Page:United States Statutes at Large Volume 86.djvu/1348

 1306

PUBLIC LAW 92-591-OCT. 27, 1972

[86 STAT.

(4) The Secretary shall provide as a condition of the loan that, in consideration of the relief provided by this Act, the railroad shall offer to convey to the State, for just compensation, or in the event any such railroad is subject to a proceeding under the bankruptcy laws, the court having jurisdiction in such bankruptcy proceedings shall direct the trustee or trustees or the debtor to offer to convey to the State, for just compensation, all of its right, title, and interest free and clear of all encumbrances, in any right-of-way, track, and other related real and personal property on any branch line within such State which has been damaged or destroyed as a result of the natural disasters of June 1972; which have not been scheduled for restoration or replacement under the loan program as approved by the Secretary; and which such State, or subdivision thereof, proposes to restore or replace. STATE AND LOCAL AUTHORITY

Limitation.

Appropriation.

Ante, p. 230.

SEC. 5. (a) The Secretary is authorized to make loans pursuant to this section to assist regional. State, and local public bodies and agencies thereof in financing the restoration and replacement of railroad facilities and equipment damaged or destroyed as a result of the natural disasters of June 1972. Eligible facilities and equipment may include railroad right-of-way, track, rolling stock, and other real and personal property needed for an efficient and coordinated railroad transportation system and conveyed in accordance with the provisions of section 4(c)(3). (b) No such loan shall be provided unless the Secretary determines that the applicant has or will have— (1) demonstrated a valid need for the establishment or restablishment of railroad service in the affected area; and (2) the technical capability to carry out the proposed project. ((.^ ^ ^ y such loau may be made for not to exceed 80 per centum of the total costs of the proposed project and shall be subject to such other terms and conditions as the Secretary may determine are necessary to carry out the purposes of this section. ((J) There is authorized to be appropriated not to exceed $10,000,000 to carry out the provisions of this section. Sums so appropriated shall remain available through June 30, 1975. (e) The Secretary shall impose as a condition of a n j such loan under this section such fair and equitable labor protective arrangements as are described in the Rail Passenger Service Act of 1970, as amended (45 U.S.C. 565). LINE ABANDONMENT

24 Stat. 379, 1 note.^^ ^'^^'

SEC. 6. (a) Except as provided in subsection (b) of this section, and except for the conveyance of facilities pursuant bo subsection 4(c) (3), all abandonment of facilities and services shall continue to be subjcct to the appropriate provisions of the Interstate Commerce Act. (^) '^^^ damage or destruction caused by the natural disasters of June 1972 to any railroad facility, equipment, or service therefrom, of a railroad obtaining assistance under this Act, or any action taken pursuant to this Act affecting any railroad, shall not be evidence in any proceeding before any Federal agency or in any court in which line abandonment is an issue. Any violation of this section shall be deemed to be prejudicial.

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