Summary: S.2406 — 94th Congress (1975-1976)All Information (Except Text)

There is one summary for S.2406. Bill summaries are authored by CRS.

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Introduced in Senate (09/24/1975)

Second Regional Rail Reorganization Act Amendments - States that the Board of Directors of the U.S. Railway Association shall have a Government Investment Committee, vested with the exclusive power to: (1) exercise or decline to exercise, as provided in the final system plan, the rights of the Association as holder of any securities of the Consolidated Rail Corporation issued to the Association; (2) make the affirmative findings and exercise any exclusive powers, as expressly provided in this Act; and (3) exercise the authority expressly conferred on it under this Act.

Reduces by $1,000,000,000 the aggregate amount of the obligations of the Association which may be outstanding at any one time.

Directs the Association to purchase debentures and series A preferred stock of the Corporation, at such times and in such amounts as may be requested by the Corporation, to provide for the modernization, rehabitation, and maintenance of rail properties; for the acquisition of equipment; for the refinancing of indebtedness; or to provide working capital as contemplated by the final system plan. Sets forth terms and conditions governing such purchases.

Authorizes appropriations to the Association of $2,100,000,000 to be used for the purchase of securities of the Corporation in accordance with this Act.

Authorizes the Corporation to issue debentures, series A preferred stock, series B preferred stock, common stock, and other securities.

Directs the Secretary of Transportation to provide financial assistance in the form of grants or loans to, or by the acquisition of securities of (1) the Corporation or other railroads, any State or local or regional transportation authority, or any other responsible person, for the purpose of facilitating the implementation of a supplementary transaction, and (2) the Corporation for the purpose of supplementary assistance.

Enumerates the terms, conditions, and prerequisites for such assistance. States the policy of Congress that such terms must furnish reasonable assurance that any borrower will be able to repay the loans within the time fixed. Authorizes appropriations to the Secretary of $400,000,000 to provide such assistance.

Permits discretionary representation by the United States on behalf of profitable railroads in instances where it appears that a judgment against such profitable railroad might be reached.

Authorizes implementation of supplementary agreements and transactions when it is determined that they would promote the establishment and retention of a financially self-sustaining rail service system in the region adequate to meet the regions' needs. Directs the Association to analyze each proposed supplementary transaction to determine whether it is in the public interest and is fair and equitable. States that if the opinions of the Secretary and the Association are not in agreement as to whether a proposal is fair and equitable, the Secretary may petition for a hearing before a special court. Sets forth procedures governing such hearings. States that all injunctive, declaratory, or enforcement actions under this Act shall be within the exclusive jurisdiction of the special court.

Authorizes appropriations of up to $40,000,000 to meet the costs of the administrative functions of the Association.