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104TH CONGRESS

1ST SESSION H. R. 2205

To assist in the preservation of rail infrastructure, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 4, 1995

Mr. CLEMENT (for himself, Mr. BACHUS, Mr. LIPINSKI, Mr. BOEHLERT, Mr.

RAHALL, Mr. OBERSTAR, Mr. HEFNER, Mr. BARRETT of Nebraska, Ms.

KAPTUR, Mr. HOUGHTON, Mr. MONTGOMERY, and Mr. GORDON) introduced the following bill; which was referred to the Committee on Transportation and Infrastructure

A BILL

To assist in the preservation of rail infrastructure, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Rail Infrastructure

5 Preservation Act of 1995’’.

6 SEC. 2. LOCAL RAIL FREIGHT ASSISTANCE; AUTHORIZA7 TION OF APPROPRIATIONS.

8 Section 22108 of title 49, United States Code, is

9 amended—
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1 (1) by striking out so much of subsection (a) as

2 precedes paragraph (2) and inserting the following:

3 ‘‘(a) GENERAL.—(1) There is authorized to be appro4 priated to the Secretary of Transportation to carry out

5 this chapter the sum of $25,000,000 for the fiscal year

6 ending September 30, 1996, and for each subsequent fis7 cal year.’’; and

8 (2) by striking subsection (a)(3).

9 SEC. 3. DISASTER FUNDING FOR RAILROADS.

10 Section 22101 of title 49, United States Code, is

11 amended by redesignating subsection (d) as (e), and by

12 inserting after subsection (c) the following:

13 ‘‘(d) DISASTER FUNDING FOR RAILROADS.—

14 ‘‘(1) The Secretary may declare that a disaster

15 has occurred and that it is necessary to repair and

16 rebuild rail lines damaged as a result of such disas17 ter. If the Secretary makes the declaration under

18 this paragraph, the Secretary may—

19 ‘‘(A) waive the requirements of this sec20 tion; and

21 ‘‘(B) prescribe the form and time for appli22 cations for assistance made available herein.

23 ‘‘(2) The Secretary may not provide assistance

24 under this subsection unless emergency disaster re25 lief funds are appropriated for that purpose.
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1 ‘‘(3) Funds provided for under this subsection

2 shall remain available until extended.’’.

3 SEC. 4. DECLARATION OF POLICY.

4 Section 101(a) of the Railroad Revitalization and

5 Regulatory Reform Act of 1976 (45 U.S.C. 801(a)(4)) is

6 amended to read as follows:

7 ‘‘(4) continuation of service on, or preservation

8 of, light density lines that are necessary to continued

9 employment and community well-being throughout

10 the United States;’’.

11 SEC. 5. RAILROAD LOAN GUARANTEES; MAXIMUM RATE OF

12 INTEREST.

13 Section 511(f) of the Railroad Revitalization and

14 Regulatory Reform Act of 1976 (45 U.S.C. 831(f)) is

15 amended by striking ‘‘shall not exceed an annual percent16 age rate which the Secretary determines to be reasonable,

17 taking into consideration the prevailing interest rates for

18 similar obligations in the private market.’’ and inserting

19 in lieu thereof ‘‘shall not exceed the annual percentage

20 rate charged equivalent to the cost of money to the United

21 States.’’.
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1 SEC. 6. RAILROAD LOAN GUARANTEES; MINIMUM REPAY2 MENT PERIOD AND PREPAYMENT PEN3 ALTIES.

4 Section 511(g)(2) of the Railroad Revitalization and

5 Regulatory Reform Act of 1976 (45 U.S.C. 831(g)(2)) is

6 amended to read as follows:

7 ‘‘(2) payment of the obligation is required by its

8 terms to be made not less than 15 years not more

9 than 25 years from the date of its execution, with

10 no penalty imposed for prepayment after 5 years;’’.

11 SEC. 7. RAILROAD LOANS GUARANTEES; DETERMINATION

12 OF REPAYABILITY.

13 Section 511(g)(5) of the Railroad Revitalization and

14 Regulatory Reform Act of 1976 (45 U.S.C. 831(g)(5)) is

15 amended to read as follows:

16 ‘‘(5) either the loan can reasonably be repaid

17 by the applicant or the loan is collaterallized at no

18 more than the current value of assets being financed

19 under this section to provide protection to the

20 United States;’’.

21 SEC. 8. RAILROAD LOANS GUARANTEES; RIGHTS OF

22 SECRETARY.

23 Section 511(i) of the Railroad Revitalization and

24 Regulatory Reform Act of 1976 (45 U.S.C. 831(i)) is

25 amended by adding at the end the following:
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1 ‘‘(4) The Secretary shall not require, as a con2 dition for guarantee of an obligation, that all pre3 existing secured obligations of an obligor be subordi4 nated to the rights of the Secretary in the event of

5 a default.’’.

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