
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: 45USC743]

 
                           TITLE 45--RAILROADS
 
                CHAPTER 16--REGIONAL RAIL REORGANIZATION
 
              SUBCHAPTER III--CONSOLIDATED RAIL CORPORATION
 
Sec. 743. Valuation and conveyance of rail properties


(a) Deposit with court

    Within 10 days after delivery of a certified copy of a final system 
plan pursuant to section 719(c) of this title--
        (1) the Corporation, in exchange for the rail properties of the 
    railroads in reorganization in the region and of railroads leased, 
    operated, or controlled by railroads in reorganization in the region 
    to be transferred to the Corporation or any subsidiary thereof, 
    shall deposit with the special court all of the stock and other 
    securities of the Corporation and certificates of value issued by 
    the Association designated in the final system plan to be exchanged 
    for such rail properties;
        (2) each profitable railroad operating in the region and each 
    state or responsible person (including a government entity) 
    purchasing rail properties from a railroad in reorganization in the 
    region, or from a railroad leased, operated, or controlled by a 
    railroad in reorganization in the region, as provided in the final 
    system plan shall deposit with the special court the compensation to 
    be paid for such rail properties.

(b) Conveyance of rail properties

    (1) The special court shall, within 10 days after deposit under 
subsection (a) of this section of the securities of the Corporation, 
certificates of value issued by the Association, and compensation from 
the profitable railroads operating in the region, States, and 
responsible persons, order the trustee or trustees of each railroad in 
reorganization in the region to convey forthwith to the Corporation or 
any subsidiary thereof, the respective profitable railroads operating in 
the region, States, and responsible persons all right, title, and 
interest in the rail properties of such railroad in reorganization and 
shall itself order the conveyance of all right, title, and interest in 
the rail properties of any person leased, operated, or controlled by 
such railroad in reorganization that are to be conveyed to them under 
the final system plan as certified to such court under section 719(d) of 
this title. In any case where the special court orders the trustee or 
trustees of a railroad in reorganization in the region to execute and 
deliver deeds or other instruments conveying rail properties to the 
Corporation or a subsidiary thereof or to a profitable railroad 
operating in the region or a State or responsible person, those deeds or 
other instruments may be executed, acknowledged, and delivered on behalf 
of the trustee or trustees by any person or persons who have been duly 
authorized to perform such acts on behalf of the trustee or trustees by 
the district court of the United States or any other court having 
jurisdiction over the respective railroad in reorganization in the 
region. Notwithstanding any provision of State or local law, in any case 
where deeds or other instruments have been executed, acknowledged, or 
delivered by a representative of the trustee or trustees of a railroad 
in reorganization in the region in accordance with the previous 
sentence, such execution, acknowledgment, and delivery, and the deeds or 
other instruments to which they pertain, shall have the same legal 
effect as they would have had if the trustee or trustees had themselves 
executed, acknowledged and delivered such deeds or other instruments.
    (2) All rail properties conveyed to the Corporation or any 
subsidiary thereof the respective profitable railroads operating in the 
region, States, and responsible persons under this section shall be 
conveyed free and clear of any liens or encumbrances, but subject to 
such leases and agreements as shall have previously burdened such 
properties or bound the owner or operator thereof in pursuance of an 
arrangement with any State, or local or regional transportation 
authority under which financial support from such State, or local or 
regional transportation authority was being provided on January 2, 1974, 
for the continuance of rail passenger service or any lien or encumbrance 
of no greater than 5 years' duration which is necessary for the 
contractual performance by any person of duties related to public health 
or sanitation. Such conveyances shall not be restrained or enjoined by 
any court.
    (3)(A)(i) Notwithstanding any other provision of this chapter, if an 
interest in railroad rolling stock is included in the rail properties 
conveyed pursuant to subsection (b)(1) of this section, and if such 
conveyance is in accordance with the requirements of clause (ii) of this 
subparagraph, the conveyance of such properties shall be deemed an 
assignment. Any such assignment shall relieve the assignor of liability 
for any breach which occurs after the date of such conveyance, except 
that such assignor shall remain liable for any breach, event of default, 
or violation of covenant which occurred (and any charges or obligations 
which accrued) prior to the date of such conveyance, regardless of 
whether the assignee thereof assumes such liabilities, charges or 
obligations. If any such liabilities, charges, or obligations (accrued 
prior to the date of such conveyance) are paid by or on behalf of any 
person or entity other than such assignor, such person or entity shall 
have a claim to direct reimbursement, as a current expense of 
administration, from such assignor, together with interest on the amount 
so paid.
    (ii) A conveyance referred to in clause (i) of this subparagraph may 
be effected only if--
        (I) the Corporation or a subsidiary thereof, the profitable 
    railroad operating in the region, or the State or responsible person 
    to whom such conveyance is made assumes all of the obligations under 
    any applicable conditional sale agreement, equipment trust 
    agreement, or lease with respect to such rolling stock (including 
    any obligations which accrued prior to the date on which such 
    properties are conveyed), and
        (II) such conveyance is made subject to such obligations.

