
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: 45USC906]

 
                           TITLE 45--RAILROADS
 
              CHAPTER 18--MILWAUKEE RAILROAD RESTRUCTURING
 
Sec. 906. Guarantee of trustee certificates


(a) to (c) Omitted

(d) Authorization

    The Secretary of Transportation shall, under the authority of the 
Emergency Rail Services Act of 1970 [45 U.S.C. 661 et seq.], immediately 
guarantee trustee certificates of the Milwaukee Railroad, on the basis 
of an estimate of the amount required to be provided under subsection 
(e) of this section, for purposes of allowing the Milwaukee Railroad, 
commencing November 1, 1979, to maintain its entire railroad system in 
accordance with section 920 of this title, and as required to finance 
operations which the Milwaukee Railroad continues for the 60-day period 
beginning on the date of the occurrence of an event described in section 
920(b) of this title or on April 1, 1980, whichever first occurs. Such 
guarantee shall be made without regard to the findings set forth in 
section 3(a) of the Emergency Rail Services Act of 1970 [45 U.S.C. 
662(a)], and the provisions of section 3(b)(3) [45 U.S.C. 662(b)(3)] and 
the last two sentences of section 3(d) of such Act [45 U.S.C. 662(d)] 
shall not apply to such guarantee.

(e) Amount of guarantee

    The Secretary shall guarantee trustee certificates of the Milwaukee 
Railroad pursuant to this section in an amount equal to the difference 
between (1) the total expenses incurred by such railroad attributable to 
the maintenance and the continuation of service in accordance with 
subsection (d) of this section, and (2) the revenues of such railroad.

(f) Subordination of claims

    Notwithstanding the provisions of section 3(c) of the Emergency Rail 
Services Act of 1970 [45 U.S.C. 662(c)], certificates guaranteed under 
this chapter shall be subordinated to the claims of any creditors of the 
Milwaukee Railroad as of November 4, 1979.

(g) Availability of funds

    The Commission shall immediately make available to the Secretary of 
Transportation the sum of $10,000,000, out of funds available for 
directed service under title 49. The Secretary of Transportation shall 
immediately make such funds available to the trustee of the Milwaukee 
Railroad for purposes of financing the operations of the Milwaukee 
Railroad, beginning November 1, 1979, in accordance with section 920 of 
this title.

(h) Cancellation of United States obligations

    (1) All obligations to the United States or any agency or 
instrumentality of the United States incurred pursuant to this section 
by the Milwaukee Railroad or the trustee of the property of the 
Milwaukee Railroad shall be waived and canceled when--
        (A) the Milwaukee Railroad is reorganized as an operating rail 
    carrier; or
        (B) substantially all of the Milwaukee Railroad is purchased.

    (2) For purposes of this subsection, substantially all of the 
Milwaukee Railroad shall be considered as having been purchased when (A) 
more than 50 percent of the rail system operated by the Milwaukee 
Railroad on October 14, 1980, has been purchased, and (B) more than 50 
percent of the employees employed by the Milwaukee Railroad on October 
14, 1980, have obtained employment with other rail carriers.

(Pub. L. 96-101, Sec. 7(less (a)-(c)), Nov. 4, 1979, 93 Stat. 740; Pub. 
L. 96-448, title VII, Sec. 701(c)(1), Oct. 14, 1980, 94 Stat. 1961.)

                       References in Text

    The Emergency Rail Services Act of 1970, referred to in subsec. (d), 
is Pub. L. 91-663, Jan. 8, 1971, 84 Stat. 1975, as amended, which is 
classified generally to chapter 15 (Sec. 661 et seq.) of this title. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 661 of this title and Tables.
    Directed service under title 49, referred to in subsec. (g), 
probably refers to directed service under section 11125 of Title 49, 
Transportation, prior to the general amendment of subtitle IV of Title 
49, by Pub. L. 104-88, Sec. 102(a).

                          Codification

    Subsecs. (a) to (c) of this section amended section 662 of this 
title.


                               Amendments

    1980--Subsec. (h). Pub. L. 96-448 added subsec. (h).


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-448 effective Oct. 14, 1980, see section 
710(d) of Pub. L. 96-448, set out as a note under section 1170 of Title 
11, Bankruptcy.

  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.
