§ 906. Guarantee of trustee certificates

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.

1. 1979

   Milwaukee Railroad Restructuring Act

   Pub. L. 96–101 § 7 · 93 Stat. 736

   Enacted · 45 U.S.C. § 906

   Pub. L. 96–101, § 7(less (a)–(c)), Nov. 4, 1979, 93 Stat. 740

   Source evidence

   Code source credit
   Pub. L. 96–101, § 7(less (a)–(c)), Nov. 4, 1979, 93 Stat. 740

   Enacted provision · exact public law section
   Sec. 7. emergency rail services act of 1970 (a) Subsection (a) of section 3 of the Emergency Rail Services Act of 1970 (45 U.S.C. 662(a)) is amended by striking out “upon a finding” in the fifth sentence and all that follows in that subsection and inserting in lieu thereof a period. (b) Section 3 of the Emergency Rail Services Act of 1970 (45 U.S.C. 662) is amended by inserting after subsection (b) the following new subsection: “(c) 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 92 Stat. 2549. 11 USC 101 et seq. 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.”. (c) Section 3(e) of the Emergency Rail Services Act of 1970 (45 U.S.C. 662(e)) is amended— (1) by striking out “$125,000,000” and inserting in lieu thereof “$200,000,000”; and (2) by striking out the last sentence thereof, as added by Public Law 96–86. (d) The Secretary of Transportation shall, under the authority of the Emergency Rail Services Act of 1970, 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 22 of this Act, 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 22(b) of this Act 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, and the provisions of section 3(b)(3) and the last two sentences of section 3(d) of such Act shall not apply to such guarantee. (e) The Secretary shall guarantee trustee certificates of the Milwaukee Railroad pursuant to this section in an amount equal to the difference between (1) the total expenses incurred by such railroad attributable to the maintenance and the continuation of service in accordance with subsection (d) of this section, and (2) the revenues of such railroad. (f) Notwithstanding the provisions of section 3(c) of the Emergency Rail Services Act of 1970, certificates guaranteed under this Act shall be subordinated to the claims of any creditors of the Milwaukee Railroad as of the date of enactment of this Act. (g) The Commission shall immediately make available to the Secretary of Transportation the sum of $10,000,000, out of funds available for directed service under title 49 of the United States Code. The Secretary of Transportation shall immediately make such funds available to the trustee of the Milwaukee Railroad for purposes of financing the operations of the Milwaukee Railroad, beginning November 1, 1979, in accordance with section 22 of this Act.

2. 1980

   Staggers Rail Act of 1980

   Pub. L. 96–448 title VII § 701(c)(1) · 94 Stat. 1895

   Added · 45 U.S.C. § 906(h)

   Pub. L. 96–448 added subsec. (h)

   Source evidence

   Code amendment note
   Subsec. (h). Pub. L. 96–448 added subsec. (h).

   Enacted provision · exact public law section
   (1) Section 7 of the Milwaukee Railroad Restructuring Act (45 U.S.C. 906) is amended by adding at the end thereof the following new subsection: “(h) (1) All obligations to the United States or any agency or instrumentality of the United States incurred pursuant to this section by the Milwaukee Railroad or the trustee of the property of the Milwaukee Railroad shall be waived and canceled when— “(A) the Milwaukee Railroad is reorganized as an operating rail carrier; or “(B) substantially all of the Milwaukee Railroad is purchased. “(2) For purposes of this subsection, substantially all of the Milwaukee Railroad shall be considered as having been purchased when (A) more than 50 percent of the rail system operated by the Milwaukee Railroad on the date of enactment of the Staggers Rail Act of 1980 Ante, p. 1895. has been purchased, and (B) more than 50 percent of the employees employed by the Milwaukee Railroad on such date of enactment have obtained employment with other rail carriers.”.

   Effective date note
   Amendment by Pub. L. 96–448 effective Oct. 14, 1980, see section 710(d) of Pub. L. 96–448, set out as a note under section 1170 of Title 11, Bankruptcy.

2 of 2 references resolved to an enrolled provision