Page:United States Statutes at Large Volume 84 Part 2.djvu/645

 84 STAT. ]

PUBLIC LAW 91-663-JAN. 8, 1971

1975

Public Law 91-663 AN ACT

January 8, 1971

To authorize the Secretary of Transportation to provide financial assistance to certain railroads in order to preserve essential rail services, and for other purposes.

[H. R. 19953]

Be it enacted by the Senate and House of Representatives of the Emergency United States of America in Congress assembled, That this Act may g e r v i c e s Act be cited as the "Emergency Rail Services Act of 1970". 1970.

Rail of

DEFINITIONS

SEC. 2. For the purposes of this Act— (1) "Secretary" means the Secretary of Transportation. (2) "Commission" means the Interstate Commerce Commission. (3) "Railroad" means any common carrier by railroad subject to part I of the Interstate Commerce Act (49 U.S.C. 1-27). (4) "Certificate" means certificates issued by trustees of a railroad pursuant to subsection 77(c)(3) of the Bankruptcy Act, as amended (11 U.S.C. 205 (C)(3)).

24 Stat. 379. 65 Stat. 606.

FINANCIAL

ASSISTANCE

SEC. 3. (a) The trustees of any railroad undergoing reorganization under section 77 of the Bankruptcy Act, as amended (11 U.S.C. 205), ^^ Stat. 911. upon approval of the court, may apply to the Secretary for the guarantee of certificates. The Secretary, after consultation with the Commission, is authorized to guarantee such certificates upon findings in writing that— (1) cessation of essential transportation services by the railroad would endanger the public welfare; (2) cessation of such services is imminent; (3) there is no other practicable means of obtaining funds to meet payroll and other expenses necessary to provide such services than the issuance of such certificates; (4) such certificates cannot be sold without a guarantee; (5) the railroad can reasonably be expected to become selfsustaining; and (6) the probable value of the assets of the railroad in the event of liquidation provides reasonable protection to the United States. The Secretary shall publish notice of his intention to make such Publication in finding in the Federal Register not less than fifteen days prior to ^'^'^^'"^^ Registe.such finding, give interested persons, including agencies of the Federal Government, an opportunity to submit written data, views, or arguments (with or without opportunity for oral presentation), and give consideration to the relevant matter presented. The Secretary for good cause shown and upon a finding that extraordinary circumstances warrant doing so may waive the requirements of the preceding sentence. (b) As a condition to a guarantee, the Secretary, after consultation conditions. with the Commission, shall require that: (1) the proceeds of the sale of certificates guaranteed under this Act will be used solely for meeting payroll and other expenses which, if not met, would preclude continued provision of essential transportation services by the railroad; (2) other revenues of the railroad will be used, to the fullest extent possible, for such expenses;

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