45 U.S.C. § 664 — Issuance of obligations to Secretary of the

Page 153 TITLE 45—RAILROADS § 664 Pub. L. 95–611, § 3(b), Nov. 8, 1978, 92 Stat. 3089; Pub. L. 96–86, § 115(a), Oct. 12, 1979, 93 Stat. 662; Pub. L. 96–101, § 7(a)–(c), Nov. 4, 1979, 93 Stat. 739, 740; Pub. L. 104–88, title III, § 325(2), Dec. 29, 1995, 109 Stat. 951.) Editorial Notes REFERENCES IN TEXT The Bankruptcy Act, referred to in subsecs. (a) and (c), is act July 1, 1898, ch. 541, 30 Stat. 544, which was classified generally to former Title 11, Bankruptcy. Section 77 of this Act was classified to section 205 of former Title 11. The Act was repealed effective Oct. 1, 1979, by Pub. L. 95–598, §§ 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of which enacted revised Title 11. For current provisions relating to railroad reorganiza- tion, see subchapter IV (§ 1161 et seq.) of chapter 11 of Title 11. AMENDMENTS 1995—Subsec. (a). Pub. L. 104–88, § 325(2)(B), sub- stituted ‘‘Board’’ for ‘‘Commission’’ in introductory provisions. Subsec. (b). Pub. L. 104–88 substituted ‘‘Board’’ for ‘‘Commission’’ wherever appearing and ‘‘subchapter II of chapter 113 of title 49’’ for ‘‘the provisions of section 5 of the Interstate Commerce Act’’ in par. (4). 1979—Subsec. (a). Pub. L. 96–101, § 7(a), struck out ‘‘upon a finding that the guarantee of certificates is necessary in order for a railroad which has received continued loan advances, pursuant to section 721(d)(1) of this title, to maintain rail services in the region (as such term is defined in section 702(15) of this title)’’ after ‘‘of this subsection’’ and provision requiring that Secretary not make any waiver under preceding sen- tence after Dec. 31, 1979. Subsec. (c). Pub. L. 96–101, § 7(b), added subsec. (c). Former subsec. (c) was repealed by Pub. L. 95–598. See 1978 Amendment note below. Subsec. (e). Pub. L. 96–101, § 7(c), substituted ‘‘$200,000,000’’ for ‘‘$125,000,000’’ and struck out provision requiring that with respect to a railroad which filed a petition for reorganization during fiscal year 1978, dur- ing period Oct. 1, 1979, through Nov. 30, 1979, certifi- cates be issued without regard to limitations of subsec. (a) of this section and with such priority in payment as Secretary deems appropriate to secure repayment, for purpose of continuing service on railroad system at level in effect on Oct. 1, 1979. Pub. L. 96–86 provided that, with respect to a railroad which filed a petition for reorganization during fiscal year 1978, during period Oct. 1, 1979, through Nov. 30, 1979, certificates shall be issued without regard to limi- tations of subsec. (a) of this section and with such pri- ority in payment as Secretary deems appropriate to se- cure repayment, for purpose of continuing service on railroad system at level in effect on Oct. 1, 1979. 1978—Subsec. (a). Pub. L. 95–611 inserted provision au- thorizing Secretary to waive requirements of para- graphs (1), (5), and (6) of subsec. (a) until Dec. 31, 1979. Subsec. (c). Pub. L. 95–598 struck out subsec. (c) which related to treatment of a certificate as an ad- ministrative expense and priority of the certificate. 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. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–598 effective Oct. 1, 1979, see section 402(a) of Pub. L. 95–598, set out as an Effec- tive Date note preceding section 101 of Title 11, Bank- ruptcy. § 663. Inspection of accounts, books, etc., of rail- road receiving financial assistance The Secretary is authorized to, and shall as necessary, inspect and copy all accounts, books, records, memorandums, correspondence, and other documents of any railroad which has re- ceived financial assistance under this chapter concerning any matter which may bear upon (1) the ability of such railroad to repay the loan within the time fixed therefor, (2) the interest of the United States in the property of such rail- road, and (3) to insure that the purpose of this chapter is being carried out. (Pub. L. 91–663, § 4, Jan. 8, 1971, 84 Stat. 1976.) § 664. Issuance of obligations to Secretary of the Treasury (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, he is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such ma- turities, and subject to such terms and condi- tions, as may be prescribed by the Secretary with the approval of the Secretary of the Treas- ury. 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 pre- ceding the issuance of the notes or other obliga- tions. The Secretary of the Treasury shall pur- chase 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 sub- section. 