
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: 45USC915]

 
                           TITLE 45--RAILROADS
 
              CHAPTER 18--MILWAUKEE RAILROAD RESTRUCTURING
 
Sec. 915. Court approved abandonment and sales in pending cases


(a) Abandonment of lines of railroad under Bankruptcy Act

    Notwithstanding any other provision of law, in any case pending 
under section 77 of the Bankruptcy Act on November 4, 1979, the court 
may authorize the abandonment of lines of railroad pursuant to section 
1170 of title 11. Pending the expiration of the time for appeal of an 
abandonment order or the determination of any such appeal, the court may 
authorize the termination of service on a line to be abandoned, and the 
order authorizing such termination may not be stayed. In authorizing any 
abandonment pursuant to this section, the court shall require the 
carrier to provide a fair arrangement at least as protective of the 
interests of employees as that required under section 11347 \1\ of title 
49.
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    \1\ See References in Text note below.
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(b) Sale or transfer of lines of railroad under Bankruptcy Act

    (1) Notwithstanding any other provision of law, in any case pending 
under section 77 of the Bankruptcy Act on November 4, 1979, the court 
may authorize the sale or transfer of a line of railroad to be used in 
continued rail operations, subject to the approval of the Commission 
under paragraph (2) of this subsection, if the application with respect 
to such sale or transfer is filed with the Commission on or after 
November 1, 1979. In authorizing any such sale or transfer, the court 
shall provide a fair arrangement at least as protective of the interests 
of employees as that required under section 11347 \1\ of title 49.
    (2) The court described in paragraph (1) may not authorize a sale or 
transfer pursuant to such paragraph unless an appropriate application 
with respect to such sale or transfer is initiated with the Commission 
and, within such time as the court may fix, not exceeding 180 days, the 
Commission, with or without a hearing, as the Commission may determine, 
and with or without modification or condition, approves such 
application, or does not act on such application. Any action or order of 
the Commission approving, modifying, conditioning, or disapproving such 
application is subject to review by the court only under sections 
706(2)(A), 706(2)(B), 706(2)(C), and 706(2)(D) of title 5.
    (3)(A) If a person has made or makes an offer to acquire from a 
carrier subject to liquidation a rail line or lines over which no 
service is provided by that carrier, and that offer has been or is 
rejected by the trustee in bankruptcy of such carrier, such person may 
submit an application to the Commission seeking approval of such 
person's acquisition of such line or lines. A copy of any such 
application shall be filed simultaneously with the court.
    (B) The Commission shall, within 15 days after the filing of an 
application under subparagraph (A) of this paragraph, determine whether 
the applicant--
        (i) is a financially responsible person; and
        (ii) has made a bona fide offer to acquire the line or lines 
    under reasonable terms.

