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45 U.S.C. § 662 — Guarantee of certificates
Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority of Secretary; prerequisites; procedures; waiver** The trustees of any railroad undergoing reorganization under section 77 of the Bankruptcy Act, as amended, upon approval of the court, may apply to the Secretary for the guarantee of certificates. The Secretary, after consultation with the Board, is authorized to guarantee such certificates upon findings in writing that—
(1) cessation of essential transportation services by the railroad would endanger the public welfare;
(2) cessation of such services is imminent;
(3) there is no other practicable means of obtaining funds to meet payroll and other expenses necessary to provide such services than the issuance of such certificates;
(4) such certificates cannot be sold without a guarantee;
(5) the railroad can reasonably be expected to become self-sustaining; and
(6) the probable value of the assets of the railroad in the event of liquidation provides reasonable protection to the United States.
The Secretary shall publish notice of his intention to make such finding in the Federal Register not less than fifteen days prior to such finding, give interested persons, including agencies of the Federal Government, an opportunity to submit written data, views, or arguments (with or without opportunity for oral presentation), and give consideration to the relevant matter presented. The Secretary for good cause shown and upon a finding that extraordinary circumstances warrant doing so may waive the requirements of the preceding sentence. Notwithstanding any other provision of this section, the Secretary, in guaranteeing certificates under this section, is authorized to waive the findings required by paragraphs (1), (5), and (6) of this subsection.
**(b) Conditions to guarantee** As a condition to a guarantee,
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Source location: Title 45, Chapter 15, § 662; chapter-015-emergency-rail-services.md
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**(a) Authority of Secretary; prerequisites; procedures; waiver** The trustees of any railroad undergoing reorganization under section 77 of the Bankruptcy Act, as amended, upon approval of the court, may apply to the Secretary for the guarantee of certificates. The Secretary, after consultation with the Board, is authorized to guarantee such certificates upon findings in writing that—
(1) cessation of essential transportation services by the railroad would endanger the public welfare;
(2) cessation of such services is imminent;
(3) there is no other practicable means of obtaining funds to meet payroll and other expenses necessary to provide such services than the issuance of such certificates;
(4) such certificates cannot be sold without a guarantee;
(5) the railroad can reasonably be expected to become self-sustaining; and
(6) the probable value of the assets of the railroad in the event of liquidation provides reasonable protection to the United States.
The Secretary shall publish notice of his intention to make such finding in the Federal Register not less than fifteen days prior to such finding, give interested persons, including agencies of the Federal Government, an opportunity to submit written data, views, or arguments (with or without opportunity for oral presentation), and give consideration to the relevant matter presented. The Secretary for good cause shown and upon a finding that extraordinary circumstances warrant doing so may waive the requirements of the preceding sentence. Notwithstanding any other provision of this section, the Secretary, in guaranteeing certificates under this section, is authorized to waive the findings required by paragraphs (1), (5), and (6) of this subsection.
**(b) Conditions to guarantee** As a condition to a guarantee, the Secretary, after consultation with the Board, shall require that:
(1) the proceeds of the sale of certificates guaranteed under this chapter, will be used solely for meeting payroll and other expenses which, if not met, would preclude continued provision of essential transportation services by the railroad;
(2) other revenues of the railroad will be used, to the fullest extent possible, for such expenses;
(3) proceeds from the sale of assets will be devoted to the fullest extent possible to the provision of essential transportation services by the railroad; and
(4) in the event of actual or threatened cessation of essential transportation services by the railroad, the Secretary shall have the option to procure by purchase or lease trackage rights over the lines of the railroad and such equipment as may be necessary to provide such services by the Secretary or his assignee, and, in the event of a default in the payment of principal or interest as provided by the certificates, the money paid or expenses incurred by the United States as a result thereof shall be deemed to have been applied to the purchase or lease price. The terms of purchase or lease shall be subject to the approval of the reorganization court and the operation over the lines shall be subject to the approval of the Board pursuant to subchapter II of chapter 113 of title 49, but in no event shall the rendition of services by the Secretary or his assignee await the outcome of proceedings before the reorganization court or the Board.