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 Sec- retary such sums as may be necessary to pay the principal and interest on the notes or obliga- tions issued by him to the Secretary of the Treasury. (b) Revocation of guarantee; legal effect of guar- antee; validity and incontestability of guar- anteed certificate Any guarantee made by the Secretary under this chapter shall not be terminated, canceled, or otherwise revoked, except as provided by the terms and conditions prescribed by the Sec- retary under section 662(d) of this title; shall be conclusive evidence that such guarantee com- plies fully with the provisions of this chapter, and of the approval and legality of the principal amount, interest rate, and all other terms of the certificates and the guarantee; and shall be Page 154 TITLE 45—RAILROADS § 665 valid and incontestable in the hands of a holder of a guaranteed certificate except for fraud or material misrepresentation on the part of such holder. (c) Enforcement by Attorney General of rights accruing to United States because of guar- antee The Attorney General shall take such action as may be appropriate to enforce any right ac- cruing to the United States by reason of its hav- ing paid money or incurred expenses as a result of making such guarantees. (Pub. L. 91–663, § 5, Jan. 8, 1971, 84 Stat. 1976.) Editorial Notes CODIFICATION In subsec. (a), ‘‘chapter 31 of title 31’’ and ‘‘that chap- ter’’ substituted for ‘‘the Second Liberty Bond Act, as amended’’ and ‘‘that Act, as amended,’’, respectively, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance. § 665. Utilization of services and facilities of Fed- eral departments and agencies; reimburse- ment; consultation with Board; coordination of activities with Federal departments and agencies (a) In carrying out the provisions of this chap- ter the Secretary may use available services and facilities of other departments, agencies, and in- strumentalities of the Federal Government with their consent and on a reimbursable basis, and shall consult with the Board in carrying out the provisions of this chapter. (b) Departments, agencies, and instrumental- ities of the Federal Government shall exercise their powers, duties, and functions in such man- ner as will assist in carrying out the provisions of this chapter. (Pub. L. 91–663, § 6, Jan. 8, 1971, 84 Stat. 1977; Pub. L. 104–88, title III, § 325(3), Dec. 29, 1995, 109 Stat. 951.) Editorial Notes AMENDMENTS 1995—Subsec. (a). Pub. L. 104–88 substituted ‘‘Board’’ for ‘‘Interstate Commerce Commission’’. 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. § 666. Court supervision of expenditures; find- ings; report to Secretary In addition to other duties prescribed by sec- tion 77 of the Bankruptcy Act, the court shall maintain supervision of the expenditure of funds obtained pursuant to section 662 of this title 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 re- garding such expenditures, and shall report those findings to the Secretary. (Pub. L. 91–663, § 7, Jan. 8, 1971, 84 Stat. 1977.) Editorial Notes REFERENCES IN TEXT Section 77 of the Bankruptcy Act, referred to in text, was classified to section 205 of former Title 11, Bank- ruptcy. The Bankruptcy Act (act July 1, 1898, ch. 541, 30 Stat. 544) was repealed effective Oct. 1, 1979, by Pub. L. 95–598, §§ 401(a), 402(a), Nov. 6, 1978, 92 Stat. 2682, section 101 of which enacted revised Title 11. For current provi- sions relating to railroad reorganization, see sub- chapter IV (§ 1161 et seq.) of chapter 11 of Title 11. § 667. Audit by Comptroller General; report to Congress The Comptroller General of the United States, or any of his duly authorized representatives, shall have access to such information, books, records, and documents as he determines nec- essary effectively to audit financial transactions and operations carried out by the Secretary in the administration of this chapter. The Comp- troller General shall make such reports to the Congress on the results of any such audits as are appropriate. (Pub. L. 91–663, § 8, Jan. 8, 1971, 84 Stat. 1977.) § 668. Guarantee fees; amount; deposit The Secretary shall prescribe a guarantee fee in connection with each loan guaranteed under this chapter which shall be collected from the railroad upon repayment of the loan guaranteed. Such fee shall be in an amount that the Sec- retary estimates to be necessary to cover the administrative costs of carrying out the provi- sions of this chapter with respect to such loan. Sums realized from such fees shall be deposited in the Treasury as miscellaneous receipts. (Pub. L. 91–663, § 9, Jan. 8, 1971, 84 Stat. 1978.) § 669. Repealed. Pub. L. 97–375, title I, § 111(e), Dec. 21, 1982, 96 Stat. 1821 Section, Pub. L. 91–663, § 10, Jan. 8, 1971, 84 Stat. 1978; Pub. L. 96–470, title I, § 112(h), Oct. 19, 1980, 94 Stat. 2240, directed the Secretary to make a report to the Presi- dent and Congress on financial condition of each rail- road except Central Railroad Company of New Jersey and Penn Central Transportation Company, having a loan guaranteed under this chapter ninety days after the making of such guarantee and annually thereafter throughout existence of such loan. CHAPTER 16—REGIONAL RAIL REORGANIZATION SUBCHAPTER I—GENERAL PROVISIONS Sec. 701. Congressional declaration of policy. 702. Definitions. SUBCHAPTER II—UNITED STATES RAILWAY ASSOCIATION 711. Formation and structure. 712. Functions of Association. 713. Access to information. 714, 715. Omitted or Repealed. 716. Final system plan. 717. Adoption of final system plan. 718. Review by Congress. 719. Judicial review. 720. Obligations of Association. 721. Loans.