Page:United States Statutes at Large Volume 90 Part 1.djvu/139

 PUBLIC LAW 94-210—FEB. 5, 1976

90 STAT. 89

" (b) MAXIMUM OBLIGATIONAL AUTHORITY.—The aggregate amount of obligations of the Association issued under this section which may be outstanding at any one time shall not exceed $275,000,000. No obligations or proceeds thereof shall be issued or made available after the date of enactment of the Railroad Revitalization and Regulatory Reform Act of 1976 except— ^«'e, p. 31. " (1) to meet existing or potential commitments for loans under section 211 of this title made or applied for prior to January 1, Post, p. 92. 1976; and "(2) for the purpose of providing loans pursuant to subsections (g) and (h) of section 211 of this title.". DEBENTURES AND SERIES A PREFERRED STOCK

SEC. 605. Title II of such Act is amended by adding at the end thereof the following new section: " D E B E N T U R E S AND SERIES A PREFERRED STOCK

"SEC. 216. (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 $1,100,000,000 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 beprescribedby the Association), to pro vide— "(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 211 of this title or which was incurred under section 215 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 $1,100,000,000 of series A preferred stock shall be made by the Association as required and requested by the Corporation, unless the Finance Committee makes an alRrmative 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 I)irectors) 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

Rules and regulations, ^^ USC 726.

45 USC 725.

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