As used in this subparagraph, the term ``railroad rolling stock'' means 
assets which could be carried in Interstate Commerce Commission account 
numbers 52, 53, 54, and 57.
    (B) Subject to the provisions of this paragraph, the provisions of 
this chapter shall not affect the title and interests of any lessor, 
equipment trust trustee, or conditional sale vendor under any 
conditional sale agreement, equipment trust agreement, or lease under 
section 77(j) of the Bankruptcy Act. A profitable railroad operating in 
the region, the Corporation or a subsidiary thereof, or a State or 
responsible person, to whom such a conveyance is made as assignee or as 
lessee, shall assume all liability under such conditional sale 
agreement, equipment trust agreement, or lease. Such an assignment or 
conveyance to, and such an assumption of liability by, such a profitable 
railroad, Corporation, subsidiary, State, or responsible person shall 
not be deemed a breach, an event of default, or a violation of any 
covenant of any such conditional sale agreement, equipment trust 
agreement, or lease so assigned or conveyed, notwithstanding any 
provisions of any such agreement or lease.
    (4) Notwithstanding anything to the contrary contained in this 
chapter, if a railroad in reorganization has leased rail properties from 
a lessor that is neither a railroad nor controlled by or affiliated with 
a railroad, and such lease has been approved by the lessee railroad's 
reorganization court prior to January 2, 1974, conveyance of such lease 
may only be effected if the Corporation, profitable railroad, State, or 
responsible person to whom the conveyance is made assumes all future 
liability under such lease and all of the terms and conditions specified 
in the lease, including the obligation to pay the specified rent to the 
non-railroad lessor.
    (5) Notwithstanding any covenant, undertaking, condition, or 
provision of any sort in any lease, agreement, or contract, the 
conveyance, transfer, assignment, or other disposition of such lease, 
agreement, or contract or of any interest therein to, or the assumption 
by, the Corporation or any subsidiary thereof, or a profitable railroad 
of obligations thereunder, shall not be deemed a breach, an event of 
default, or a violation of any covenant of such lease, agreement, or 
contract.
    (6)(A) Notwithstanding anything to the contrary contained in this 
chapter or any other other \1\ provision of law, the special court shall 
include in its order such further directions as may be necessary to 
assure (i) that the operation and administration of the employee pension 
benefit plans described in section 775(a) \2\ of this title shall be 
continued, without termination or interruption, by the Corporation until 
such time as the Corporation elects to amend or terminate any such plan, 
in whole or in part; and (ii) that appropriate transfers and assignments 
with respect to all rights and obligations relating to such plans shall 
be made to the Corporation for such purposes, without prejudice to 
payment of consideration for whatever rights any railroad in 
reorganization may have in any residual assets under any such employee 
pension benefit plan. No court shall enter any judgment against the 
Corporation with respect to any such rights, except that the special 
court may enter such a judgment in an order issued by it pursuant to 
subsection (c) of this section, after taking into consideration the 
rights and obligations transferred pursuant to this paragraph. All 
liabilities as an employer shall be imposed solely upon the railroad in 
reorganization in the event such plan is terminated, in whole or in 
part, by the Corporation within 1 year after the date of such transfer 
or assignment (except liabilities as an employer under the Employee 
Retirement Income Security Act of 1974 [29 U.S.C. 1001 et seq.] for 
benefits accruing during such period), except that in any case in which 
the Corporation, on or after the date of transfer or assignment as 
provided by this paragraph, terminates in whole or in part any such 
plan, the benefits under which are not guaranteed under title IV of the 
Employee Retirement Income Security Act of 1974 [29 U.S.C. 1301 et 
seq.], the Corporation shall guarantee the payment when due of the 
accrued pension benefits provided for thereunder at the time of 
termination. The Corporation shall be entitled to a loan pursuant to 
section 721(h) of this title in an amount required for the adequate 
funding of accrued pension benefits under all plans transferred or 
assigned to the Corporation in accordance with this paragraph (whether 
or not terminated by the Corporation). For purposes of such section 
721(h) and notwithstanding any other provision of Federal or State law, 
amounts required for such adequate funding shall be deemed to be 
expenses of administration of the respective estates of the railroads in 
reorganization, due and payable as of the date of transfer or assignment 
of the plans to the Corporation.
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    \1\ So in original.
    \2\ See References in Text note below.
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    (B) The Corporation shall, through the purchase of insurance or 
otherwise, maintain in effect any medical insurance coverage or so much 
of any life insurance coverage that does not exceed in death benefits an 
amount equal to twice the employee's annual salary at the time of 
retirement or $60,000, whichever is lower, which coverage was maintained 
by a railroad in reorganization in the region immediately prior to April 
1, 1976, and which provides insurance benefits to employees who retired, 
prior to April 1, 1976, from service with such a railroad. With respect 
to any such employee whose medical or life insurance coverage lapsed 
after April 1, 1976, due to nonpayment of premiums, the Corporation 
shall--
        (i) through the purchase of insurance or otherwise, provide 
    medical insurance benefits or life insurance benefits at the same 
    level as were provided by the employer railroad in reorganization 
    and in effect with respect to such employees immediately prior to 
    April 1, 1976, except that the life insurance benefits so provided 
    shall not exceed in death benefits an amount equal to twice the 
    employee's annual salary at the time of retirement or $60,000, 
    whichever is lower; and
        (ii) assume and pay any claim for such employee (or his personal 
    representative) for any such insurance benefits, if--
            (I) such claim arose during the period beginning April 1, 
        1976, and ending on the date insurance coverage is provided 
        pursuant to clause (i) of this subparagraph;
            (II) such benefits were not paid by an insurer solely 
        because of the lapse of the insurance coverage during such 
        period,

