Page:United States Statutes at Large Volume 95.djvu/681

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 655

unless the Commission determines that such railroad has purchased a controlling interest in the Corporation. "(e) STOCK OFFERING.—In making any sale under a plan submitted under subsection (a)(2), the Secretary shall first offer for sale, to any employees whose wages are reduced pursuant to any agreement entered into in accordance with the goal set forth in section 1134(4) of the Northeast Rail Service Act of 1981, stock in amounts equal to the Ante, p. 645. extent of such wage reduction. "DEBT AND PREFERRED STOCK

"SEC. 402. (a) LIMITATION.—Prior to any sale of the common stock of 45 USC 762. the Corporation under section 401, the interest of the United States in any debt or preferred stock of the Corporation held by the United States (or any agent or instrumentality thereof, including the Association) shall be limited to any interest which attaches to such debt or preferred stock in the event of bankruptcy, or substantied sale, or liquidation of the assets of the Corporation. The Secretary shall substitute for the evidence of such debt or preferred stock held by the United States (or any such agent or instrumentality) contingency notes conforming to the limited terms set forth in this subsection. "(b) SUBSEQUENT ISSUE.—If the interest of the United States is limited under subsection (a) the Corporation may issue new debt or preferred stock subsequent to the issuance of the debt or preferred stock described in subsection (a) which shall have higher priority in the event of bankruptcy, liquidation, or abandonment of the assets of the Corporation than the debt or preferred stock described in subsection (a). "PROFITABILITY DETERMINATIONS

403. (a) FIRST DETERMINATION.—(1) On June 1, 1983, the 45 USC 763. Board of Directors of the Association (hereafter in this title referred to as the 'USRA Board') shall make a determination whether the Corporation will be a profitable carrier. For the purpose of making such determination the USRA Board shall assume that the interest of the United States in any debt or preferred stock of the Corporation is limited as required under section 402 of this Act. "(2) As used in this subsection, 'profitable carrier' means a carrier "Profitable that generates sufficient revenues to meet its expenses, including earner. reasonable maintenance of necessary equipment and facilities, and will be able to borrow capital in the private market sufficient to meet all its capital needs. "(3)(A) If the USRA Board determines under paragraph (1) of this subsection that the Corporation will be a profitable carrier, the Secretary shall continue to attempt to sell the interest of the United States in the common stock of the Corporation under section 401 of this Act. "(B) If the USRA Board determines under paragraph (1) of this subsection that the Corporation will not be a profitable carrier, the Secretary shall initiate discussions and negotiations under section 405 of this Act for the transfer of the Corporation's freight rail properties and service responsibilities. "(b) SECOND DETERMINATION.J-(1) AS soon after November 1, 1983, as the necessary information is available, if the USRA Board has determined under subsection (a)(2) of this section that the Corporation will be a profitable carrier such Board shall make a determination as to whether the Corporation has been a profitable carrier "SEC.

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