An Act to authorize the Secretary of Transportation to provide financial assistance to certain railroads in order to preserve essential rail services, and for other purposes
PL 91-663 (H.R.19953), enacted 01/08/1971

84 STAT. ] 
PUBLIC LAW 91-663-JAN. 8, 1971 
1975 
Public Law 91-663 
AN A C T 
January 8, 1971 
To authorize the Secretary of Transportation to provide financial assistance 
[H. R. 19953] 
to certain railroads in order to preserve essential rail services, and for other 
purposes. 
Emergency Rail 
ervices Act of 
Be it enacted hy the Senate and House of Rejyresentatives of the 
United States of America in Congress assembled^ That this Act may g 
be cited as the "Emergency Rail Services Act of 1970". 
1970. 
DEFINITIONS 
SEC. 2. For the purposes of this Act— 
(1) "Secretary" means the Secretary of Transportation. 
(2) "Commission" means the Interstate Commerce Commission. 
(3) "Railroad" means any common carrier by railroad subject to 
part I of the Interstate Commerce Act (49 U.S.C. 1-27). 
24 stat. 379. 
(4) "Certificate" means certificates issued by trustees of a railroad 
pursuant to subsection 77(c) (3) of the Bankruptcy Act, as amended 
(11 U . S . C . 205 ( C ) ( 3 ) ) . 
65 Stat. 606. 
FINANCIAL 
ASSISTANCE 
SEC. 3. (a) The trustees of any railroad undergoing reorganization 
under section 77 of the Bankruptcy Act, as amended (11 U.S.C. 205), ^^ stat. 911. 
upon approval of the court, may apply to the Secretary for the guaran-
tee of certificates. The Secretary, after consultation with the Commis-
sion, is authorized to guarantee such certificates upon findings in 
writing that— 
(1) cessation of essential transportation services by the railroad 
would endanger the public welfare; 
(2) cessation of such services is imminent; 
(3) there is no other practicable means of obtaining funds to 
meet payroll and other expenses necessary to provide such services 
than the issuance of such certificates; 
(4) such certificates cannot be sold without a guarantee; 
(5) the railroad can reasonably be expected to become self-
sustaining; and 
(6) the probable value of the assets of the railroad in the event 
of liquidation provides reasonable protection to the United States. 
The Secretary shall publish notice of his intention to make such 
Publication in 
finding in the Federal Register not less than fifteen days prior to ^'^'^^'"^^ Registe.-
such finding, give interested persons, including agencies of the Federal 
Government, an opportunity to submit written data, views, or argu-
ments (with or without opportunity for oral presentation), and 
give consideration to the relevant matter presented. The Secretary 
for good cause shown and upon a finding that extraordinary circum-
stances warrant doing so may waive the requirements of the preceding 
sentence. 
(b) As a condition to a guarantee, the Secretary, after consultation 
conditions. 
with the Commission, shall require that: 
(1) the proceeds of the sale of certificates guaranteed under 
this Act will be used solely for meeting payroll and other expenses 
which, if not met, would preclude continued provision of essential 
transportation services by the railroad; 
(2) other revenues of the railroad will be used, to the fullest 
extent possible, for such expenses; 
1976 
PUBLIC LAW 91-663-JAN. 8, 1971 
[84 STAT. 
S4 Stat. 905. 
49 u s e 5. 
30 Stat. 544, 
11 use 1 note. 
49 Stat. 922. 
11 use 205. 
Interest rate. 
Limitation. 
(3) proceeds from the sale of assets will be devoted to the fullest 
extent possible to the provision of essential transportation services 
by the railroad; and 
(4) in the event of actual or threatened cessation of essential 
transportation services by the railroad, the Secretary shall have 
the option to procure by purchase or lease trackage rights over the 
lines of the railroad and such equipment as may be necessary to 
provide such services by the Secretary or his assignee, and, in the 
event of a default in the payment of principal or interest as pro-
vided by the certificates, the money paid or expenses incurred by 
the United States as a result thereof shall be deemed to have been 
applied to the purchase or lease price. The terms of purchase or 
lease shall be subject to the approval of the reorganization court 
and the operation over the lines shall be subject to the approval of 
the Commission pursuant to the provisions of section 5 of the 
Interstate Commerce Act, but in no event shall the rendition of 
services by the Secretary or his assignee await the outcome of 
proceedings before the reorganization court or the Commission. 
