45 U.S.C. § 906 : US Code - Section 906: Guarantee of trustee certificates

Search 45 U.S.C. § 906 : US Code - Section 906: Guarantee of trustee certificates

(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 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, 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 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)], and the provisions of section 3(b)(3) [45 U.S.C.
662(b)(3)] and the last two sentences of section 3(d) of such Act
[45 U.S.C. 662(d)] shall not apply to such guarantee.
(e) Amount of guarantee
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) Subordination of claims
Notwithstanding the provisions of section 3(c) of the Emergency
Rail Services Act of 1970 [45 U.S.C. 662(c)], certificates
guaranteed under this chapter shall be subordinated to the claims
of any creditors of the Milwaukee Railroad as of November 4, 1979.
(g) Availability of funds
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. 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 920 of this title.
(h) Cancellation of United States obligations
(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 October 14, 1980, has been purchased, and (B)
more than 50 percent of the employees employed by the Milwaukee
Railroad on October 14, 1980, have obtained employment with other
rail carriers.