73, Sec. 204(b)(2)(A)-(C), redesignated 
existing provisions as subpar. (A), and in subpar. (A) as so 
redesignated, redesignated former subpars. (A) to (C) as cls. (i) to 
(iii), respectively, and former cls. (i) and (ii) of former subpar. (A) 
as subcls. (I) and (II) of cl. (i), respectively, and added subpar. (B).
    1978--Subsec. (d). Pub. L. 95-611 inserted provision authorizing 
increase of loans to railroads until Dec. 31, 1979.
    1976--Subsec. (g). Pub. L. 94-210 added subsec. (g).
    Subsec. (h). Pub. L. 94-210 added subsec. (h).
    Subsec. (h)(1). Pub. L. 94-555, Sec. 203(a), increased aggregate 
principal amount of loan agreements, at any given time, to $350,000,000; 
substituted ``such railroads in reorganization'' for ``the transferors'' 
after ``railroad, in behalf of''; struck out ``and obligations'' after 
``all other current accounts''; inserted ``(including claims for accrued 
vacation and wages and similar claims arising in connection with labor 
and services performed)'' after ``section 153 of this title''; added 
clauses (vii) to (x) to subpar. (A); authorized Association to make 
loans pursuant to subpar. (A), as amended, and inserted reference to 
section 743(b)(6) of this title; inserted provisions that claim arising 
prior to conveyance of rail properties must be presented to a railroad 
in reorganization in the region, or the Corporation within 2 years after 
Oct. 19, 1976, and that loan requested is for direct payment made for 
services or materials, the furnishing of which avoided disruption of 
ordinary business relationships prior to date of conveyance or made to 
avoid postconveyance disruptions; and added subcls. (I) and (II) to cl. 
(V) relating to provisions to be included in joint agreement between 
Finance Committee and the Corporation.
    Subsec. (h)(2). Pub. L. 94-555, Sec. 203(b), inserted ``and for the 
payment of only those accounts payable which relate to the obligations 
of the estates identified in paragraph (1) of this subsection'' after 
``section 743(b)(1) of this title'', and inserted provisions relating to 
the jurisdiction of district courts in railroad reorganization 
proceedings.
    Subsec. (h)(4)(D). Pub. L. 94-555, Sec. 203(c), added subpar. (D).
    Subsec. (h)(5)(B). Pub. L. 94-555, Sec. 203(d), inserted provisions 
relating to filing proof of claim for administrative expense.
    Subsec. (h)(6)(A)(i). Pub. L. 94-555, Sec. 220(a), substituted 
``paragraph (1)(B)(v)'' for ``paragraph (1)(E)''.
    Subsec. (i). Pub. L. 94-210 added subsec. (i).
    1975--Subsec. (a). Pub. L. 94-5, Sec. 5(a), substituted ``for 
purposes of achieving the goals of this chapter'' for ``for purposes of 
assisting in the implementation of the final system plan''.
    Subsec. (e)(1). Pub. L. 94-5, Sec. 5(b), substituted ``achieve the 
goals of this chapter'' for ``carry out the final system plan''.
    Subsec. (f). Pub. L. 94-5, Sec. 5(c), substituted ``goals of this 
chapter'' for ``goals of the final system plan''.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-448 effective Oct. 1, 1980, see section 
710(a) of Pub. L. 96-448, set out as a note under section 1170 of Title 
11, Bankruptcy.


                    Effective Date of 1979 Amendment

    Amendment by Pub. L. 96-73 effective Nov. 4, 1978, see section 
501(b) of Pub. L. 96-73, set out as a note under section 743 of this 
title.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-555 effective Oct. 1, 1976, see section 303 
of Pub. L. 94-555, set out as a note under section 702 of this title.

Abolition of United States Railway Association and Transfer of Functions 
                             and Securities

    See section 1341 of this title.


           Applicability of National Environmental Policy Act

    Application of National Environmental Policy Act to actions of 
Commission not affected by title VI of Pub. L. 94-210, see section 619 
of Pub. L. 94-210, set out as a note under section 791 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 720, 726, 743, 797h, 1112 of 
this title; title 49 section 306.