(c) The Secretary shall not guarantee any certificate unless the 
certificate is treated as an expense of administration and receive the 
highest lien on the railroad's property and priority in payment under 
the Bankruptcy Act. The rights referred to in the last sentence of 
section 77 (j) of the Bankruptcy Act shall in no way be affected by this 
Act. 
(d) A certificate under this Act shall bear interest at such per annum 
rate as the Secretary deems reasonable, taking into account the range 
of interest rates prevailing in the private market for similar loans and 
the risks assumed by the Federal Government; nor may its maturity 
date, including all extensions and renewals thereof, be later than fifteen 
years from the date of original issuance. The Secretary may prescribe 
such other terms and conditions as he deems appropriate. In each case, 
the Secretary shall consider the feasibility of requiring the railroad 
to dispose of nonrailroad assets as a condition to a guarantee. 
(e) At any one time the outstanding aggregate principal amount 
of all certificates guaranteed under this Act shall not exceed 
$125,000,000. 
(f) The Secretary shall issue such rules and regulations as are 
appropriate to carry out the authority granted by this Act. 
ACCESS TO CARRY RECORDS 
SEC. 4. The Secretary is authorized to, and shall as necessary, inspect 
and copy all accounts, books, records, memorandums, correspondence, 
and other documents of any railroad which has received financial 
assistance under this Act concerning any matter which may bear 
upon (1) the ability of such railroad to repay the loan within the 
time fixed therefor, (2) the interest of the United States in the prop-
erty of such railroad, and (3) to insure that the purpose of this Act 
is being carried out. 
AUTHORIZATION TO ISSUE OBLIGATIONS 
SEC. 5. (a) To enable the Secretary to carry out his rights and 
responsibilities under section 3 of this Act, he is authorized to issue 
to the Secretary of the Treasury notes or other obligations in such 
forms and denominations, bearing such maturities, and subject to 
such terms and conditions, as may be prescribed by the Secretary with 
the apj)roval of the Secretary of the Treasury. Such notes or other 
obligations shall bear interest at a rate determined by the Secretary 
40 Stat. 288. 
31 u s e 774. 
84 STAT. ] 
PUBLIC LAW 91-663-JAN. 8, 1971 
1977 
of the Treasury, taking into consideration the current average market 
yield on outstanding marketable obligations of the United States of 
comparable maturities during the month preceding the issuance of 
the notes or other obligations. The Secretary of the Treasury shall 
purchase any notes and other obligations issued hereunder and for 
that purpose he is authorized to use as a public debt transaction the 
E
roceeds from the sale of any securities issued under the Second 
liberty Bond Act, as amended, and the purposes for which securities 
may be issued under that Act, as amended, are extended to include 
any purchase of such notes and obligations. The Secretai*y of the 
Treasury may at any time sell any of the notes or other obligations 
acquired by him under this subsection. All redemptions, purchases, 
and sales by the Secretary of the Treasury of such notes or other 
obligations shall be treated as public debt transactions of the United 
States. There are authorized to be appropriated to the Secretary 
Appropriation,, 
such sums as may be necessary to pay the principal and interest on 
the notes or obligations issued by him to the Secretary of the Treasury. 
(b) Any guarantee made by the Secretary under this Act shall not 
be terminated, canceled, or otherwise revoked, except as provided 
by the terms and conditions prescribed by the Secretary under section 
S(d) of this Act; shall be conclusive evidence that such guarantee 
complies fully with the provisions of this Act, and of the approval 
and legality of the principal amount, interest rate, and all other terms 
of the certificates and the guarantee; and shall be valid and incontest-
able in the hands of a holder of a guaranteed certificate except for 
fraud or material misrepresentation on the part of such holder. 
(c) The Attorney General shall take such action as may be appro-
priate to enforce any right accruing to the United States by reason 
of its having paid money or incurred expenses as a result of making 
such guarantees. 
