
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: 45USC726]

 
                           TITLE 45--RAILROADS
 
                CHAPTER 16--REGIONAL RAIL REORGANIZATION
 
            SUBCHAPTER II--UNITED STATES RAILWAY ASSOCIATION
 
Sec. 726. Debentures and series A preferred stock


(a) General

    The Association is authorized, in accordance with the provisions of 
this section, and such rules and regulations as it may prescribe, to 
invest from time to time in the securities of the Corporation by 
purchasing (1) up to $1,000,000,000 of debentures issued by the 
Corporation, and (2) after the acquisition of such debentures, up to 
$2,629,000,000 of the series A preferred stock of the Corporation.

(b) Purposes and procedure for investment

    (1) The Association is authorized to purchase debentures and, 
thereafter, series A preferred stock of the Corporation at such times 
and in such amounts as may be required and requested by the Corporation 
in accordance with the terms and conditions governing such purchases 
(which shall be prescribed by the Association), to provide--
        (A) for the modernization, rehabilitation and maintenance of 
    rail properties of the Corporation;
        (B) for the acquisition of equipment and other capital needs;
        (C) for the refinancing of indebtedness which was incurred by 
    the Corporation under section 721 of this title or which was 
    incurred under section 725 of this title and assumed by the 
    Corporation; or
        (D) working capital as contemplated by the final system plan.

    (2) Purchases of up to $1,000,000,000 of debentures and, thereafter, 
of up to $2,300,000,000 of series A preferred stock shall be made by the 
Association as required and requested by the Corporation, unless the 
Finance Committee makes an affirmative finding that--
        (A) the Corporation has failed in any material respect to comply 
    with any covenants or undertakings made to the Association and such 
    failure remains uncorrected;
        (B) the Corporation has failed substantially (as determined by 
    performance within the margins prescribed by the Board of Directors) 
    to attain the overall operating (including rehabilitation) and 
    financial results projected for the Corporation in the final system 
    plan (including any modifications of such projected results and of 
    the performance margins applicable to such projected results which 
    are jointly approved by the Finance Committee and the Board of 
    Directors and which would improve the possibility that the 
    Corporation will attain such projected results and perform within 
    such margins, as modified); or
        (C) it is not reasonably likely, taking into consideration all 
    relevant factors including the overall operating (including 
    rehabilitation) and financial results achieved by the Corporation, 
    that the Corporation will be able to become financially self-
    sustaining without requiring Federal financial assistance 
    substantially in excess of the amounts authorized in this section.

    (3)(A) Amounts transferred to the Association pursuant to section 
509(b)(1) \1\ of the Railroad Revitalization and Regulatory Reform Act 
of 1976 may be used to purchase series A preferred stock of the 
Corporation to provide for the implementation by the Corporation of a 
program to reduce the Corporation's work force, if the Finance Committee 
finds that the implementation of such program will result in substantial 
savings to the United States.
---------------------------------------------------------------------------
    \1\ See References in Text note below.
---------------------------------------------------------------------------
    (B) An employee who ceases to be an employee as a result of the 
reduction of work force under a program implemented pursuant to this 
paragraph shall not, by reason of so ceasing to be an employee, or by 
reason of any work or employment entered into after so ceasing to be an 
employee, lose such employee's current connection with the railroad 
industry for the purposes of the Railroad Retirement Act of 1974 [45 
U.S.C. 231 et seq.].
    (4) Purchases of up to $329,000,000 of a series A preferred stock 
shall be made by the Association, subject to the availability of 
appropriations, as required and requested by the Corporation, if the 
Finance Committee makes an affirmative finding that the Corporation has 
taken appropriate action to eliminate losses on light density lines and 
other lines which are unprofitable. Such action shall include the 
imposition of surcharges on such lines, the abandonment of such lines, 
and the transfer of such lines.
    (5) The authority of the Association to purchase debentures or 
series A preferred stock of the Corporation shall terminate October 21, 
1986.