    except that such death benefits shall not be paid for any such 
    employee in excess of an amount equal to twice the employee's annual 
    salary at the time of retirement or $60,000, whichever is lower.

The Corporation shall be entitled to a loan pursuant to section 721(h) 
of this title in an amount required for the payment of insurance 
premiums and benefits described in this subparagraph. For purposes of 
section 721(h)(4)(A)(iii) of this title, amounts required for the 
payment of such premiums and benefits shall be deemed to be valid 
administrative claims against the respective estates of the railroads in 
reorganization, due and payable as of April 1, 1976, or, in the case of 
a railroad in reorganization which is not subject to a bankruptcy 
proceeding, such amounts shall be deemed to be obligations of such 
railroad, due and payable as of such date, and shall be reimbursable in 
accordance with the procedures set forth in paragraphs (4) and (5) of 
such section 721(h) of this title. As used in this subparagraph, the 
term ``railroad in reorganization'' includes any railroad which is 
controlled by a railroad in reorganization but is not itself subject to 
a bankruptcy proceeding, if such railroad conveyed substantially all of 
its rail properties to the Corporation pursuant to paragraph (1) of this 
subsection and conducted operations over such rail properties prior to 
the date of such conveyance.

(c) Findings and distribution

    (1) After the rail properties have been conveyed to the Corporation 
or any subsidiary thereof, profitable railroads operating in the region, 
States, and responsible persons under subsection (b) of this section, 
the special court, giving due consideration to the findings contained in 
the final system plan, shall decide--
        (A) whether the transfers or conveyances--
            (i) of rail properties of each railroad in reorganization, 
        or of each railroad leased, operated, or controlled by a 
        railroad in reorganization, to the Corporation or any subsidiary 
        thereof in exchange for the certificates of value and the other 
        benefits accruing to such railroad as a result of such exchange 
        (taking into consideration compensable unconstitutional erosion, 
        if any, which the special court finds to have occurred in the 
        estate of each such railroad, during the bankruptcy proceeding 
        with respect to such railroad) as provided in the final system 
        plan and this chapter, and
            (ii) of rail properties of each railroad in reorganization, 
        or of each railroad leased, operated, or controlled by a 
        railroad in reorganization, to a profitable railroad operating 
        in the region in exchange for compensation and other benefits 
        accruing to such transferor as a result of such exchange (taking 
        into consideration compensable unconstitutional erosion, if any, 
        which the special court finds to have occurred in the estate of 
        each such railroad, during the bankruptcy proceeding with 
        respect to such railroad) State, or responsible person in 
        accordance with the final system plan,

    are in the public interest and are fair and equitable to the estate 
    of each railroad in reorganization in accordance with the standard 
    of fairness and equity applicable to the approval of a plan of 
    reorganization or a step in such a plan under section 77 of the 
    Bankruptcy Act, or fair and equitable to a railroad that is not 
    itself in reorganization but which is leased, operated, or 
    controlled by a railroad in reorganization;
        (B) whether the transfers or conveyances are more fair and 
    equitable than is required as a constitutional minimum; and
        (C) what portion of the proceeds received by a railroad in 
    reorganization from an entity other than the Corporation or any 
    subsidiary thereof for the sale, lease, or transfer of property 
    subject to an agreement under section 723 or section 725(a)(1) or 
    (2) of this title reflects value attributable to the maintenance or 
    improvement provided pursuant to the agreement.

