45 U.S.C. § 1109 — Effectuation of cost reductions

Page 244 TITLE 45—RAILROADS § 1106 1 So in original. Probably should be ‘‘encumbrances,’’. Privatization Act, as the case may be,’’ after ‘‘subtitle’’ in second sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–317 effective 90 days after Oct. 19, 1996, and except as otherwise provided, applica- ble to proceedings that arise or continue after such ef- fective date, see section 605(e) of Pub. L. 104–317, set out as a note under section 719 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Amendment by Pub. L. 100–352 effective ninety days after June 27, 1988, except that such amendment not to apply to cases pending in Supreme Court on such effec- tive date or affect right to review or manner of review- ing judgment or decree of court which was entered be- fore such effective date, see section 7 of Pub. L. 100–352, set out as a note under section 1254 of Title 28, Judici- ary and Judicial Procedure. CASES PENDING IN SPECIAL COURT For applicability of amendment by Pub. L. 104–317 to cases pending in special court established under section 719(b) of this title, see section 605(d) of Pub. L. 104–317, set out as a note under section 719 of this title. ABOLITION OF UNITED STATES RAILWAY ASSOCIATION AND TRANSFER OF FUNCTIONS AND SECURITIES See section 1341 of this title. § 1106. Exemption from transfer taxes and fees; recordation (a)(1) All transfers or conveyances of any in- terest in rail property (whether real, personal, or mixed) which are made under any provision of or amendment made by this subtitle shall be ex- empt from any taxes, imposts, or levies now or hereby imposed, by the United States or by any State or any political subdivision of a State, on or in connection with such transfers or convey- ances or on the recording of deeds, bills of sale, liens, encumbrances, easements, or other instru- ments evidencing, effectuating, or incident to any such transfers or conveyances, whether im- posed on the transferor or on the transferee. Such transferors and transferees shall be enti- tled to record any such deeds, bills of sale, liens, encumberances,1 easements, or other instru- ments, and to record the release or removal of any preexisting liens or encumbrances of record with respect to properties so transferred or con- veyed, upon payment of any appropriate and generally applicable charges to compensate for the cost of the service performed. (2) This section shall not apply to Federal in- come tax laws. (b) Transfer of designated real property (in- cluding any interest in real property) authorized by the amendments made by part 2 of this sub- title shall have the same effect for purposes of rights and priorities with respect to such prop- erty as recordation on the transfer date of ap- propriate deeds, or other appropriate instru- ments, in offices appointed under State law for such recordation, except that acquiring rail car- riers and other entities shall proffer such deeds or other instruments for recordation within 36 months after the transfer date as a condition of preserving such rights and priorities beyond the expiration of that period. Conrail shall cooper- ate in effecting the timely preparation, execu- tion, and proffering for recordation of such deeds and other instruments. (Pub. L. 97–35, title XI, § 1153, Aug. 13, 1981, 95 Stat. 677.) Editorial Notes REFERENCES IN TEXT This subtitle, referred to in subsecs. (a)(1) and (b), is subtitle E (§§ 1131–1169) of title XI of Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 643, known as the Northeast Rail Serv- ice Act of 1981. Part 2 (§§ 1136–1142) of subtitle E enacted sections 581 to 587, 727, 744a, and 761 to 769a of this title, amended sections 601 and 741 of this title, and enacted provisions set out as a note under section 744a of this title. For complete classification of this subtitle to the Code, see Short Title note set out under section 1101 of this title and Tables. § 1107. Repealed. Pub. L. 99–509, title IV, § 4033(c)(1)(C)(i)(I), Oct. 21, 1986, 100 Stat. 1908 Section, Pub. L. 97–35, title XI, § 1154, Aug. 13, 1981, 95 Stat. 677, provided that no distribution of assets of Con- rail could be made with respect to any claims of United States until all other valid claims against Conrail were satisfied or until arrangements had been made for their satisfaction. § 1108. Concerted economic action (a) Strikes interfering with rail freight service of Conrail Any person engaging in concerted economic action over disputes with Amtrak Commuter or any commuter authority shall not be entitled to engage in any strike against, or otherwise to in- duce any employee of, Conrail, where an effect thereof is to interfere with rail freight service provided by Conrail. (b) Strikes interfering with Amtrak Commuter’s rail passenger service Any person engaging in concerted economic action over disputes arising out of freight oper- ations provided by Conrail shall not be entitled to engage in any strike against, or otherwise to induce any employee of, Amtrak Commuter or any commuter authority, where an effect there- of is to interfere with rail passenger service. (c) Railway Labor Act deemed violated Any concerted action in violation of this sec- tion shall be deemed to be a violation of the Railway Labor Act [45 U.S.C. 151 et seq.]