### §22106. Limitations on financial assistance

(a) Grants and Loans.—A State shall use financial assistance for projects under this chapter to make a grant or lend money to the owner of rail property, or a rail carrier providing rail transportation, related to a project being assisted.

(b) State Use of Repaid Funds and Contingent Interest Recoveries.—The State shall place the United States Government's share of money that is repaid and any contingent interest that is recovered in an interest-bearing account. The repaid money, contingent interest, and any interest thereon shall be considered to be State funds. The State shall use such funds to make other grants and loans, consistent with the purposes for which financial assistance may be used under subsection (a), as the State considers to be appropriate.

(c) Encouraging Participation.—To the maximum extent possible, the State shall encourage the participation of shippers, rail carriers, and local communities in paying the State share of assistance costs.

(Pub. L. 103–272, §1(e), July 5, 1994, 108 Stat. 897; Pub. L. 104–287, §5(55), Oct. 11, 1996, 110 Stat. 3393; Pub. L. 110–432, div. A, title VII, §701(a), Oct. 16, 2008, 122 Stat. 4905; Pub. L. 114–94, div. A, title XI, §11316(k), Dec. 4, 2015, 129 Stat. 1678.)

| Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
| --- | --- | --- |
| 22106(a) | 49 App.:1654(d)(1), (2). | Oct. 15, 1966, Pub. L. 89–670, 80 Stat. 931, §5(d), (i); added Feb. 5, 1976, Pub. L. 94–210, §803, 90 Stat. 130; Nov. 8, 1978, Pub. L. 95–607, §§102–106(a), 107– 109(a), 92 Stat. 3059, 3062; Oct. 12, 1979, Pub. L. 96–86, §115(b), 93 Stat. 662; Aug. 13, 1981, Pub. L. 97–35, §§1191, 1192, 95 Stat. 699; Jan. 14, 1983, Pub. L. 97–468, §501, 96 Stat. 2551; Apr. 7, 1986, Pub. L. 99–272, §4018, 100 Stat. 111; restated Dec. 11, 1989, Pub. L. 101–213, §2(a), (c), 103 Stat. 1843, 1845, 1847. |
| 22106(b) | 49 App.:1654(d)(3) (1st, 2d sentences). | |
| 22106(c) | 49 App.:1654(d)(3) (3d, last sentences). | |
| 22106(d) | 49 App.:1654(d)(4). | |
| 22106(e) | 49 App.:1654(i). | |

Section

In subsection (a), the words "financial assistance for projects under this chapter" are substituted for "assistance provided under subsection (b) of this section" for clarity. The words "rail carrier providing rail transportation" are substituted for "operator of rail service" for consistency in the revised title. The word "conditions" is omitted as being included in "terms". The words "Secretary of the Treasury" are substituted for "Department of the Treasury" because of 31:301(b).

In subsection (b), the words "in the same manner and under the same conditions as if they were originally granted to the State by the Secretary" are omitted as unnecessary.

In subsection (e)(2), the words "assistance under this chapter" are substituted for "Federal assistance" for clarity and consistency in this chapter.

#### Pub. L. 104–287

This amends 49:22106(b) to clarify the restatement of 49 App.:1654(d)(3) by section 1 of the Act of July 5, 1994 (Public Law 103–272, 108 Stat. 897).

#### **Editorial Notes**

#### Amendments

2015—Subsec. (b). Pub. L. 114–94 substituted "interest thereon" for "interest thereof".

2008—Subsec. (a). Pub. L. 110–432, §701(a)(1), struck out last sentence which read as follows: "The State shall decide on the financial terms of the grant or loan, except that the time for making grant advances shall comply with regulations of the Secretary of the Treasury."

Subsec. (b). Pub. L. 110–432, §701(a)(2), added subsec. (b) and struck out former subsec. (b). Prior to amendment, text read as follows: "The State shall place the United States Government's share of money that is repaid in an interest-bearing account. However, the Secretary of Transportation may allow a borrower to place that money, for the benefit of the State, in a bank designated by the Secretary of the Treasury under section 10 of the Act of June 11, 1942 (12 U.S.C. 265). The State shall use the money and accumulated interest to make other grants and loans under this chapter in the same manner and under the same conditions as if they were originally granted to the State by the Secretary of Transportation."

Subsecs. (c), (d). Pub. L. 110–432, §701(a)(3), redesignated subsec. (d) as (c) and struck out former subsec. (c). Text of former subsec. (c) read as follows: "The State may pay the Secretary of Transportation the Government's share of unused money and accumulated interest at any time. However, the State must pay the unused money and accumulated interest to the Secretary when the State ends its participation under this chapter."

Subsec. (e). Pub. L. 110–432, §701(a)(3), struck out subsec. (e). Text read as follows: "Each State shall retain a contingent interest (redeemable preference shares) for the Government's share of amounts in a rail line receiving assistance under this chapter. The State may collect its share of the amounts used for the rail line if—

"(1) an application for abandonment of the rail line is filed under chapter 109 of this title; or

"(2) the rail line is sold or disposed of after it has received assistance under this chapter."

1996—Subsec. (b). Pub. L. 104–287 inserted "in the same manner and under the same conditions as if they were originally granted to the State by the Secretary of Transportation" after "under this chapter".

#### **Statutory Notes and Related Subsidiaries**

#### Effective Date of 2015 Amendment

Amendment by Pub. L. 114–94 effective Oct. 1, 2015, see section 1003 of Pub. L. 114–94, set out as a note under section 5313 of Title 5, Government Organization and Employees.

#### Effective Date of 1996 Amendment

Amendment by Pub. L. 104–287 effective July 5, 1994, see section 8(1) of Pub. L. 104–287, set out as a note under section 5303 of this title.