II

104TH CONGRESS

1ST SESSION S. 920

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

IN THE SENATE OF THE UNITED STATES

JUNE 14 (legislative day, JUNE 5), 1995

Mr. PRESSLER introduced the following bill; which was read twice and referred

to the Committee on Commerce, Science, and Transportation

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—

10 (1) by striking out so much of subsection (a) as

11 precedes paragraph (2) and inserting the following:
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1 ‘‘(a) IN GENERAL.—(1) There is authorized to be ap2 propriated to the Secretary of Transportation to carry out

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

4 ending September 30, 1996, and for each subsequent fis5 cal year.’’; and

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

7 SEC. 3. DISASTER FUNDING FOR RAILROADS.

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

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

10 inserting after subsection (c) the following:

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

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

13 has occurred and that it is necessary to repair and

14 rebuild rail lines damaged as a result of such disas15 ter. If the Secretary makes the declaration under

16 this paragraph, the Secretary may—

17 ‘‘(A) waive the requirements of this sec18 tion; and

19 ‘‘(B) prescribe the form and time for appli20 cations for assistance made available herein.

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

22 under this subsection unless emergency disaster re23 lief funds are appropriated for that purpose.

24 ‘‘(3) Funds provided for under this subsection

25 shall remain available until extended.’’.
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1 SEC. 4. DECLARATION OF POLICY.

2 Section 101(a) of the Railroad Revitalization and

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

4 amended to read as follows:

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

6 of, light density lines that are necessary to continued

7 employment and community well-being throughout

8 the United States;’’.

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

10 INTEREST.

11 Section 511(f) of the Railroad Revitalization and

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

13 amended by striking ‘‘shall not exceed an annual percent14 age rate which the Secretary determines to be reasonable,

15 taking into consideration the prevailing interest rates for

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

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

18 rate charged equivalent to the cost of money to Govern19 ment.’’.

20 SEC. 6. RAILROAD LOAN GUARANTEES; MINIMUM REPAY21 MENT PERIOD AND PREPAYMENT PEN22 ALTIES.

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

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

25 amended to read as follows:
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1 ‘‘(2) payment of the obligation is required by its

2 terms to be made not less than 15 years nor more

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

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

5 SEC. 7. RAILROAD LOANS GUARANTEES; DETERMINATION

6 OF REPAYABILITY.

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

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

9 amended to read as follows:

10 ‘‘(5) either the loan can reasonably be repaid by

11 the applicant or the loan is collaterallized at no more

12 than the current value of assets being financed

13 under this section to provide protection to the

14 United States;’’.

15 SEC. 8. RAILROAD LOANS GUARANTEES; RIGHTS OF SEC16 RETARY.

17 Section 511(i) of the Railroad Revitalization and

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

19 amended by adding at the end the following:

20 ‘‘(4) The Secretary shall not require, as a con21 dition for guarantee of an obligation, that all pre22 existing secured obligations of an obligor be subordi23 nated to the rights of the Secretary in the event of

24 a default.’’.

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