. (Pub. L. 97–35, title XI, § 1158, Aug. 13, 1981, 95 Stat. 682.) Editorial Notes REFERENCES IN TEXT The Railway Labor Act, referred to in subsec. (c), is act May 20, 1926, ch. 347, 44 Stat. 577, which is classified principally to chapter 8 (§ 151 et seq.) of this title. For complete classification of this Act to the Code, see sec- tion 151 of this title and Tables. § 1109. Effectuation of cost reductions Any cost reductions resulting from the provi- sions of or the amendments made by this sub- title shall not be used to limit the maximum Page 245 TITLE 45—RAILROADS § 1112 1 See References in Text note below. level of any rate charged by Conrail for the pro- vision of rail service, to limit the amount of any increase in any such rate (including rates main- tained jointly by Conrail and other rail car- riers), or to limit a surcharge or cancellation otherwise lawful under chapter 107 1 of title 49. (Pub. L. 97–35, title XI, § 1159, Aug. 13, 1981, 95 Stat. 682.) Editorial Notes REFERENCES IN TEXT This subtitle, referred to in text, is subtitle E (§§ 1131–1169) of title XI of Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 643, known as the Northeast Rail Service Act of 1981. For complete classification of this subtitle to the Code, see Short Title note set out under section 1101 of this title and Tables. Chapter 107 of title 49, referred to in text, was omit- ted and a new chapter 107 enacted in the general amendment of subtitle IV of Title 49, Transportation, by Pub. L. 104–88, title I, § 102(a), Dec. 29, 1995, 109 Stat. 804, 809. § 1110. Repealed. Pub. L. 99–509, title IV, § 4033(c)(1)(C)(i)(II), Oct. 21, 1986, 100 Stat. 1908 Section, Pub. L. 97–35, title XI, § 1161, Aug. 13, 1981, 95 Stat. 682, related to transfer of Conrail light density rail service lines. § 1111. Repealed. Pub. L. 105–134, title IV, § 408, Dec. 2, 1997, 111 Stat. 2586 Section, Pub. L. 97–35, title XI, § 1163, Aug. 13, 1981, 95 Stat. 685; Pub. L. 99–272, title IV, § 4017(a)(1), Apr. 7, 1986, 100 Stat. 110, related to Northeast Corridor cost dispute. § 1112. Interstate Commerce Commission pro- ceedings (a) Final decisions involving railroads in bank- ruptcy Notwithstanding any other provision of sub- title IV of title 49, in any proceeding before the Commission under section 11324 or 11325 of title 49 involving a railroad in the Region, as defined in section 702 of this title, which was in a bank- ruptcy proceeding under section 77 of the Bank- ruptcy Act on November 4, 1979, the Commission shall, with or without a hearing, issue a final de- cision within a period not to exceed 180 days after receipt of an application under either such section. (b) Final decisions involving profitable railroads Notwithstanding any other provision of sub- title IV of title 49, in any proceeding before the Commission under section 11324 or 11325 of title 49 involving a profitable railroad in the Region, as defined in section 702 of this title, which re- ceived a loan under section 721(a) of this title, the Commission shall, with or without a hear- ing, issue a final decision within a period not to exceed 180 days after receipt of an application under either such section. (c) Interest of United States attaching in bank- ruptcy, liquidation, abandonment, etc. (1) If the Secretary determines under sub- section (b) that there is an agreement between a profitable railroad in the Region (as defined in section 702 of this title) which received a loan under section 721(a) of this title and a prospec- tive purchaser for the sale of such railroad, the Secretary shall limit the interest of the United States in any debt of such a railroad to an inter- est which attaches to such debt in the event of bankruptcy or substantial sale or liquidation of the assets of the railroad. The Secretary may substitute for the evidence of such debt contin- gency notes payable solely from the railroad op- erating assets then securing such debt, includ- ing reinvestments thereof, or such other contin- gency notes as the Secretary deems appropriate and which conform to the terms set forth in this subsection. (2) If the interest of the United States is lim- ited under paragraph (1), any new debt issued by such a railroad subsequent to the issuance of the debt described in paragraph (1) may have such higher priority in the event of bankruptcy, liq- uidation, or abandonment of the assets of such a railroad than the debt described in such para- graph as the Secretary and the railroad may agree. (3) In carrying out the duties under this sub- section, the Secretary may (A) enter into such agreements, (B) in accordance with any such agreements, cancel or cause to be cancelled or amend or cause to be amended any notes or se- curities currently held by agencies or instru- mentalities of the United States, and (C) accept in exchange as substitution therefor such instru- ments evidencing the indebtedness owed to such agencies or instrumentalities as, in the Sec- retary’s judgment, will effectuate the purposes of this subsection. (Pub. L. 97–35, title XI, § 1164, Aug. 13, 1981, 95 Stat. 685; Pub. L. 97–468, title V, § 510, Jan. 14, 1983, 96 Stat. 2554; Pub. L. 104–88, title III, § 331, Dec. 29, 1995, 109 Stat. 953.) Editorial Notes REFERENCES IN TEXT Section 77 of the Bankruptcy Act, referred to in sub- sec. (a), was classified to section 205 of former Title 11, Bankruptcy. 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 cur- rent provisions relating to railroad reorganization, see subchapter IV (§ 1161 et seq.) of chapter 11 of Title 11. AMENDMENTS 1995—Subsecs. (a), (b). Pub. L. 104–88 substituted ‘‘sec- tion 11324 or 11325’’ for ‘‘section 11344 or 11345’’. 1983—Subsec. (c)(1). Pub. L. 97–468, § 510(1), substituted ‘‘bankruptcy or substantial sale’’ for ‘‘bankruptcy, sub- stantial sale,’’ after ‘‘in the event of’’, and in last sen- tence substituted permission for the Secretary to sub- stitute contingency notes for evidence of the debt for the requirement that the Secretary substitute contin- gency notes for evidence of the debt and inserted provi- sion that the contingency notes be payable solely from the railroad operating assets then securing such debt, including reinvestments thereof, or be other contin- gency notes as the Secretary deems appropriate. Subsec. (c)(2). Pub. L. 97–468, § 510(2), substituted per- mission that new debt may have such higher priority in the event of bankruptcy, liquidation, or abandonment of the assets of such a railroad than the debt described in par. (1) as the Secretary and the railroad may agree