    (C)(i) If the Commission's determination under subparagraph (B) of 
this paragraph is affirmative with respect to the matters referred to in 
clauses (i) and (ii) of such subparagraph, the applicant and the trustee 
in bankruptcy (hereafter in this paragraph referred to collectively as 
the ``parties'') shall enter into negotiations with respect to terms for 
the acquisition of the line or lines applied for. If the parties at any 
time agree on such terms, a request for approval of the acquisition 
shall be filed with the Commission and the court. If the parties are 
unable to agree to such terms within 30 days after the date of the 
Commission's determination under subparagraph (B) of this paragraph, 
either party may, within 60 days after the expiration of such 30-day 
period, request the Commission to prescribe terms for such acquisition, 
including compensation for the line or lines to be acquired. The 
Commission shall prescribe such terms within 60 days after any such 
request is made. The terms prescribed by the Commission shall be binding 
upon both parties, subject to court review as provided in subparagraph 
(D) of this paragraph, except that the applicant may withdraw its offer 
within 10 days after the Commission prescribes such terms.
    (ii) If more than one applicant has requested under this 
subparagraph that the Commission prescribe the terms of acquisition for 
the same or overlapping lines or portions of such lines, the Commission 
shall prescribe terms for such acquisition which it determines best 
serve the public interest.
    (D)(i) Within 15 days after the Commission prescribes terms under 
subparagraph (C) of this paragraph, the Commission shall transmit such 
terms to the court, unless the offer is withdrawn under such 
subparagraph. Notwithstanding any other provision of law, the court 
shall, within 60 days after such transmittal, approve the acquisition 
under terms prescribed by the Commission if the compensation for the 
line or lines is not less than that required as a constitutional 
minimum.
    (ii) Except as provided in this subparagraph, no action shall be 
taken by the court which would prejudice the acquisition which is the 
subject of an application under this paragraph.
    (E) The Commission shall require that any person acquiring a line or 
lines under this paragraph use, to the maximum extent practicable, 
employees or former employees of the carrier subject to liquidation in 
the operation of service on such line or lines.
    (F) No person acquiring a line under this paragraph may transfer or 
discontinue service on such line prior to the expiration of 4 years 
after such acquisition.
    (G) The Commission shall, within 45 days after January 14, 1983, 
prescribe such regulations and procedures as are necessary to carry out 
the provisions of this paragraph.
    (H) As used in this paragraph, the term--
        (i) ``carrier subject to liquidation'' means a carrier which, on 
    January 14, 1983, was the subject of a proceeding pending under 
    section 77 of the Bankruptcy Act or under subchapter IV of chapter 
    11 of title 11 and which has been ordered by the court to liquidate 
    its properties;
        (ii) ``the court'' means the court having bankruptcy 
    jurisdiction over the carrier subject to liquidation; and
        (iii) ``financially responsible person'' means a person capable 
    of compensating the carrier subject to liquidation for the 
    acquisition of the line or lines proposed to be acquired and able to 
    cover expenses associated with providing service over such line or 
    lines for a period of not less than 4 years.

    (4) Pending review of an application by the Commission pursuant to 
paragraph (2) of this subsection, the court described in paragraph (1) 
may, on a preliminary basis, authorize the sale or transfer proposed in 
such application. The court may permit the purchasing carrier to operate 
interim service over the lines to be purchased, and in operating such 
service it shall use employees of the carrier subject to the bankruptcy 
proceeding to the extent such purchasing carrier deems necessary for the 
operation of such service.

(c) Judicial review

    Any action or order of the Commission approving, modifying, 
conditioning, or disapproving an application for the sale or transfer of 
rail property that is filed with the Commission before November 1, 1979, 
in connection with a case pending under section 77 of the Bankruptcy Act 
on November 4, 1979--
        (1) is subject to review by the court only under sections 
    706(2)(A), 706(2)(B), 706(2)(C), and 706(2)(D) of title 5; and
        (2) may not be stayed by the Commission.

(d) Authority of bankruptcy court

    The authority of the bankruptcy court to authorize abandonments, 
sales, and transfers of lines of the Milwaukee Railroad shall be 
governed by the provisions of section 904 of this title, rather than the 
provisions of this section.

(e) Effect on priorities and timing of employee protection payments

    Nothing in this section shall be deemed to affect the priorities or 
timing of payment of employee protection which might have existed in the 
absence of this chapter.

(Pub. L. 96-101, Sec. 17, Nov. 4, 1979, 93 Stat. 744; Pub. L. 97-468, 
title II, Sec. 213, Jan. 14, 1983, 96 Stat. 2544.)

                       References in Text

    Section 77 of the Bankruptcy Act, referred to in subsecs. (a), 
(b)(1), (3)(H)(i), and (c), 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 11347 of title 49, referred to in subsecs. (a) and (b)(1), 
was omitted 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. Provisions similar to those in section 11347 are 
contained in section 11326(a) of Title 49.


                               Amendments

    1983--Subsec. (b)(3), (4). Pub. L. 97-468 added par. (3) and 
redesignated former par. (3) as (4).

  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.

                  Section Referred to in Other Sections

    This section is referred to in sections 1009, 1018 of this title.
