A bill to amend the Regional Rail Reorganization Act of 1973 to require ConRail to make premium payments under certain medical and life insurance policies, to provide that ConRail shall be entitled to a loan under section 211(h) of such act in an amount required for such premium payments, and to provide that such premium payments shall be deemed to be expenses of administration of the respective railroads in reorganization.
PL 95-597 (H.R.5646), enacted 11/04/1978

PUBLIC LAW 95-597—NOV. 4, 1978 
92 STAT. 2547 
Public Law 95-597 
95th Congress 
An Act 
Nov. 4, 1978 
[H.R. 5646] 
Regional Rail 
Reorganization 
Act of 1973, 
amendment. 
To amend the Regional Rail Reorganization Act of 1973 to require ConRail to 
mak'e premium payments under certain medical and life insurance policies, to 
provide that ConRail shall be entitled to a loan under section 211(h) of such 
Act in an amount required for such premium payments, and to provide that 
such premium payments shall be deemed to be expenses of administration of 
the respective railroads in reorganization. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assemhled^ That paragraph (6) 
of section 303(b) of the Eegional Rail Reorganization Act of 1973 (45 
U.S.C. 743(b) (6)) is amended— 
(1) by redesignating such paragraph (6) as paragraph (6) (A), 
and by redesignating clauses (A) and (B) in the first sentence 
thereof as clauses (i) and (ii), respectively; and 
(2) by adding at the end thereof the following new 
subparagraph: 
"(B) The Corporation shall make such premium payments as may 
be necessary to maintain in effect any medical or life insurance policy 
which was maintained by a railroad in reorganization immediately 
prior to April 1, 1976, and which provides insurance benefits to 
individuals who retired, prior to April 1,1976, from service with such a 
railroad. With respect to any such individual whose medical or life 
insurance coverage lapsed after April 1, 1976, due to nonpayment of 
premiums, the Corporation shall— 
"(i) through the purchase of insurance or otherwise, provide 
medical or life insurance benefits of the same type and at the same 
or approximately the same level as were provided by the employer 
railroad in reorganization and in effect with respect to such indi-
vidual immediately prior to April 1,1976; and 
"(ii) assume and pay any claim for such individual (or his 
personal representative) for any such insurance benefits, if— 
"(I) such claim arose during the period beginning April 1, 
1976, and ending on the date insurance coverage is provided 
pursuant to clause (i) of this subparagraph; and 
"(II) such benefits were not paid by an insurer solely 
because of the lapse of the insurance coverage during such 
period. 
The Corporation shall be entitled to a loan pursuant to section 211(h) 
of this Act in an amount required for the payment of insurance 45 USC 721 
premiums and benefits described in this subparagraph. For purposes 
of section 211(h) (4) (A) (iii), amounts required for the payment of 
such premiums and benefits shall be deemed to be valid administrative 
claims against the respective estates of the railroads in reorganization, 
due and payable as of April 1, 1976, or, in the case of a railroad in 
reorganization which is not subject to a bankruptcy proceeding, such 
amounts shall be deemed to be obligations of such railroad, due and 
payable as of such date, and shall be reimbursable in accordance 
with the procedures set forth in paragraphs (4) and (5) of such 
section 211(h). As used in this subparagraph, the term 'railroad in 
reorganization' includes any railroad which is controlled by a rail-
"Railroad in 
reorganization. 
92 STAT. 2548 
PUBLIC LAW 95-597—NOV. 4, 1978 
road in reorganization but is not itself subject to a bankruptcy 
proceeding, if such railroad conveyed substantially all of its rail prop-
erties to the Corporation pursuant to paragraph (1) of this subsection 
and conducted operations over such rail properties prior to the date 
of such conveyance.", 
45 use 743 note. 
gEC. 2. The conferring of administrative claim status on amounts 
paid for the insurance premiums and benefits described in the amend-
ment made by the first section of this Act shall be effective solely for 
purposes of meeting the conditions set forth in section 211(h) (4) (A) 
45 use 721. 
(iii) of the Regional Rail Reorganization Act of 1973 with respect to 
which obligations of the estate of a railroad in reorganization may be 
paid pursuant to such section 211 (h), and shall not be construed— 
(1) as affecting the jurisdiction of the district court having 
jurisdiction over such a railroad in reorganization to determine 
whether such insurance premiums and benefits constitute enforce-
able contractual obligations of the estate of such a railroad for 
purposes of reimbursement under such section 211 (h); or 
(2) as establishing or reordering any priority which a claim 
against the estate oi such a railroad for reimbursement for the 
amounts paid for such insurance premiums and benefits may or 
may not have under the provisions of the Bankruptcy Act or any 
other law. 
45 use 743 note. 
SEC. 3. Notwithstanding any other provision of law, any corporation 
which, pursuant to a plan of reorganization under section 77 of the 
11 use 205. 
Bankruptcy Act, is the successor in interest to a railroad in reorganiza-
tion shall have standing to assert, in any judicial or administrative 
proceeding, any claim or defense available to such railroad in reorga-
nization with respect to whether the insurance benefits and premiums 
described in the amendment made by the first section of this Act con-
stitute enforceable contractual obligations of the estate of such rail-
road in reorganization. For purposes of this section, the term "railroad 
in reorganization" has the meaning given such term in paragraph (14) 
45 use 702. 
of section 102 of the Regional Rail Reorganization Act of 1973. 
Approved November 4, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-376 (Comm. on Interstate and Foreign Commerce). 
SENATE REPORT No. 95-1041 (eomm. on eommerce. Science, and Transportation). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
Jan. 30, considered and passed House. 
Aug. 2, considered and passed Senate, amended. 
Oct. 11, House concurred in Senate amendment with an amendment. 
Oct. 13, Senate concurred in House amendments.