
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: 45USC725]

 
                           TITLE 45--RAILROADS
 
                CHAPTER 16--REGIONAL RAIL REORGANIZATION
 
            SUBCHAPTER II--UNITED STATES RAILWAY ASSOCIATION
 
Sec. 725. Interim agreements


(a) Purposes

    Prior to the date upon which rail properties are conveyed to the 
Corporation under this chapter, the Secretary, with the approval of the 
Association, is authorized to enter into agreements with the trustees of 
the railroads in reorganization in the region (or railroads leased, 
operated, or controlled by railroads in reorganization)--
        (1) to perform the program maintenance on designated rail 
    properties of such railroads until the date rail properties are 
    conveyed under this chapter;
        (2) to improve rail properties of such railroads; and
        (3) to acquire rail properties for lease or loan to any such 
    railroads until the date such rail properties are conveyed under 
    this chapter, and subsequently for conveyance pursuant to the final 
    system plan, or to acquire interests in such rail properties owned 
    by or leased to any such railroads or in purchase money obligations 
    therefor.

(b) Conditions

    Agreements pursuant to subsection (a) of this section shall contain 
such reasonable terms and conditions as the Secretary may prescribe. In 
addition, agreements under paragraphs (1) and (2) of subsection (a) of 
this section shall provide that--
        (1) to the extent that physical condition is used as a basis for 
    determining, under section 716(f) or 743(c) of this title, the value 
    of properties subject to such an agreement and designated for 
    transfer to the Corporation under the final system plan, the 
    physical condition of the properties on the effective date of the 
    agreement shall be used; and
        (2) in the event that property subject to the agreement is sold, 
    leased, or transferred to an entity other than the Corporation, the 
    trustees or railroad shall pay or assign to the Secretary that 
    portion of the proceeds of such sale, lease, or transfer which 
    reflects value attributable to the maintenance and improvement 
    provided pursuant to the agreement.

(c) Obligations

    Notwithstanding section 720(b) of this title, the Association shall 
issue obligations under section 720(a) of this title in an amount 
sufficient to finance such agreements and shall require the Corporation 
to assume any such obligations. The aggregate amount of obligations 
issued under this section and outstanding at any one time shall not 
exceed $300,000,000. The Association, with the approval of the 
Secretary, shall designate in the final system plan that portion of such 
obligations issued or to be issued which shall be refinanced and the 
terms thereof, and that portion from which the Corporation shall be 
released of its obligations.

(d) Conveyance

    The Secretary may convey to the Corporation or any subsidiary 
thereof, with or without receipt of consideration, any property or 
interests acquired by, transferred to, or otherwise held by the 
Secretary pursuant to this section or section 723 of this title.

(Pub. L. 93-236, title II, Sec. 215, Jan. 2, 1974, 87 Stat. 1004; Pub. 
L. 94-5, Sec. 7, Feb. 28, 1975, 89 Stat. 8; Pub. L. 94-210, title VI, 
Sec. 607(i), Feb. 5, 1976, 90 Stat. 97.)


                               Amendments

    1976--Subsec. (d). Pub. L. 94-210 inserted ``or any subsidiary 
thereof'' after ``Corporation''.
    1975--Pub. L. 94-5 expanded provisions covering interim agreements 
for the acquisition, maintenance, and improvement of railroad 
properties, substituted provisions setting out the requisite conditions 
of such agreements for provisions making only a general requirement that 
such agreements identify the type and quality of improvements to be 
made, raised from $150,000,000 to $300,000,000 the maximum amount of 
outstanding obligations, and substituted provisions directing the 
Association in the final system plan to designate that portion of the 
obligations which shall be refinanced and that portion from which the 
Corporation shall be released of its obligations for provisions 
prohibiting the Secretary's entry into agreements unless he issues 
regulations setting forth procedures and guidelines for the 
administration of this section, substituted provisions authorizing the 
Secretary to convey to the Corporation property or interests held by the 
Secretary pursuant to this section or section 723 of this title for 
provisions relieving the Corporation of the duty of compensating 
railroads in reorganization for that portion of transferred properties 
attributable to the acquisition, maintenance, or improvement of such 
properties under this section.

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 723, 726, 743 of this title.
