Page:United States Statutes at Large Volume 90 Part 1.djvu/143

 PUBLIC LAW 9 4 - 2 1 0 — F E B. 5, 1976

90 STAT. 9 3

tinder this subsection, and any such acceptance shall be deemed for all purposes to constitute a reasonable and prudent business judgment in compliance with any fiduciary obligations imposed on the Corporation or its directors. For purposes of this subsection, the term 'Corporation' includes a subsidiary of the Corporation. " (h) LOANS FOR P A Y M E N To r OBLIGATIONS.— (1) The Association is

authorized, subject to the limitations set forth in section 210(b) of this title, to enter into loan agreements, in amounts not to exceed Ante, p. 88. $230,000,000 in the aggregate, with the Corporation, the National Railroad Passenger Corporation, and any profitable railroad to which rail properties are transferred or conveyed pursuant to section 303(b)(1) of this Act, under which the Corporation, the National Railroad 45 USC 743. Passenger Corporation, and any profitable railroad entering into such agreement will agree to meet existing or prospective obligations of the railroads in reorganization in the region which the Association, in accordance with procedures established by the Association, determines should be paid by the Corporation, the National Railroad Passenger Corporation, or a profitable railroad, on behalf of the transferors, in order to avoid disruptions in ordinary business relationships. Such obligations shall be limited to amounts claimed by suppliers (including private c a r lines) of materials or services utilized in current rail operations, claims by shippers arising from current rail services, payments to railroads for settlement of current interline accounts, claims of employees arising under the collective bargaining agreements of the railroads in reorganization in the region and subject to section 3 of the Railw'ay Labor Act, claims of all employees or their personal 45 USC 153. representatives for personal injuries or death and subject to the provisions of Employers' Liability Acts (45 U.S.C. 51-60), and amounts 45 USC 51 note, required for adequate funding of accrued pension benefits existing at the time of a conveyance o r discontinuance of service under employee pension benefit plans described in section 505(a) of this Act. The Asso- 45 USC 775. ciation shall not make such a loan unless it first finds that the loan is for the purpose of paving obligations with respect to accrued pension plans referred to in the preceding sentence or that the Corporation, the National Railroad Passenger Corporation, or a profitable railroad is entitled to a loan pursuant to subsections (e) and (g) of section 504 of this Act, or unless it first finds that— Post, p. 113. " (A) provision for the payment of such obligations was not included in the financial projections of the final system p l a n; " (B) such obligations arose from rail operations prior to the date of conveyance of rail properties pursuant to section 303(b) (1) of this Act and are, under other applicable law, the responsibility of a railroad in reorganization in the region; " (C) the Corporation, the National Railroad Passenger Corporation, or a profitable railroad has advised the Association that the direct payment of such obli.q:ations by the Corporation, the National Railroad Passenger Corporation or profitable railroad is necessary to avoid disruptions in ordinary business relationships; " (D) the transferor is unable to pay such obligations within a reasonable period of t i m e; and " (E) with respect to loans made to the Corporation, the procedures to be followed by the Corporation, in seeking reimbursement from the railroa(is in reorganization in the region for obligations paid on their behalf under this subsection, have been jointly agreed to by the Finance Committee and the Corporation. " (2) The trustees of each railroad in reorganization in the region shall attempt to negotiate agency agreements with the Corporation,

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