    (2) If the special court finds that the terms of one or more 
exchanges for certificates of value and other benefits are not fair and 
equitable to an estate of a railroad in reorganization, or to a railroad 
leased, operated, or controlled by a railroad in reorganization (taking 
into consideration compensable unconstitutional erosion, if any, which 
the special court finds to have occurred in the estate of each such 
railroad, during the bankruptcy proceeding with respect to such 
railroad), which has transferred rail properties pursuant to the final 
system plan, it may--
        (A) enter a judgment reallocating the certificates of value in a 
    fair and equitable manner if they have not been fairly allocated 
    among the railroads transferring rail properties to the Corporation 
    or any subsidiary thereof, except that one certificate of value 
    shall be allocated to each such railroad; and
        (B) if the lack of fairness and equity cannot be completely 
    cured by a reallocation of the certificates of value, order the 
    Corporation to provide for the transfer to the railroad of 
    certificates of value issued by the Association as designated in the 
    final system plan in such nature and amount as would make the 
    exchange or exchanges fair and equitable; and
        (C) enter a judgment against the Corporation if the judgment 
    would not endanger the viability or solvency of the Corporation.

    (3) If the special court finds that the terms of one or more 
conveyances of rail properties to a profitable railroad operating in the 
region, State, or responsible person in accordance with the final system 
plan are not fair and equitable, it shall enter a judgment against such 
profitable railroad, State, or responsible person. If the special court 
finds that the terms of one or more conveyances or exchanges for 
certificates of value or other benefits are fairer and more equitable 
than is required as a constitutional minimum, then it shall order the 
return of any excess certificates of value, or compensation to the 
Corporation or a profitable railroad, State, or responsible person so as 
not to exceed the constitutional minimum standard of fairness and 
equity. The special court shall also find the amount of the payments, if 
any, which each profitable railroad has made on behalf of a transferor 
railroad in reorganization in accordance with section 721(h) of this 
title, for which payment the profitable railroad has not been 
reimbursed, as provided in section 721(h) of this title. Notwithstanding 
any other provision of this paragraph or of paragraph (4), the special 
court shall order the return to any such profitable railroad from 
compensation deposited by such profitable railroad pursuant to 
subsection (a)(2) of this section, of any such amount so found together 
with interest at the rate provided in section 721(h) of this title. In 
making any finding under this paragraph, the special court shall take 
into consideration compensable unconstitutional erosion, if any, which 
it finds to have occurred in the estate of a railroad in reorganization 
in the region, or of a railroad leased, operated, or controlled by such 
a railroad, during the bankruptcy proceeding with respect to such 
railroad.
    (4) Upon making the findings referred to in this subsection, the 
special court shall order distribution of the certificates of value and 
compensation deposited with it under subsection (a) of this section to 
the trustee or trustees of each railroad in reorganization in the region 
and to persons leased, operated, or controlled by such railroads who so 
transferred or conveyed rail properties who conveyed right, title, and 
interest in rail properties to the Corporation and the respective 
profitable railroads, States, and responsible persons under such 
subsection.
    (5) Whenever the special court, pursuant to subsection (b)(1) of 
this section, orders the transfer or conveyance of rail properties--
        (A) designated under section 716(c)(1)(C) or (D) of this title, 
    to the Corporation or any subsidiary thereof, the United States 
    shall indemnify the Corporation against any costs or liabilities 
    imposed on the Corporation as the result of any judgment entered 
    against the Corporation, with respect to such properties, under 
    paragraph (2) of this subsection; and
        (B) to the National Railroad Passenger Corporation, a profitable 
    railroad operating in the region, a State, or any other responsible 
    person (including a governmental entity), the United States shall 
    indemnify such Corporation, railroad, State, or person against any 
    costs or liabilities imposed thereon as the result of any judgment 
    entered against such Corporation, railroad, State, or person under 
    paragraph (3) of this subsection;