(c) Finding, direction, and review by Congress

    (1) If the Finance Committee makes an affirmative finding pursuant 
to subsection (b)(2) of this section, it may direct the Association--
        (A) not to purchase any debentures or series A preferred stock 
    of the Corporation after the date of such affirmative finding; or
        (B) to purchase debentures or series A preferred stock of the 
    Corporation, after the date of such affirmative finding, only in 
    such amounts, at such times, and on such terms and conditions 
    (notwithstanding subsection (e)(1) of this section) as the Finance 
    Committee determines to be appropriate to the role of the 
    Association as an investor in such debentures and series A preferred 
    stock.

    (2) A copy of each affirmative finding, the reasons therefor, and 
each direction made by the Finance Committee under paragraph (1) of this 
subsection, 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 
direction so transmitted shall become finally effective and is required 
to be implemented by the Association, unless within the first period of 
30 calendar days of continuous session of Congress after the date of its 
transmittal to Congress either House of Congress disapproves such 
direction (except that such direction shall become finally effective 
immediately upon approval of such direction by both Houses of Congress) 
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. 
During review by the Association and Congress, the Association shall 
take no action inconsistent with the direction of the Finance Committee 
pursuant to paragraph (c)(1) of this section, except to the extent the 
Association finds necessary, in its discretion, to assure continuous 
orderly operation of the Corporation.
    (3) If the Congress, pursuant to paragraph (2) of this subsection, 
disapproves a direction submitted to the Association pursuant to 
paragraph (1) of this subsection, the Association shall continue to 
purchase the debentures or series A preferred stock of the Corporation 
as otherwise provided in this subchapter until such time as a direction 
is submitted under this section which is not so disapproved (or 
affirmatively approved). The powers of the Association and of the Board 
of Directors of the Association shall remain in effect except to the 
extent modified by any such direction. If any such direction is 
disapproved by either House of Congress, the Finance Committee may, not 
earlier than 30 days after the date of such disapproval, make (and the 
Board of Directors of the Association shall transmit) any additional 
affirmative finding and direction with respect to the same matter, which 
direction shall become effective in accordance with paragraph (2) of 
this subsection. An affirmative finding and direction under this 
subsection, or action by the Association during a review thereof by the 
Congress, may not be held unlawful or set aside by any reviewing court 
on the ground that such finding and direction or action were not 
adequate to meet the requirements of subparagraph (A), (E), or (F) of 
section 706(2) of title 5.
    (4) Notwithstanding any other provision of this section, or any 
terms and conditions governing its purchase of securities of the 
Corporation, the Association shall, upon written application by the 
Corporation at least 30 days prior to such investment, make an initial 
investment in debentures of the Corporation within 60 days after the 
date of conveyance of rail properties pursuant to section 743(b)(1) of 
this title. Such initial investment shall be limited to such amounts as 
the Association and Finance Committee, acting jointly, determine are 
necessary for the continued and orderly operations of the Corporation 
prior to any additional investment.
    (5) Not later than 60 days after the date of conveyance pursuant to 
section 743(b)(1) of this title, the Association shall select 6 
individuals to serve as members of the Board of Directors of the 
Corporation, subject to the provisions of section 741(d) of this title.

