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 80rH CONG., 2D SESS. -CH. 180-APR. 9,1948 inability to meet debts as they mature, and insolvency. To assist in accomplishing these ends and because certain classes of the securities of such carriers are in the usual case held by a very large number of holders, and, further, to enable modification and reformation of pro- visions of the aforesaid classes of securities and of provisions of the instruments pursuant to which they are issued or by which they are secured in cases where such modification and reformation shall have become necessary or desirable in the public interest in order to avoid obstruction to or interference with the economical, efficient, and orderly conduct by such carriers of their affairs, it is deemed necessary to provide means, in the manner and with the safeguards herein pro- vided, for the alteration and modification, without the assent of every holder thereof, of the provisions of such classes of securities and of the instruments pursuant to which they are outstanding or by which they are secured. SEC. 2. Part I of the Interstate Commerce Act, as amended, is amended by adding after section 20a the following new section: 41 Stat. 494. 49U. S.C. §20. "SEC. 20b. (1) It shall be lawful (any express provision contained Alteration of securi- in any mortgage, indenture, deed of trust, corporate charter, stock ties mortgages,:etc. certificate, or other instrument or any provision of State law to the contrary notwithstanding), with the approval and authorization of the Commission, as provided in paragraph (2) hereof, for a carrier as defined in section 20a (1) of this part to alter or modify (a) any provision of any class or classes of its securities as defined in section 20a (2) of this part being hereinafter in this section sometimes called 'securities'; or (b) any provision of any mortgage, indenture, deed of trust, corporate charter, or other instrument pursuant to which any class of its securities shall have been issued or by which any class of its obligations is secured (hereinafter referred to as instruments): Provided, That the provisions of this section shall not apply to any Equipment-trust equipment-trust certificates in respect of which a carrier is obligated, certificates or to any evidences of indebtedness of a carrier the payment of which is secured in any manner solely by equipment, or to any instrument, whether an agreement, lease, conditional-sale agreement, or otherwise, pursuant to which such equipment-trust certificates or such evidences of indebtedness shall have been issued or by which they are secured. "(2) Whenever an alteration or modification is proposed under Filing of applica. paragraph (1) hereof, the carrier seeking authority therefor shall, pursuant to such rules and regulations as the Commission shall pre- scribe, present an application to the Commission. Upon presentation Assurances of s- of any such application, the Commission may, in its discretion, but sent. need not, as a condition precedent to further consideration, require the applicant to secure assurances of assent to such alteration or modifica- tion by holders of such percentage of the aggregate principal amount or number of shares outstanding of the securities affected by such alteration or modification as the Commission shall in its discretion determine. If the Commission shall not require the applicant to Publichearing. secure any such assurances, or when such assurances, as the Com- mission may require shall have been secured, the Commission shall set such application for public hearing and the carrier shall give reason- able notice of such hearing in such manner, by mail, advertisement, or otherwise, as the Commission may find practicable and may direct, to holders of such of its classes of securities and to such other persons in interest as the Commission shall determine to be appropriate and shall direct. If the Commission, after hearing, in addition to making (in any case where such alteration or modification involves an issuance of securities) the findings required by paragraph (2) of section 20a, not 41 stat. 494 . inconsistent with paragraph (1) of this section shall find that, subject 4U.C. to such terms and conditions and with such amendments as it shall 62 STAT.] 163

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