plus interest on the amount of such judgment at such rate as is 
constitutionally required. The United States may, in its discretion, 
represent the Corporation or the National Railroad Passenger 
Corporation, such profitable railroad, State or responsible person, in 
any proceedings before the special court that could result in such a 
judgment against the Corporation under paragraph (2) of this subsection 
or against the National Railroad Passenger Corporation, such profitable 
railroad, State or responsible person, under paragraph (3) of this 
subsection. The Corporation, the National Railroad Passenger 
Corporation, any profitable railroad, State, or responsible person, 
which is represented by the United States of America shall cooperate 
diligently in whatever manner the United States shall reasonably request 
of it in connection with such proceedings. Neither the Corporation, or 
its subsidiaries, nor the National Railroad Passenger Corporation, any 
profitable railroad, State or responsible person, shall be obligated to 
reimburse the United States for any moneys paid by the United States 
pursuant to this section.
    (6) Whenever the Corporation exercises an option to acquire, or 
acquires, interests in rail marine freight floating equipment pursuant 
to the recommendations of the final system plan, and the Corporation 
thereafter makes such floating equipment available to a profitable 
railroad operating in the region, a State, or a responsible person 
including \3\ a government entity), the United States shall indemnify--
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    \3\ So in original. Probably should be ``(including''.
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        (A) the Corporation against any costs or liabilities imposed on 
    the Corporation as the result of any judgment entered against it, 
    with respect to such equipment, under paragraph (2) of this 
    subsection; and
        (B) such profitable railroad, State, or responsible person 
    against any costs or liabilities imposed thereon as the result of 
    any judgment entered against such profitable railroads, State, or 
    responsible person under paragraph (3) of this subsection,

plus interest on the amount of such judgment at such rate as is 
constitutionally required.

(d) Appeal

    An order or judgment entered by the United States District Court for 
the District of Columbia pursuant to subsection (c) of this section or 
section 746 of this title shall be reviewable in accordance with 
sections 1291, 1292, and 1294 of title 28.

(e) Transfer and other taxes and recording fees

    All transfers or conveyances of rail properties (whether real, 
personal, or mixed) which are made under this chapter (including 
transfers and conveyances which are made in accordance with a 
supplemental transaction pursuant to section 745 of this title or which 
are made at any time to carry out the purposes of section 791(d) of this 
title) shall be exempt from any taxes, imposts, or levies now or 
hereafter imposed, by the United States or by any State or any political 
subdivision of a State, on or in connection with such transfers or 
conveyances or on the recording of deeds, bills of sale, liens, 
encumbrances, or other instruments evidencing, effectuating, or incident 
to any such transfers or conveyances, whether imposed on the transferor 
or on the transferee. Such transferors and transferees shall be entitled 
to record any such deeds, bills of sale, liens, encumbrances, or other 
instruments and, consistent with the designations and applicable 
principles in the final system plan, to record the release or removal of 
any pre-existing liens or encumbrances of record with respect to 
properties so transferred or conveyed, upon payment of any appropriate 
and generally applicable charges to compensate for the cost of the 
service performed.

(Pub. L. 93-236, title III, Sec. 303, Jan. 2, 1974, 87 Stat. 1005; Pub. 
L. 94-5, Sec. 8, Feb. 28, 1975, 89 Stat. 9; Pub. L. 94-210, title VI 
Secs. 601(d), 612(a), (c)-(i), (k), (l), (n)-(q), Feb. 5, 1976, 90 Stat. 
84, 107-111; Pub. L. 94-436, Secs. 3, 5, Sept. 30, 1976, 90 Stat. 1398, 
1399; Pub. L. 94-555, title II, Secs. 202(b), 204, 220(b), Oct. 19, 
1976, 90 Stat. 2616, 2620, 2629; Pub. L. 95-199, Sec. 4, Nov. 23, 1977, 
91 Stat. 1424; Pub. L. 95-597, Sec. 1, Nov. 4, 1978, 92 Stat. 2547; Pub. 
L. 96-73, title II, Sec. 204(a), Sept. 29, 1979, 93 Stat. 556; Pub. L. 
97-35, title XI, Sec. 1167(a), Aug. 13, 1981, 95 Stat. 686; Pub. L. 100-
352, Sec. 6(e), June 27, 1988, 102 Stat. 664; Pub. L. 103-272, 
Sec. 7(b), July 5, 1994, 108 Stat. 1379; Pub. L. 104-317, title VI, 
Sec. 605(b)(2), Oct. 19, 1996, 110 Stat. 3858.)