(d) Terms and conditions

    Notwithstanding any other provision of State law, the debentures and 
the series A preferred stock of the Corporation shall have such terms 
and conditions, not inconsistent with the final system plan or this 
subchapter, as may be prescribed by the Association, except as follows:
        (1) The Corporation shall not be required to issue to the 
    Association additional shares of series A preferred stock of the 
    Corporation as a dividend on any such stock.
        (2) The dividends payable on series A preferred stock of the 
    Corporation shall not be cumulative and shall be paid in cash when 
    and to the extent that there is ``cash available for restricted cash 
    payments'', as that term is defined in the final system plan.
        (3) After the Association calls for redemption of the 
    certificates of value, no shares of series A preferred stock of the 
    Corporation shall be issued in lieu of interest on the debentures of 
    the Corporation and, to the extent such interest is not payable in 
    cash by reason of the absence of sufficient ``cash available for 
    restricted cash payment'', the Corporation shall deliver to the 
    holders of the debentures contingent interest notes in a face amount 
    equal to such unpaid interest.
        (4) If the Board of Directors of the Association and the Finance 
    Committee, acting jointly, modify the terms or conditions governing 
    the purchase of debentures or series A preferred stock of the 
    Corporation pursuant to subsection (e)(1) of this section, or if the 
    Finance Committee waives compliance with any term, condition, 
    provision, or covenant of such securities pursuant to subsection 
    (e)(2) of this section, the Finance Committee may require the 
    Corporation to issue contingent interest notes in such amount as, in 
    the determination of the Finance Committee, will provide protection 
    for the United States, in the event of bankruptcy, reorganization, 
    or receivership of the Corporation, equal to the protection the 
    United States would have had in the absence of such modification or 
    waiver.
        (5) The contingent interest notes issued pursuant to this 
    section shall bear interest compounded annually at the rate of 8 
    percent per annum and such notes and the accumulated interest 
    thereon shall be payable only in the event of bankruptcy, 
    reorganization, or receivership of the Corporation occurring prior 
    to the repayment and redemption of all outstanding debentures and 
    accumulated series A preferred stock of the Corporation. The 
    contingent interest notes and the accumulated interest thereon shall 
    have the same priority in bankruptcy, reorganization, or 
    receivership as the debentures of the Corporation. The other terms 
    and conditions of the contingent interest notes shall be as set 
    forth in an agreement to be entered into between the Association and 
    the Corporation prior to issuance of any debentures.

(e) Modifications, waivers, and conversions

    (1) The Board of Directors of the Association and the Finance 
Committee, acting jointly, may agree with the Corporation to modify any 
of the terms and conditions governing the purchase by the Association of 
securities of the Corporation, upon a finding that such action is 
necessary or appropriate to achieve the purposes of this chapter or the 
goals of the final system plan.
    (2) The Finance Committee may, in its discretion and upon a finding 
that such action is necessary or appropriate to achieve the purposes of 
this chapter or the goals of the final system plan, waive compliance 
with any term, condition, provision, or covenant of the securities of 
the Corporation held by the Association, including any provision of such 
securities with respect to redemption of principal or issuance price, 
payment of interest or dividends, or any term or condition governing the 
purchase of such securities.
    (3) Notwithstanding any provision of State law, there shall be no 
conversion of the debentures of the Corporation into series A preferred 
stock of the Corporation, as provided in the terms and conditions of the 
debentures and pursuant to the final system plan, unless the Board of 
Directors of the Association and the Finance Committee jointly determine 
to effect such conversion.

(f) Employee stock ownership plan

    (1) The Association shall not invest the final $345,000,000 of the 
additional investment in the Corporation authorized by the Regional Rail 
Reorganization Act Amendments of 1978 unless and until (A) the 
Corporation has in effect an employee stock ownership plan which 
satisfies the requirements of paragraphs (2) and (3), and (B) the 
requirements of the other paragraphs of this subsection have been 
satisfied.
    (2) The employee stock ownership plan shall:
        (A) provide:
            (i) for a transfer to the plan and allocation to the 
        accounts of plan participants in periodic installments of Series 
        A preferred stock of the Corporation with a stated redemption 
        value of at least $345,000,000 or any other securities in an 
        amount determined by the Association, with the concurrence of 
        the Finance Committee, as constituting a meaningful interest in 
        the Corporation, or any combination thereof so determined by the 
        Association, with the concurrence of the Finance Committee. The 
        use of Series A preferred stock to fund the Employee Stock 
        Ownership Plan shall not be interpreted to relieve ConRail of 
        the responsibility for repaying in full to the United States 
        Railway Association its indebtedness as represented by all 
        shares originally issued under Public Law 94-210 and this 
        chapter;
            (ii) for immediate vesting of the rights of participants to 
        such securities upon allocation, subject to defeasance as a 
        result of the plan's termination which termination shall occur 
        in the event that, by the end of the 120th month beginning after 
        the month in which securities or interests therein are first 
        allocated to participants' accounts, the Corporation has not 
        attained for two consecutive quarters positive net income and a 
        freight labor cost to freight revenue ratio equal to the average 
        such ratio for all Class I railroads in 1977, as determined 
        pursuant to procedures adopted by the Corporation pursuant to 
        regulations promulgated by the Association with the concurrence 
        of the Finance Committee;