**(c) Certificate as administrative expense; priority of certificate** The Secretary shall not guarantee any certificate under this section unless such certificate is treated as an expense of administration and receives the highest lien on the railroad’s property and priority in payment under the Bankruptcy Act, except that this subsection shall not apply to certificates guaranteed for a railroad that is actively engaged in restructuring, as defined by the Secretary. For purposes of this subsection, the term “restructuring” includes an employee ownership plan or an employee-shipper ownership plan.
**(d) Interest rate; date of maturity; other terms and conditions** A certificate under this chapter shall bear interest at such per annum rate as the Secretary deems reasonable, taking into account the range of interest rates prevailing in the private market for similar loans and the risks assumed by the Federal Government; nor may its maturity date, including all extensions and renewals thereof, be later than fifteen years from the date of original issuance. The Secretary may prescribe such other terms and conditions as he deems appropriate. In each case, the Secretary shall consider the feasibility of requiring the railroad to dispose of nonrailroad assets as a condition to a guarantee.
**(e) Maximum aggregate principal amount outstanding** At any one time the outstanding aggregate principal amount of all certificates guaranteed under this chapter shall not exceed $200,000,000.
**(f) Rules and regulations** The Secretary shall issue such rules and regulations as are appropriate to carry out the authority granted by this chapter.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment.—** The Surface Transportation Board is an independent establishment of the United States Government.
**(b) Membership.—**
(1) The Board shall consist of 5 members, to be appointed by the President, by and with the advice and consent of the Senate. Not more than 3 members may be appointed from the same political party.
(2) At all times—
(A) at least 3 members of the Board shall be individuals with professional standing and demonstrated knowledge in the fields of transportation, transportation regulation, or economic regulation; and
(B) at least 2 members shall be individuals with professional or business experience (including agriculture) in the private sector.
(3) The term of each member of the Board shall be 5 years and shall begin when the term of the predecessor of that member ends. An individual appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of that individual was appointed, shall be appointed for the remainder of that term. When the term of office of a member ends, the member may continue to serve until a successor is appointed and qualified, but for a period not to exceed one year. The President may remove a member for inefficiency, neglect of duty, or malfeasance in office.
(4) No individual may serve as a member of the Board for more than 2 terms. In the case of an individual appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of that individual was appointed, such individual may not be appointed for more than one additional term.
(5) A member of the Board may not have a pecuniary interest in, hold an official relation to, or own stock in or bonds of, a carrier providing transportation by any mode and may not engage in another busines
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Federal law — U.S. Code and appendices · legal_authorities
In this title the following definitions shall apply:
(1) The term “accountant” means accountant authorized under applicable law to practice public accounting, and includes professional accounting association, corporation, or partnership, if so authorized.
(2) The term “affiliate” means—
(A) entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(B) corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by the debtor, or by an entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of the outstanding voting securities of the debtor, other than an entity that holds such securities—
(i) in a fiduciary or agency capacity without sole discretionary power to vote such securities; or
(ii) solely to secure a debt, if such entity has not in fact exercised such power to vote;
(C) person whose business is operated under a lease or operating agreement by a debtor, or person substantially all of whose property is operated under an operating agreement with the debtor; or
(D) entity that operates the business or substantially all of the property of the debtor under a lease or operating agreement.
