Title 11 — Bankruptcy
Chapter 11 — Reorganization
§ 1170. Abandonment of railroad line
Statutory text
The court, after notice and a hearing, may authorize the abandonment of all or a portion of a railroad line if such abandonment is—
in the best interest of the estate; or
essential to the formulation of a plan; and
consistent with the public interest.
If, except for the pendency of the case under this chapter, such abandonment would require approval by the Board under a law of the United States, the trustee shall initiate an appropriate application for such abandonment with the Board. The court may fix a time within which the Board shall report to the court on such application.
After the court receives the report of the Board, or the expiration of the time fixed under subsection (b) of this section, whichever occurs first, the court may authorize such abandonment, after notice to the Board, the Secretary of Transportation, the trustee, any party in interest that has requested notice, any affected shipper or community, and any other entity prescribed by the court, and a hearing.
Enforcement of an order authorizing such abandonment shall be stayed until the time for taking an appeal has expired, or, if an appeal is timely taken, until such order has become final.
If an order authorizing such abandonment is appealed, the court, on request of a party in interest, may authorize suspension of service on a line or a portion of a line pending the determination of such appeal, after notice to the Board, the Secretary of Transportation, the trustee, any party in interest that has requested notice, any affected shipper or community, and any other entity prescribed by the court, and a hearing. An appellant may not obtain a stay of the enforcement of an order authorizing such suspension by the giving of a supersedeas bond or otherwise, during the pendency of such appeal.
In authorizing any abandonment of a railroad line under this section, the court shall require the rail carrier to provide a fair arrangement at least as protective of the interests of employees as that established under section 11326(a) of title 49.
Nothing in this subsection shall be deemed to affect the priorities or timing of payment of employee protection which might have existed in the absence of this subsection.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 95–598 · 92 Stat. 2549
Enacted · 11 U.S.C. § 1170
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2643
Source evidence
Code source credit
Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2643Staggers Rail Act of 1980
Pub. L. 96–448 title II § 227(a) · 94 Stat. 1895
Added · 11 U.S.C. § 1170(e)
Pub. L. 96–448 added subsec. (e)
Source evidence
Code amendment note
Subsec. (e). Pub. L. 96–448 added subsec. (e).Enacted provision · exact public law section
(a) Section 1170 of title 11, United States Code, is amended Railroad line abandonments. by adding at the end thereof the following new subsection: “(e) (1) In authorizing any abandonment of a railroad line under this section, the court shall require the rail carrier to provide a fair arrangement at least as protective of the interests of employees as that established under section 11347 of title 49. “(2) Nothing in this subsection shall be deemed to affect the priorities or timing of payment of employee protection which might have existed in the absence of this subsection. .Pub. L. 98–353 § 521(a) · 98 Stat. 333
Inserted · 11 U.S.C. § 1170(a)
Pub. L. 98–353, § 521(a), inserted “of all or a portion” after “the abandonment”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 98–353, § 521(a), inserted “of all or a portion” after “the abandonment”.Enacted provision · exact public law section
(a) Section 1170(a) of title 11 of the United States Code is amended by inserting “of all or a portion” after “the abandonment”.Pub. L. 98–353 § 521(b) · 98 Stat. 333
Inserted · 11 U.S.C. § 1170(c)
Pub. L. 98–353, § 521(b), inserted a comma after “abandonment”
Source evidence
Code amendment note
Subsec. (c). Pub. L. 98–353, § 521(b), inserted a comma after “abandonment”.Enacted provision · exact public law section
(b) Section 1170(c) of title 11 of the United States Code is amended by inserting a comma after “abandonment”.Pub. L. 98–353 § 521(c) · 98 Stat. 333
Substituted · 11 U.S.C. § 1170(d)(2)
Pub. L. 98–353, § 521(c), substituted “such abandonment” for “the abandonment of a railroad line” in two places
Substituted · 11 U.S.C. § 1170(d)(2)
Pub. L. 98–353, § 521(c), substituted “suspension” for “termination” in two places
Source evidence
Code amendment note
Subsec. (d)(2). Pub. L. 98–353, § 521(c), substituted “such abandonment” for “the abandonment of a railroad line”, and “suspension” for “termination” in two places.Enacted provision · exact public law section
(c) Section U70(d)(2) of title 11 of the United States Code is amended by— (1) striking out “the abandonment of a railroad line” and inserting in lieu thereof “such abandonment”; and (2) striking out “termination” each place it appears and inserting in lieu thereof “suspension”.ICC Termination Act of 1995
Pub. L. 104–88 title III § 302(2) · 109 Stat. 803
Substituted · 11 U.S.C. § 1170(b); 11 U.S.C. § 1170(c); 11 U.S.C. § 1170(d)(2)
Pub. L. 104–88 substituted “Board” for “Commission” wherever appearing