        (B) be an employee benefit plan which is designed to invest 
    primarily in employer securities;
        (C) meets such other requirements (similar to requirements 
    applicable to employee stock ownership plans as defined in section 
    4975(e)(7) of title 26) as the Secretary of the Treasury or his 
    delegate may describe;
        (D) have been approved by the Board of Directors of the 
    Corporation to the extent and in the manner which may be required by 
    the Corporation's articles of incorporation and bylaws then in 
    effect; and
        (E) have been prepared in consultation with, and been approved 
    by, the Association and the Finance Committee.

    (3) Notwithstanding any other provision of law, if a plan does not 
meet the requirements of section 401 of title 26--
        (A) stock transferred under paragraph (2) and allocated to the 
    account of any participant under paragraph (2) shall not be 
    considered income of the participant or his beneficiary under title 
    26 until such stock or dividends are actually distributed or made 
    available to the participant or his beneficiary and, at such time, 
    shall be taxable under section 72 of title 26 (treating the 
    participant or his beneficiary as having a basis of 0 in the stock);
        (B) no amount shall be allocated to any participant under the 
    plan in excess of the amount which might be allocated if the plan 
    met the requirements of section 401 of title 26; and
        (C) the plan must meet the requirements of sections 410 and 415 
    of title 26.

    (4) The Corporation shall adopt such terms and conditions governing 
the securities of interests therein to be transferred to the plan 
(including limitations on voting rights) as the Association, with the 
concurrence of the Finance Committee, determines are necessary to 
protect reasonably the interests of the United States in the litigation 
pursuant to section 743(c) of this title and in the event of any action 
to further reorganize or restructure the Corporation's assets or capital 
structure.
    (5) The Corporation, the Association, and a representative appointed 
by the Chairman of the Railway Labor Executives' Association as 
representative of all the classes or crafts of employees of the 
Corporation shall engage in negotiations to agree upon a plan in 
accordance with the provisions of this subsection. For purposes of this 
subsection, the Railway Labor Executives' Association shall be deemed to 
represent all of the representatives of crafts or classes of employees 
of the Corporation and its subsidiaries as though that organization held 
powers of attorney from each representative of a craft or class for the 
limited purposes of negotiating and agreeing upon an employee stock 
ownership plan. The parties shall incorporate their agreement into a 
written plan instrument specifying the terms and conditions set forth in 
this subsection and such other terms and conditions as they may decide 
upon, with the concurrence of the Finance Committee, unless the parties 
are unable to reach on an agreement on the plan following the exertion 
of every reasonable effort to do so, in accordance with the Railway 
Labor Act [45 U.S.C. 151 et seq.], in which event, the Corporation and 
the Association, with the concurrence of the Finance Committee, shall 
establish a written plan with such terms and conditions as they may 
agree upon in accordance with this subsection. The plan shall not be 
subject to change under the provisions of section 6 of the Railway Labor 
Act [45 U.S.C. 156] until after such time as securities have been 
distributed from the plan to the participants in the plan or their 
beneficiaries pursuant to the terms of the plan. Within one year after 
November 1, 1978, the Corporation shall transmit a draft of such plan to 
the Congress and shall report on its progress in establishing and 
administering the plan. The report shall include recommendations of 
contractual and statutory provisions necessary to reasonably (A) exempt 
any Trustee of the plan, the Corporation, the Association, any member of 
the Finance Committee, and any other person from any fiduciary duty, 
responsibility or liability for the acquisition of, investment in, or 
retention of any security or interest therein of the Corporation or for 
any other transaction contemplated by this subsection and (B) provide 
for the United States to indemnify, defend, and hold harmless such 
persons against any and all liabilities, claims, actions, judgments, 
amounts paid in settlement, and costs and expenses actually incurred in 
connection with any matter so exempted in which it is determined that 
such persons were acting in good faith and in a manner they believed to 