                       References in Text

    Section 77 of the Bankruptcy Act, referred to in subsecs. (b)(3)(B) 
and (c)(1)(A)(ii), 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 775 of this title, referred to in subsec. (b)(6)(A), was 
repealed by Pub. L. 97-35, title XI, Sec. 1144(a)(1), Aug. 13, 1981, 95 
Stat. 669.
    The Employee Retirement Income Security Act of 1974, referred to in 
subsec. (b)(6)(A), is Pub. L. 93-406, Sept. 2, 1974, 88 Stat. 829, as 
amended. Title IV of the Employee Retirement Income Security Act of 1974 
is classified principally to subchapter III (Sec. 1301 et seq.) of 
chapter 18 of Title 29, Labor. For complete classification of this Act 
to the Code, see Short Title note set out under section 1001 of Title 29 
and Tables.

                          Codification

    The amendments made by section 612(i)(4) of Pub. L. 94-210 could be 
read as substituting ``certificates of value'' for ``obligations'' in 
subsecs. (b)(3)(A), (b)(5), and (b)(6), as added by section 612(a) and 
(l) of Pub. L. 94-210. However, this substitution is not appropriate in 
the context of the new subsecs. (b)(3)(A), (b)(5), and (b)(6).


                               Amendments

    1996--Subsec. (d). Pub. L. 104-317 substituted ``Appeal'' for 
``Review'' in heading and amended text generally. Prior to amendment, 
text read as follows: ``A finding or determination entered by the 
special court pursuant to subsection (c) of this section or section 746 
of this title shall be reviewable only upon petition for a writ of 
certiorari to the Supreme Court of the United States. Such review is 
exclusive and any such petition shall be filed in the Supreme Court not 
more than 20 days after entry of such finding or determination.''
    1994--Subsec. (e). Pub. L. 103-272 struck out ``title VII of the 
Railroad Revitalization and Regulatory Reform Act of 1976 or of'' before 
``section 791(d)''.
    1988--Subsec. (d). Pub. L. 100-352 substituted ``Review'' for 
``Appeal'' in heading and amended text generally. Prior to amendment, 
text read as follows: ``A finding or determination entered by the 
special court pursuant to subsection (c) of this section or section 746 
of this title may be appealed directly to the Supreme Court of the 
United States in the same manner that an injunction order may be 
appealed under section 1253 of title 28: Provided, That such appeal is 
exclusive and shall be filed in the Supreme Court not more than 20 days 
after such finding or determination is entered by the special court. The 
Supreme Court shall dismiss any such appeal within 7 days after the 
entry of such an appeal if it determines that such an appeal would not 
be in the interest of an expeditious conclusion of the proceedings and 
shall grant the highest priority to the determination of any such 
appeals which it determines not to dismiss.''
    1981--Subsec. (c). Pub. L. 97-35 struck out all references to 
securities wherever appearing in text, and reference to share of series 
B preferred stock.
    1979--Subsec. (b)(6)(B). Pub. L. 96-73 inserted provisions which 
limited coverage to amount that does not exceed in death benefits amount 
equal to twice the employee's annual salary at time of retirement or 
$60,000, whichever is lower, provided for maintenance of regional 
coverage, and in cases of lapsed coverage due to nonpayment of premiums 
prescribed the same limitation for claims arising during the lapsed 
period or thereafter.
    1978--Subsec. (b)(6). Pub. L. 95-597 redesignated existing 
provisions as subpar. (A), redesignated clauses (A) and (B) as (i) and 
(ii), respectively, and added subpar. (B).
    1977--Subsec. (d). Pub. L. 95-199 substituted ``entered by the 
special court pursuant to subsection (c) of this section or section 746 
of this title'' for ``entered pursuant to subsection (c) of this 
section''.
    1976--Subsec. (a)(1). Pub. L. 94-210, Sec. 612(c)(1), (i), inserted 
``or any subsidiary thereof'' before ``, shall deposit'', and 
substituted ``certificates of value issued by'' for ``obligations of''.
    Subsec. (a)(2). Pub. L. 94-210, Sec. 612(d)(1), inserted reference 
to each State or responsible person (including a governmental entity).
    Subsec. (b)(1). Pub. L. 94-210, Sec. 612(c)(2), (d)(2), (i), (o), 
(p), inserted ``or any subsidiary thereof'' after ``to the 
Corporation'', ``States, and responsible persons'' before ``order the 
trustee'', and provisions relating to orders of the trustee or trustees 
to execute and deliver deeds or other instruments conveying rail 
properties, and substituted ``person leased'' for ``railroad leased'', 
``, the respective profitable railroads operating in the region, States, 
and responsible persons'' for ``and the respective profitable railroads 
operating in the region'', and ``certificates of value issued by'' for 
``obligations of''.
    Subsec. (b)(2). Pub. L. 94-210, Sec. 612(c)(2), (d)(3), inserted 
``or any subsidiary thereof'' after ``Corporation'' and reference to 
States and responsible persons.
    Subsec. (b)(3). Pub. L. 94-210, Sec. 612(a), redesignated existing 
