
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: 49USC22106]

 
                        TITLE 49--TRANSPORTATION
 
                        SUBTITLE V--RAIL PROGRAMS
 
                           PART B--ASSISTANCE
 
               CHAPTER 221--LOCAL RAIL FREIGHT ASSISTANCE
 
Sec. 22106. Limitations on financial assistance

    (a) Grants and Loans.--A State shall use financial assistance for 
projects under this chapter to make a grant or lend money to the owner 
of rail property, or a rail carrier providing rail transportation, 
related to a project being assisted. The State shall decide on the 
financial terms of the grant or loan, except that the time for making 
grant advances shall comply with regulations of the Secretary of the 
Treasury.
    (b) Holding and Use of Government's Share.--The State shall place 
the United States Government's share of money that is repaid in an 
interest-bearing account. However, the Secretary of Transportation may 
allow a borrower to place that money, for the benefit of the State, in a 
bank designated by the Secretary of the Treasury under section 10 of the 
Act of June 11, 1942 (12 U.S.C. 265). The State shall use the money and 
accumulated interest to make other grants and loans under this chapter 
in the same manner and under the same conditions as if they were 
originally granted to the State by the Secretary of Transportation.
    (c) Payment of Unused Money and Accumulated Interest.--The State may 
pay the Secretary of Transportation the Government's share of unused 
money and accumulated interest at any time. However, the State must pay 
the unused money and accumulated interest to the Secretary when the 
State ends its participation under this chapter.
    (d) Encouraging Participation.--To the maximum extent possible, the 
State shall encourage the participation of shippers, rail carriers, and 
local communities in paying the State share of assistance costs.
    (e) Retention of Contingent Interest.--Each State shall retain a 
contingent interest (redeemable preference shares) for the Government's 
share of amounts in a rail line receiving assistance under this chapter. 
The State may collect its share of the amounts used for the rail line 
if--
        (1) an application for abandonment of the rail line is filed 
    under chapter 109 of this title; or
        (2) the rail line is sold or disposed of after it has received 
    assistance under this chapter.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 897; Pub. L. 104-
287, Sec. 5(55), Oct. 11, 1996, 110 Stat. 3393.)

                                          Historical and Revision Notes
                                                 Pub. L. 103-272
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
22106(a)..............................  49 App.:1654(d)(1), (2).         Oct. 1
5, 1966, Pub. L. 89-670, 80 Stat.
                                                                          931, 
Sec.  5(d), (i); added Feb. 5,
                                                                          1976,
 Pub. L. 94-210, Sec.  803, 90
                                                                          Stat.
 130; Nov. 8, 1978, Pub. L. 95-
                                                                          607, 
Secs.  102-106(a), 107- 109(a),
                                                                          92 St
at. 3059, 3062; Oct. 12, 1979,
                                                                          Pub. 
L. 96-86, Sec.  115(b), 93 Stat.
                                                                          662; 
Aug. 13, 1981, Pub. L. 97-35,
                                                                          Secs.
  1191, 1192, 95 Stat. 699; Jan.
                                                                          14, 1
983, Pub. L. 97-468, Sec.  501,
                                                                          96 St
at. 2551; Apr. 7, 1986, Pub. L.
                                                                          99-27
2, Sec.  4018, 100 Stat. 111;
                                                                          resta
ted Dec. 11, 1989, Pub. L. 101-
                                                                          213, 
Sec.  2(a), (c), 103 Stat. 1843,
                                                                          1845,
 1847.
22106(b)..............................  49 App.:1654(d)(3) (1st, 2d
                                         sentences).
22106(c)..............................  49 App.:1654(d)(3) (3d, last
                                         sentences).
22106(d)..............................  49 App.:1654(d)(4).
22106(e)..............................  49 App.:1654(i).
-------------------------------------------------------------------------------
---------------------------------

    In subsection (a), the words ``financial assistance for projects 
under this chapter'' are substituted for ``assistance provided under 
subsection (b) of this section'' for clarity. The words ``rail carrier 
providing rail transportation'' are substituted for ``operator of rail 
service'' for consistency in the revised title. The word ``conditions'' 
is omitted as being included in ``terms''. The words ``Secretary of the 
Treasury'' are substituted for ``Department of the Treasury'' because of 
31:301(b).
    In subsection (b), the words ``in the same manner and under the same 
conditions as if they were originally granted to the State by the 
Secretary'' are omitted as unnecessary.
    In subsection (e)(2), the words ``assistance under this chapter'' 
are substituted for ``Federal assistance'' for clarity and consistency 
in this chapter.


                             Pub. L. 104-287

    This amends 49:22106(b) to clarify the restatement of 49 
App.:1654(d)(3) by section 1 of the Act of July 5, 1994 (Public Law 103-
272, 108 Stat. 897).


                               Amendments

    1996--Subsec. (b). Pub. L. 104-287 inserted ``in the same manner and 
under the same conditions as if they were originally granted to the 
State by the Secretary of Transportation'' after ``under this chapter''.


                    Effective Date of 1996 Amendment

    Amendment by Pub. L. 104-287 effective July 5, 1994, see section 
8(1) of Pub. L. 104-287, set out as a note under section 5303 of this 
title.
