45 U.S.C. § 1112 : US Code - Section 1112: Interstate Commerce Commission proceedings

Search 45 U.S.C. § 1112 : US Code - Section 1112: Interstate Commerce Commission proceedings

(a) Final decisions involving railroads in bankruptcy
Notwithstanding any other provision of subtitle 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 bankruptcy proceeding
under section 77 of the Bankruptcy Act on November 4, 1979, the
Commission shall, with or without a hearing, issue a final decision
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 subtitle 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 received a loan under
section 721(a) of this title, the Commission shall, with or without
a hearing, 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 bankruptcy, liquidation,
abandonment, etc.
(1) If the Secretary determines under subsection (b) of this
section 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 prospective
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 interest 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
contingency notes payable solely from the railroad operating assets
then securing such debt, including reinvestments thereof, or such
other contingency 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 limited 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, liquidation, or
abandonment of the assets of such a railroad than the debt
described in such paragraph as the Secretary and the railroad may
agree.
(3) In carrying out the duties under this subsection, 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 securities currently held by
agencies or instrumentalities of the United States, and (C) accept
in exchange as substitution therefor such instruments evidencing
the indebtedness owed to such agencies or instrumentalities as, in
the Secretary's judgment, will effectuate the purposes of this
subsection.