Page:United States Statutes at Large Volume 87.djvu/1037

, -•'-'-'i.^T'ji^ssisa

87 STAT. ]

PUBLIC LAW 93-236-JAN. 2, 1974

1005

(o) 1 NiTLAL (•AinTAi.izATioN.—111 ovdi'.v to csin v out the linul system plan the Corporation is authorized to issue stock and other securities. Convinon stock shall be issued initially to the estates of railroads in reorjranization in the region in exchange for rail properties conveyed to the CoT'poration pursuant to the final system plan. Xothing in this subsecticm shall preclude the Corporation from repurchasing the common stock initially issued through payments out of profits in order to establish an employee stock ownership plan; and nothing in this subsection shall preclude the recipients of common stock initially issued from establishing an employee stock ownership plan. (f) AUDIT AND EXPENDITURES.—So long as 50 per centum or more, as determined by the Secretary of the Treasury, of the outstanding indebtedness of the Corporation consists of obligations of the Association or other debts owing to or guaranteed by the United States, the Corporation shall be subject to the provisions of the Government Corporation (Control Act for the purposes of a Federal Government audit. 59 Stat. 597. Section 201 of the Government Corporation Control Act (31 U.S.C. ^o^te."^^ ^^^ S56) is amended by inserting at the end thereof the following: ", and Ante, p. 992. (9) the C!onsolidated Rail Corporation to the extent provided in the Regional Rail Reorganization Act of 1973.". (g) ANNUAL REPORT.—The Corporation shall transmit to the Con- ^^ss°Ind°pfeTi'~ gress and the President, not later than 90 days after the end of each den^t! ^" fiscal year, a comprehensive and detailed report on all activities and accomplisliments of the Corporation during the preceding fiscal year. POWERS A N D D U T I E S OF THE CORPORATION

SK(\ 30-2. The Corporation shall have all of the powers and is subject to all of the duties vested in it under this Act, in addition to the powers conferred upon it under the laws of the State or States in which it is incorporated and the powers of a railroad in any State in which it opeiates. The Corporation is authorized and directed to— (a) acquire rail properties designated in the final system plan to be transferied or conveyed to i t; (b) operate rail service over such rail properties except as provided under sections 304(e) and 601 (d)(3) of this Act; (c) rehabilitate, improve, and modernize such rail properties: and (d) maintain adequate and efficient rail services. So long as 50 per centum or more, as determined by the Secretary of the Treasury, of the outstanding indebtedness of the Corporation consists of obligations of the Association or other debts owing to or guaranteed by the United States, the Corporation shall not engage in activities which are not related to transportation. VALUATION AND CONVEYANCE OF RAIL PROPERTIES

303. (a) DEPOSIT W I T H COURT.—Within 10 days after delivery of a certified copy of a final system plan pursuant to section 209(c) of this Act— (1) the Corporation, in exchange for the rail properties of the railroads in reorganization in the region and of railroads leased, operated, or controlled by railroads in reorganization in the region to be transferred to the Corporation, shall deposit with the special court all of the stock and other securities of the Corporation and obligations of the Association designated in the final system plan to be exchanged for such rail properties; (2) each profitable railroad operating in the region purchasing tail properties from a railroad in reorganization in the region, or from a railroad leased, operated, or controlled by a railroad in SEC.

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