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United States Code (Last Updated: May 24, 2014) |
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Title 45. RAILROADS |
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Chapter 16. REGIONAL RAIL REORGANIZATION |
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SubChapter II. UNITED STATES RAILWAY ASSOCIATION |
§ 726. Debentures and series A preferred stock
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(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) of title 49 and any corresponding provision of any successor statute. (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.
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, § 7203(a)(2),
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, § 101,
The Regional Rail Reorganization Act Amendments of 1978, referred to in subsec. (f)(1), probably means Pub. L. 95–565,
Public Law 94–210, referred to in subsec. (f)(2)(A)(i), is Pub. L. 94–210,
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 (§ 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, § 102(a),
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,
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, § 703(f)(1), substituted “$2,629,000,000” for “$2,300,000,000”.
Subsec. (b)(3). Pub. L. 96–448, § 405(b)(2), added par. (3).
Subsec. (b)(4). Pub. L. 96–448, § 703(e), added par. (4).
Subsec. (f)(5). Pub. L. 96–254, § 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, § 118(c), added pars. (8) to (10).
Subsec. (g). Pub. L. 96–448, § 703(f)(2), substituted “$3,629,000,000” for “$3,300,000,000”.
1978—Subsec. (a). Pub. L. 95–565, § 2(a), substituted “$2,300,000,000” for “$1,100,000,000”.
Subsec. (b)(2). Pub. L. 95–565, § 2(b), substituted “$2,300,000,000” for “$1,100,000,000”.
Subsecs. (f), (g). Pub. L. 95–565, §§ 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 Amendment
Amendment by Pub. L. 96–448 effective
Miscellaneous
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.