not be opposed to the best interests of the plan.
    (6) Within fourteen months of November 1, 1978, the Association 
shall report to the Congress on the draft plan and on any legal obstacle 
to the ability of the Corporation to effectuate and implement an 
employee stock ownership plan of the nature contemplated by this 
subsection, including specific recommendations on amendments to this 
subsection and other relevant laws which would harmonize the 
requirements of this subsection with those other laws. The Department of 
Transportation and the Department of the Treasury, as each finds 
appropriate, shall provide separate comments to the Association for 
inclusion with such report.
    (7) For the purposes of this subsection, the officers of each duly 
authorized representative of the crafts or classes of the employees of 
the Corporation who have been given leaves of absence by the Corporation 
to serve as such officers, are to be eligible to participate in such 
plan on the same basis as are employees whose employment is governed by 
a collective bargaining agreement with the Corporation.
    (8)(A) Except as provided in subparagraph (B) of this paragraph, no 
person described in subparagraph (C) of this paragraph shall have or be 
subject to any fiduciary responsibility, obligation, or duty, nor shall 
any such person be subject to civil liability, under any Federal or 
State law, as a fiduciary or otherwise--
        (i) in connection with the employee stock ownership plan and 
    related trust established by the Corporation pursuant to the 
    requirements of this subsection or with ConRail Equity Corporation 
    (I) on account of any reorganization or restructuring of the 
    Corporation, its successors or assigns, or their assets or capital 
    structure, or (II) on account of any action taken or not taken by 
    the Corporation which may affect its ability to attain the 
    performance levels established in connection with the plan pursuant 
    to paragraph (2)(A)(ii) of this subsection;
        (ii) for or in connection with the establishment, continuation 
    or implementation of the plan and related trust or of ConRail Equity 
    Corporation or the acquisition of, investment in or retention of any 
    security of the Corporation or ConRail Equity Corporation, or of any 
    of their successors and assigns, by the plan or ConRail Equity 
    Corporation, or the disposition of any such security to the extent 
    that such disposition is made in connection with a reorganization or 
    restructuring of the Corporation, its successors and assigns, or 
    their assets or capital structure, as directed or approved by or on 
    behalf of the Association or the United States, or the acquisition 
    or retention of any cash, security or other property received in 
    connection with any such reorganization or restructuring; or
        (iii) for or in connection with any other action taken or not 
    taken pursuant to any term or condition of the plan or related trust 
    agreement or of the articles of incorporation or bylaws of ConRail 
    Equity Corporation.

Any directions described in clauses (i)(I), (ii), or (iii) shall be 
taken at the direction, or with the consent, of the Association or of 
the Secretary or his designate.
    (B) Subparagraph (A) of this paragraph shall not be interpreted to 
relieve any person from any fiduciary or other responsibility, 
obligation or duty under any Federal or State law to take or not to take 
actions with respect to the plan in connection with (i) receiving 
contributions, (ii) exercising custodial responsibilities, (iii) 
determining eligibility to participate in the plan, (iv) calculating, 
determining and paying benefits, (v) processing and deciding claims, 
(vi) preparing and distributing plan information, benefit statements, 
returns and reports, (vii) maintaining plan records, (viii) appointing 
plan fiduciaries and other persons to advise or assist in plan 
administration and (ix) other than as provided in subparagraph (A), 
acquiring, holding or disposing of plan assets.
    (C) For purposes of subparagraph (A) of this paragraph, the term 
``person'' includes each of the following:
        (i) the trustee or trustees of the plan, the Corporation and its 
    subsidiaries, ConRail Equity Corporation, the Association, and any 
    of their successors and assigns;
        (ii) each director, officer, employee and agent of the 
    Corporation of any of its subsidiaries, of ConRail Equity 
    Corporation, of the plan, of the Association or of any of their 
    successors and assigns; and
        (iii) each member of the Finance Committee and any of their 
    employees and agents.