ASSISTANCE OF DEPARTMENTS AND OTHER AGENCIES 
SEC. 6. (a) In carrying out the provisions of this Act the Secretary 
may use available services and facilities of other departments, agen-
cies, and instrumentalities of the Federal Government with their 
consent and on a reimbursable basis, and shall consult with the Inter-
state Commerce Commission in carrying out the provisions of this Act. 
(b) Departments, agencies, and instrumentalities of the Federal 
Government shall exercise their powers, duties, and functions in such 
manner as will assist in carrying out the provisions of this Act. 
COURT SUPERVISION 
SEC. Y. In addition to other duties prescribed by section 77 of the 
Bankruptcy Act, the court shall maintain supervision of the expendi- '•^ ^'^t- ^n. 
ture of funds obtained pursuant to section 3 for the purpose of assur- 
"u^<^ ^os. 
ing that such funds are used solely for purposes set forth in subsection 
(b) of such section, shall make periodic findings regarding such 
expenditures, and shall report those findings to the Secretary. 
AUDIT 
SEC. 8. The Comptroller General of the United States, or any of his 
duly authorized representatives, shall have access to such information, 
books, records, and documents as he determines necessary effectively to 
audit financial transactions and operations carried out by the Secre-
tary in the administration of this Act. The Comptroller General shall ^ Report to 
make such reports to the Congress on the results of any such audits °"^'^^^^" 
as are appropriate. 
1978 
PUBLIC LAW 91-664-JAN. 8, 1971 
[84 STAT. 
GUARANTEE FEES 
SEC. 9. The Secretary shall prescribe a guarantee fee in connection 
with each loan guaranteed under this Act which shall be collected from 
the railroad upon repayment of the loan guaranteed. Such fee shall 
be in an amount that the Secretary estimates to be necessary to cover 
the administrative costs of carrying out the provisions of this Act with 
respect to such loan. Sums realized from such fees shall be deposited 
in the Treasury as miscellaneous receipts. 
Annual 
reports to 
President 
and Congress 
REPORTS 
SEC. 10. The Secretary shall make an annual report to the President 
and the Congress with respect to his activities pursuant to this Act, 
including an evaluation of the financial conditions of railroads which 
have outstanding certificates guaranteed under this Act. The Secre-
tary shall also make a report to the President and the Congress on the 
financial condition of each railroad having a loan guaranteed under 
this Act ninety days after the making of such guarantee and annually 
thereafter throughout the existence of such loan. 
Approved January 8, 1971. 
Public Law 91-664 
January 8, 1971 
[H. R. 19342] 
Chesapeake and 
Ohio Canal 
Development 
Act. 
AN ACT 
To esteblish and develop the Chesapeake and Ohio Canal National Historical 
Park, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That this Act shall 
be known as the "Chesapeake and Ohio Canal Development Act''. 
DEFINITIONS 
SEC. 2. As used in this Act— 
(a) "Park" means the Chesapeake and Ohio Canal National His-
torical Park, as herein established. 
(b) "Canal" means the Chesapeake and Ohio Canal, including its 
towpath. 
(c) "Secretary" means the Secretary of the Interior. 
(d) "State" means any State, and includes the District of Columbia. 
(e) "Local government" means any political subdivision of a State, 
including a county, municipality, city, town, township, or a school or 
other special district created pursuant to State law. 
(f) "Person" means any individual, partnership, corporation, pri-
vate nonprofit organization, or club. 
(g) "Landowner" means any person, local government, or State 
owning, or on reasonable grounds professing to own, lands or interests 
in lands adjacent to or in the vicinity of the park. 
Boundaries. 
ESTABLISHMENT OF PARK 
SEC. 3. (a) In order to preserve and interpret the historic and 
scenic features of the Chesapeake and Ohio Canal, and to develop 
the potential of the canal for public recreation, including such 
restoration as may be needed, there is hereby established the Chesa-
S
sake and Ohio Canal National Historical Park, in the States of 
aryland and West Virginia and in the District of Columbia. The 
park as initially established shall comprise those particular prop-
erties in Federal ownership, containing approximately five thousand