provisions as subpar. (A)(ii), made changes in phraseology, inserted 
definition of ``railroad rolling stock'' and struck out provisions 
relating to affect of chapter on title and interests of any lessor, 
etc., and added subpar. (A)(i) and (B).
    Subsec. (b)(4). Pub. L. 94-210, Sec. 612(d)(4), (k), inserted ``all 
future liability under such lease and'' after ``is made assumes'', and 
substituted ``, profitable railroad, State, or responsible person'' for 
``or the profitable railroad''.
    Subsec. (b)(5), (6). Pub. L. 94-210, Sec. 612(l), added pars. (5) 
and (6).
    Subsec. (b)(6). Pub. L. 94-555, Sec. 204, inserted provisions 
entitling the Corporation to a loan to fund accrued, non-guaranteed 
pension benefits under all plans transferred or assigned to the 
Corporation, whether terminated or not, and such loan is to be charged 
to the estate of railroad in reorganization as an administrative 
expense.
    Subsec. (c)(1). Pub. L. 94-210, Sec. 612(c)(3), (d)(5), (6), (i), 
(q)(1), (2), in introductory text inserted ``or any subsidiary thereof'' 
after ``Corporation'' and inserted reference to States and responsible 
persons, in subpar. (A)(i) inserted ``or any subsidiary thereof'' after 
``Corporation'' and ``, certificates of value'' after ``securities'', 
and inserted provision relating to consideration of compensable 
unconstitutional erosion, in subpar. (A)(ii) inserted reference to State 
or responsible person, and provision relating to compensation and other 
benefits accruing to such transferor as a result of the exchange, and in 
subpar. (C) inserted ``or any subsidiary thereof'' after 
``Corporation''.
    Subsec. (c)(2). Pub. L. 94-210, Sec. 612(c)(4), (e), (i), (q)(3), in 
introductory text inserted reference to certificates of value and 
provision relating to consideration of compensable unconstitutional 
erosion, and substituted ``may'' for ``shall'', in subpar. (A) inserted 
reference to any subsidiary of a Corporation, exception relating to 
allocation to each such railroad of preferred stock, etc., ``, 
certificates of value'' after ``securities'' and ``and certificates of 
value'' after ``of the Corporation'', in subpar. (B) inserted ``and 
certificates of value'' after ``Corporation's securities'' and ``, 
certificates of value'' after ``other securities'', and substituted 
``certificates of value issued by the Association'' for ``obligations of 
the Association'', and in subpar. (C) generally revised criteria for 
entering a judgment against the Corporation.
    Subsec. (c)(2)(A). Pub. L. 94-555, Sec. 220(b)(1), (2), substituted 
``securities and certificates of value'' for ``securities and 
certificates of value of the Corporation and certificates of value'' 
after ``reallocating the'' and ``they have'' for ``it has'' after 
``equitable manner''.
    Subsec. (c)(2)(B). Pub. L. 94-555, Sec. 220(b)(3), (4), substituted 
``securities and certificates of value'' for ``Corporation's securities, 
certificates of value'' after ``reallocation of'', and substituted 
``other securities'' for ``other securities and certificates of value'' 
after ``the railroad of''.
    Subsec. (c)(3). Pub. L. 94-555, Sec. 220(b)(5), substituted 
``subsection (a)(2) of this section'' for ``section 303(a)(2)'', in the 
original, necessitating no change in text.
    Pub. L. 94-210, Sec. 612(d)(7), (i), (n), (q)(4), inserted 
references to States or responsible persons wherever appearing, 
provisions relating to unreimbursed payments made by the profitable 
railroad on behalf of the transferor railroad in reorganization, 
provisions relating to consideration by the special court of compensable 
unconstitutional erosion, and ``certificates of value'' after 
``securities'', and substituted ``certificates of value'' for 
``obligations''.
    Subsec. (c)(4). Pub. L. 94-210, Sec. 612(d)(8), (h), (i), inserted 
``, States, and responsible persons'' after ``profitable railroads'' and 
``and to persons leased, operated, or controlled by such railroads who 
so transferred or conveyed rail properties'' after ``region'', and 
substituted ``(a)'' for ``(b)'' and ``certificates of value'' for 
``obligations''.
    Subsec. (c)(5). Pub. L. 94-436, Sec. 3, restructured first sentence 
limiting indemnification of United States to judgments against 
Corporation or any subsidiary entered pursuant to par. (2) and to 
judgments against the National Railroad Passenger Corporation, 
profitable railroads, a State, or any responsible person entered 
pursuant to par. (3).
    Pub. L. 94-210, Sec. 612(f), added par. (5).
    Subsec. (c)(6). Pub. L. 94-555, Sec. 202(b), added par. (6).
    Subsec. (d). Pub. L. 94-210, Sec. 612(g), substituted ``20'' for 
``5''.
    Subsec. (e). Pub. L. 94-436, Sec. 5, inserted, after ``section 745 
of this title'' in second parenthetical expression, ``or which are made 
at any time to carry out the purposes of title VII of the Railroad 
Revitalization and Regulatory Reform Act of 1976 or section 791 of this 
title''.
    Pub. L. 94-210, Sec. 601(d), added subsec. (e).
    1975--Subsec. (c)(1)(C). Pub. L. 94-5 added subpar. (C).