    (D) Neither this paragraph nor paragraph (9) of this subsection 
shall be construed to grant immunity from any criminal law of the United 
States or of any State or the District of Columbia.
    (9) The United States shall indemnify, defend, and hold harmless the 
persons described in paragraph (8)(C) of this subsection from and 
against any and all liabilities, claims, actions, judgments, amounts 
paid in settlement, and costs and expenses (including reasonable fees of 
accountants, experts, and attorneys) actually incurred in connection 
with the establishment, implementation, or operation of the plan or 
ConRail Equity Corporation or with any transaction which is required by 
or is appropriate to effectuate fully the provisions of this subsection, 
except as may arise in connection with the execution of a 
responsibility, obligation, or duty excluded from paragraph (8)(A) by 
paragraph (8)(B), if it is determined that such persons were acting in 
good faith. The indemnity provided in this paragraph shall be a full 
faith and credit obligation of the United States.
    (10) All securities of the Corporation, all securities of any 
subsidiary of the Corporation and of ConRail Equity Corporation, and all 
interests in the employee stock ownership plan which are issued or 
transferred in connection with the employee stock ownership plan 
established by the Corporation pursuant to the requirements of this 
subsection shall be deemed for all purposes to have been issued subject 
to and authorized and approved pursuant to section 11301(b) \2\ of title 
49 and any corresponding provision of any successor statute.
---------------------------------------------------------------------------
    \2\ See References in Text note below.
---------------------------------------------------------------------------

(g) Authorization of appropriations; reappropriation of funds

    (1) There is authorized to be appropriated to the Association 
$3,629,000,000 to be used for the purchase of securities of the 
Corporation in accordance with this section. All sums received by the 
Association on account of the holding or disposition of any such 
securities shall be deposited in the general fund of the Treasury.
    (2) To the extent provided in appropriation Acts, any funds 
appropriated under the authority of paragraph (1) of this subsection 
prior to January 14, 1983, may be reappropriated to the Secretary, to 
facilitate the transfer of rail commuter services from the Corporation 
to other operators, for distribution under the statutory provisions of 
section 1139(b) of the Northeast Rail Service Act of 1981.

(Pub. L. 93-236, title II, Sec. 216, as added Pub. L. 94-210, title VI, 
Sec. 605, Feb. 5, 1976, 90 Stat. 89; amended Pub. L. 95-565, Secs. 2, 3, 
Nov. 1, 1978, 92 Stat. 2397; Pub. L. 96-254, title I, Sec. 118, May 30, 
1980, 94 Stat. 406; Pub. L. 96-448, title IV, Sec. 405(b)(2), title VII, 
Sec. 703(e), (f)(1), (2), Oct. 14, 1980, 94 Stat. 1946, 1964, 1965; Pub. 
L. 97-468, title V, Sec. 504(b), Jan. 14, 1983, 96 Stat. 2552; Pub. L. 
99-509, title IV, Sec. 4011(d), Oct. 21, 1986, 100 Stat. 1896; Pub. L. 
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095.)