(3) The term “assisted person” means any person whose debts consist primarily of consumer debts and the value of whose nonexempt property is less than $150,000.11 See Adjustment of Dollar Amounts not
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Forms and denominations; maturity dates; terms and conditions; interest rate; purchase and sale of obligations by Secretary of the Treasury; authorization of appropriations** To enable the Secretary to carry out his rights and responsibilities under [section 662 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title45-section662&num=0&edition=prelim), he is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions, as may be prescribed by the Secretary with the approval of the Secretary of the Treasury. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury shall purchase any notes and other obligations issued hereunder and for that purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, and the purposes for which securities may be issued under that chapter are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this subsection. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. There are authorized to be appropriated to the Secretary such sums as may be necessary to pay the principal and interest o
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Federal law — U.S. Code and appendices · legal_authorities
In addition to other duties prescribed by section 77 of the Bankruptcy Act, the court shall maintain supervision of the expenditure of funds obtained pursuant to [section 662 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title45-section662&num=0&edition=prelim) for the purpose of assuring that such funds are used solely for purposes set forth in subsection (b) of such section, shall make periodic findings regarding such expenditures, and shall report those findings to the Secretary.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) to (c) Omitted**
**(d) Authorization** The Secretary of Transportation shall, under the authority of the Emergency Rail Services Act of 1970 [[45 U.S.C. 661](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title45-section661&num=0&edition=prelim) et seq.], immediately guarantee trustee certificates of the Milwaukee Railroad, on the basis of an estimate of the amount required to be provided under subsection (e) of this section, for purposes of allowing the Milwaukee Railroad, commencing November 1, 1979, to maintain its entire railroad system in accordance with [section 920 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title45-section920&num=0&edition=prelim), and as required to finance operations which the Milwaukee Railroad continues for the 60-day period beginning on the date of the occurrence of an event described in [section 920(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title45-section920/b&num=0&edition=prelim) or on April 1, 1980, whichever first occurs. Such guarantee shall be made without regard to the findings set forth in section 3(a) of the Emergency Rail Services Act of 1970 [[45 U.S.C. 662(a)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title45-section662/a&num=0&edition=prelim)], and the provisions of section 3(b)(3) [[45 U.S.C. 662(b)(3)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title45-section662/b/3&num=0&edition=prelim)] and the last two sentences of section 3(d) of such Act [[45 U.S.C. 662(d)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title45-section662/d&num=0&edition=prelim)] shall not apply to such guarantee.
**(e) Amount of guarantee** The Secretary shall guarantee trustee certificates of the Milwaukee Rai
Source: Supplied U.S. Code snapshot — release unconfirmed · 45 U.S.C. § 906
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Federal law — U.S. Code and appendices · legal_authorities
Page 152
TITLE 45—RAILROADS
§ 662
‘‘ ‘Commission’ means the Interstate Commerce Com-
mission.’’
Par. (3). Pub. L. 104–88, § 325(1)(B), substituted ‘‘rail
carrier subject to part A of subtitle IV of title 49’’ for
‘‘common carrier by railroad subject to part I of the
Interstate Commerce Act (49 U.S.C. 1–27)’’.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1995 AMENDMENT
Amendment by Pub. L. 104–88 effective Jan. 1, 1996,
see section 2 of Pub. L. 104–88, set out as an Effective
Date note under section 1301 of Title 49, Transpor-
tation.
SHORT TITLE
Pub. L. 91–663, § 1, Jan. 8, 1971, 84 Stat. 1975, provided:
‘‘That this Act [enacting this chapter] may be cited as
the ‘Emergency Rail Services Act of 1970’.’’
§ 662. Guarantee of certificates
(a) Authority of Secretary; prerequisites; proce-
dures; waiver
The trustees of any railroad undergoing reor-
ganization under section 77 of the Bankruptcy
Act, as amended, upon approval of the court,
may apply to the Secretary for the guarantee of
certificates. The Secretary, after consultation
with the Board, is authorized to guarantee such
certificates upon findings in writing that—
(1) cessation of essential transportation
services by the railroad would endanger the
public welfare;
(2) cessation of such services is imminent;
(3) there is no other practicable means of ob-
taining funds to meet payroll and other ex-
penses necessary to provide such services than
the issuance of such certificates;
(4) such certificates cannot be sold without a
guarantee;
(5) the railroad can reasonably be expected
to become self-sustaining; and
(6) the probable value of the assets of the
railroad in the event of liquidation provides
reasonable protection to the United States.
The Secretary shall publish notice
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