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-317 effective 90 days after Oct. 19, 1996, 
and except as otherwise provided, applicable to proceedings that arise 
or continue after such effective date, see section 605(e) of Pub. L. 
104-317, set out as a note under section 719 of this title.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-352 effective ninety days after June 27, 
1988, except that such amendment not to apply to cases pending in 
Supreme Court on such effective date or affect right to review or manner 
of reviewing judgment or decree of court which was entered before such 
effective date, see section 7 of Pub. L. 100-352, set out as a note 
under section 1254 of Title 28, Judiciary and Judicial Procedure.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Aug. 13, 1981, see section 1169 
of Pub. L. 97-35, set out as an Effective Date note under section 1101 
of this title.


                    Effective Date of 1979 Amendment

    Section 501(b) of Pub. L. 96-73 provided that: ``The amendments made 
by section 204 of this Act [enacting subsec. (b)(6)(B) of this section 
and section 721(h)(1)(A)(viii), (6) of this title] shall be effective as 
of the date of enactment [Nov. 4, 1978] of Pub. L. 95-597.''


                    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 Special Court, Regional Rail Reorganization Act of 1973, 
                        and Transfer of Functions

    Special court abolished and all jurisdiction and functions 
transferred to United States District Court for District of Columbia, 
see section 719(b)(2) of this title.

  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.

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

    See section 1341 of this title.


                     Cases Pending in Special Court

    For applicability of amendment by Pub. L. 104-317 to cases pending 
in special court established under section 719(b) of this title, see 
section 605(d) of Pub. L. 104-317, set out as a note under section 719 
of this title.


                       Administrative Claim Status

    Section 2 of Pub. L. 95-597 provided that: ``The conferring of 
administrative claim status on amounts paid for the insurance premiums 
and benefits described in the amendment made by the first section of 
this Act [amending this section] shall be effective solely for purposes 
of meeting the conditions set forth in section 211(h)(4)(A)(iii) of the 
Regional Rail Reorganization Act of 1973 [section 721(h)(4)(A)(iii) of 
this title] with respect to which obligations of the estate of a 
railroad in reorganization may be paid pursuant to such section 211(h) 
[section 721(h) of this title], and shall not be construed--
        ``(1) as affecting the jurisdiction of the district court having 
    jurisdiction over such a railroad in reorganization to determine 
    whether such insurance premiums and benefits constitute enforceable 
    contractual obligations of the estate of such a railroad for 
    purposes of reimbursement under such section 211(h) [section 721(h) 
    of this title]; or
        ``(2) as establishing or reordering any priority which a claim 
    against the estate of such a railroad for reimbursement for the 
    amounts paid for such insurance premiums and benefits may or may not 
    have under the provisions of the Bankruptcy Act [section 1 et seq. 
    of former Title 11, Bankruptcy] or any other law.''


                  Corporation as Successor in Interest

    Section 3 of Pub. L. 95-597 provided that: ``Notwithstanding any 
other provision of law, any corporation which, pursuant to a plan of 
reorganization under section 77 of the Bankruptcy Act [section 205 of 
former Title 11, Bankruptcy], is the successor in interest to a railroad 
in reorganization shall have standing to assert, in any judicial or 
administrative proceeding, any claim or defense available to such 
railroad in reorganization with respect to whether the insurance 
benefits and premiums described in the amendment made by the first 
section of this Act [amending this section] constitute enforceable 
contractual obligations of the estate of such railroad in 
reorganization. For purposes of this section, the term `railroad in 
reorganization' has the meaning given such term in paragraph (14) of 
section 102 of the Regional Rail Reorganization Act of 1973 [section 
702(14) 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, 716, 719, 721, 724, 
725, 726, 741, 744, 745, 746, 791, 797h of this title; title 49 section 
24907.