                       References in Text

    Section 509 of the Railroad Revitalization and Regulatory Reform Act 
of 1976, referred to in subsec. (b)(3)(A), was classified to section 829 
of this title prior to repeal by Pub. L. 105-178, title VII, 
Sec. 7203(a)(2), June 9, 1998, 112 Stat. 477.
    The Railroad Retirement Act of 1974, referred to in subsec. 
(b)(3)(B), is act Aug. 29, 1935, ch. 812, as amended generally by Pub. 
L. 93-445, title I, Sec. 101, Oct. 16, 1974, 88 Stat. 1305, which is 
classified generally to subchapter IV (Sec. 231 et seq.) of chapter 9 of 
this title. For further details and complete classification of this Act 
to the Code, see Codification note set out preceding section 231 of this 
title, section 231t of this title, and Tables.
    The Regional Rail Reorganization Act Amendments of 1978, referred to 
in subsec. (f)(1), probably means Pub. L. 95-565, Nov. 1, 1978, 92 Stat. 
2397, as amended, known as the United States Railway Association 
Amendments Act of 1978, which amended sections 726, 747, and 825 of this 
title and section 975 of Title 43, Public Lands, and enacted a provision 
set out as a note under section 975 of Title 43. For complete 
classification of this Act to the Code, see Short Title of 1978 
Amendment note set out under section 701 of this title and Tables.
    Public Law 94-210, referred to in subsec. (f)(2)(A)(i), is Pub. L. 
94-210, Feb. 5, 1976, 90 Stat. 31, as amended, known as the Railroad 
Revitalization and Regulatory Reform Act of 1976. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 801 of this title and Tables.
    The Railway Labor Act, referred to in subsec. (f)(5), is act May 20, 
1926, ch. 347, 44 Stat. 577, as amended, which is classified principally 
to chapter 8 (Sec. 151 et seq.) of this title. For complete 
classification of this Act to the Code, see section 151 of this title 
and Tables.
    Section 11301(b) of title 49, referred to in subsec. (f)(10), was 
omitted and a new section 11301 enacted in the general amendment of 
subtitle IV of Title 49, Transportation, by Pub. L. 104-88, title I, 
Sec. 102(a), Dec. 29, 1995, 109 Stat. 804, 837. The new section 11301 
does not relate to issuance of securities.
    Section 1139(b) of the Northeast Rail Service Act of 1981, referred 
to in subsec. (g)(2), is section 1139(b) of Pub. L. 97-35, title XI, 
Aug. 13, 1981, 95 Stat. 652, which is set out as a note under section 
744a of this title.

                          Codification

    In subsec. (c)(2), ``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

    1986--Subsec. (b)(5). Pub. L. 99-509 added par. (5).
    Subsec. (f)(2)(C), (3). Pub. L. 99-514 substituted ``Internal 
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'' wherever 
appearing, which for purposes of codification was translated as ``title 
26'' thus requiring no change in text.
    1983--Subsec. (g). Pub. L. 97-468 designated existing provisions as 
par. (1) and added par. (2).
    1980--Subsec. (a). Pub. L. 96-448, Sec. 703(f)(1), substituted 
``$2,629,000,000'' for ``$2,300,000,000''.
    Subsec. (b)(3). Pub. L. 96-448, Sec. 405(b)(2), added par. (3).
    Subsec. (b)(4). Pub. L. 96-448, Sec. 703(e), added par. (4).
    Subsec. (f)(5). Pub. L. 96-254, Sec. 118(a), (b), inserted 
provisions that the plan not be subject to change under the provisions 
of section 6 of the Railway Labor Act until after such time as 
securities have been distributed from the plan to the participants in 
the plan or their beneficiaries pursuant to the terms of the plan and 
that, for purposes of this subsection, the Railway Labor Executives' 
Association shall be deemed to represent all of the representatives of 
crafts or classes of employees of the Corporation and its subsidiaries 
as though that organization held powers of attorney from each 
representative of a craft or class for the limited purposes of 
negotiating and agreeing upon an employee stock ownership plan.
    Subsec. (f)(8) to (10). Pub. L. 96-254, Sec. 118(c), added pars. (8) 
to (10).
    Subsec. (g). Pub. L. 96-448, Sec. 703(f)(2), substituted 
``$3,629,000,000'' for ``$3,300,000,000''.
    1978--Subsec. (a). Pub. L. 95-565, Sec. 2(a), substituted 
``$2,300,000,000'' for ``$1,100,000,000''.
    Subsec. (b)(2). Pub. L. 95-565, Sec. 2(b), substituted 
``$2,300,000,000'' for ``$1,100,000,000''.
    Subsecs. (f), (g). Pub. L. 95-565, Secs. 2(c), 3, added subsec. (f), 
redesignated former subsec. (f) as (g), and substituted 
``$3,300,000,000'' for ``$2,100,000,000''.


                    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.

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 712, 721, 727, 741, 1342 of 
this title; title 49 section 306.