Source evidence
Code amendment note
Subsecs. (b), (c), (d)(2). Pub. L. 104–88 substituted “Board” for “Commission” wherever appearing.Enacted provision · exact public law section
(2) by striking “Commission” each place it appears and 11 USC 1164, 1170, 1172. inserting in lieu thereof “Board”.Pub. L. 109–8 title XII § 1217 · 119 Stat. 23
Substituted · 11 U.S.C. § 1170(e)(1)
Pub. L. 109–8 substituted “section 11326(a)” for “section 11347”
Source evidence
Code amendment note
Subsec. (e)(1). Pub. L. 109–8 substituted “section 11326(a)” for “section 11347”.Enacted provision · exact public law section
SEC. 1217. ABANDONMENT OF RAILROAD LINE. Section 1170(e)(1) of title 11, United States Code, is amended by striking “section 11347” and inserting “section 11326(a)”.Effective date note
Amendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
7 of 8 references resolved to an enrolled provision · 1 partial
Notes
Historical and Revision Notes
senate report no. 95–989
Subsection (a) of section 1178 [enacted as section 1170] permits the court to authorize the abandonment of a railroad line if the abandonment is consistent with the public interest and either in the best interest of the estate or essential to the formulation of a plan. This avoids the normal abandonment requirements of generally applicable railroad regulatory law.
Subsection (b) permits some participation by the Interstate Commerce Commission in the abandonment process. The Commission’s role, however, is only advisory. The Commission will represent the public interest, while the trustee and various creditors and equity security holders will represent the interests of those who have invested money in the enterprise. The court will balance the various interests and make an appropriate decision. The subsection specifies that if, except for the pendency of the railroad reorganization case, the proposed abandonment would require Commission approval, then the trustee, with the approval of the court, must initiate an application for the abandonment with the Commission. The court may then fix a time within which the Commission must report to the court on the application.
Subsection (c) permits the court to act after it has received the report of the Commission or the time fixed under subsection (b) has expired, whichever occurs first. The court may then authorize the abandonment after notice and a hearing. The notice must go to the Commission, the Secretary of Transportation, the trustee, and party in interest that has requested notice, any affected shipper or community, and any other entity that the court specifies.
Subsection (d) stays the enforcement of an abandonment until the time for taking an appeal has expired, or if an appeal has been taken, until the order has become final. However, the court may, and after notice and a hearing, on request of a party in interest authorize termination of service on the line or a portion of the line pending the determination of the appeal. The notice required is the same as that required under subsection (c). If the court authorizes termination of service pending determination of the appeal, an appellant may not obtain a stay of the enforcement of the order authorizing termination, either by the giving of a supersedeas bond or otherwise, during the pendency of the appeal.
Editorial Notes
Amendments1980–2005 · 4 rounds
2005
Subsec. (e)(1). Pub. L. 109–8 substituted “section 11326(a)” for “section 11347”.
1995
Subsecs. (b), (c), (d)(2). Pub. L. 104–88 substituted “Board” for “Commission” wherever appearing.
1984
Subsec. (a). Pub. L. 98–353, § 521(a), inserted “of all or a portion” after “the abandonment”.
Subsec. (c). Pub. L. 98–353, § 521(b), inserted a comma after “abandonment”.
Subsec. (d)(2). Pub. L. 98–353, § 521(c), substituted “such abandonment” for “the abandonment of a railroad line”, and “suspension” for “termination” in two places.
1980
Subsec. (e). Pub. L. 96–448 added subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 2005 Amendment
Amendment by Pub. L. 109–8 effective 180 days after , and not applicable with respect to cases commenced under this title before such effective date, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.
Effective Date of 1995 Amendment
Amendment by Pub. L. 104–88 effective , see section 2 of Pub. L. 104–88, set out as an Effective Date note under section 1301 of Title 49, Transportation.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98–353 effective with respect to cases filed 90 days after , see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.
Effective Date of 1980 Amendment
Pub. L. 96–448, title VII, § 710, , 94 Stat. 1966, provided that:
“(a) Except as provided in subsections (b), (c), and (d) of this section, the provisions of this Act and the amendments made by this Act [see Tables for classification] shall take effect on .
“(b) Section 206 of this Act [enacting former section 10712 of Title 49, Transportation] shall take effect on .
“(c) Section 218(b) of this Act [amending former section 10705 of Title 49] shall take effect on .
“(d) Section 701 of this Act [enacting section 1018 of Title 45, Railroads, and amending sections 231f, 825, 906, 913, 914, 1002, 1005, 1007, and 1008 of Title 45] shall take effect on the date of enactment of this Act [].”