1. U.S. Code
  2. title 45
  3. chapter 15
  4. § 667

Collapse to view only § 667. Audit by Comptroller General; report to Congress

§ 661. Definitions
For the purposes of this chapter—
(1) “Secretary” means the Secretary of Transportation.
(2) “Board” means the Surface Transportation Board.
(3) “Railroad” means any rail carrier subject to part A of subtitle IV of title 49.
(4) “Certificate” means certificates issued by trustees of a railroad pursuant to subsection 77(c)(3) of the Bankruptcy Act, as amended.
(Pub. L. 91–663, § 2, Jan. 8, 1971, 84 Stat. 1975; Pub. L. 104–88, title III, § 325(1), Dec. 29, 1995, 109 Stat. 951.)

CITE AS: 45 USC 661

§ 662. Guarantee of certificates
(a) Authority of Secretary; prerequisites; procedures; waiver
The trustees of any railroad undergoing reorganization under section 77 of the Bankruptcy Act, as amended, upon approval of the court, may apply to the Secretary for the guarantee of certificates. The Secretary, after consultation with the Board, 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 finding in the Federal Register not less than fifteen days prior to such finding, give interested persons, including agencies of the Federal Government, an opportunity to submit written data, views, or arguments (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 circumstances warrant doing so may waive the requirements of the preceding sentence. Notwithstanding any other provision of this section, the Secretary, in guaranteeing certificates under this section, is authorized to waive the findings required by paragraphs (1), (5), and (6) of this subsection.
(b) Conditions to guarantee
As a condition to a guarantee, the Secretary, after consultation with the Board, shall require that:
(1) the proceeds of the sale of certificates guaranteed under this chapter, 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;
(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 provided 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 Board pursuant to subchapter II of chapter 113 of title 49, 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 Board.
(c) Certificate as administrative expense; priority of certificate
(d) Interest rate; date of maturity; other terms and conditions
(e) Maximum aggregate principal amount outstanding
(f) Rules and regulations
(Pub. L. 91–663, § 3, Jan. 8, 1971, 84 Stat. 1975; Pub. L. 95–598, title III, § 333, Nov. 6, 1978, 92 Stat. 2679; Pub. L. 95–611, § 3(b), Nov. 8, 1978, 92 Stat. 3089; Pub. L. 96–86, § 115(a), Oct. 12, 1979, 93 Stat. 662; Pub. L. 96–101, § 7(a)–(c), Nov. 4, 1979, 93 Stat. 739, 740; Pub. L. 104–88, title III, § 325(2), Dec. 29, 1995, 109 Stat. 951.)

CITE AS: 45 USC 662

§ 663. Inspection of accounts, books, etc., of railroad receiving financial assistance

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 chapter 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 property of such railroad, and (3) to insure that the purpose of this chapter is being carried out.

(Pub. L. 91–663, § 4, Jan. 8, 1971, 84 Stat. 1976.)

CITE AS: 45 USC 663

§ 664. Issuance of obligations to Secretary of the Treasury
(a) Forms and denominations; maturity dates; terms and conditions; interest rate; purchase and sale of obligations by Secretary of the Treasury; authorization of appropriations
(b) Revocation of guarantee; legal effect of guarantee; validity and incontestability of guaranteed certificate
(c) Enforcement by Attorney General of rights accruing to United States because of guarantee
(Pub. L. 91–663, § 5, Jan. 8, 1971, 84 Stat. 1976.)

CITE AS: 45 USC 664

§ 665. Utilization of services and facilities of Federal departments and agencies; reimbursement; consultation with Board; coordination of activities with Federal departments and agencies
(a) In carrying out the provisions of this chapter the Secretary may use available services and facilities of other departments, agencies, and instrumentalities of the Federal Government with their consent and on a reimbursable basis, and shall consult with the Board in carrying out the provisions of this chapter.
(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 chapter.
(

CITE AS: 45 USC 665

§ 666. Court supervision of expenditures; findings; report to Secretary

In addition to other duties prescribed by section 77 of the Bankruptcy Act, the court shall maintain supervision of the expenditure of funds obtained pursuant to section 662 of this title for the purpose of assuring 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.

(Pub. L. 91–663, § 7, Jan. 8, 1971, 84 Stat. 1977.)

CITE AS: 45 USC 666

§ 667. Audit by Comptroller General; report to Congress

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 Secretary in the administration of this chapter. The Comptroller General shall make such reports to the Congress on the results of any such audits as are appropriate.

(Pub. L. 91–663, § 8, Jan. 8, 1971, 84 Stat. 1977.)

CITE AS: 45 USC 667

§ 668. Guarantee fees; amount; deposit

The Secretary shall prescribe a guarantee fee in connection with each loan guaranteed under this chapter 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 chapter with respect to such loan. Sums realized from such fees shall be deposited in the Treasury as miscellaneous receipts.

(Pub. L. 91–663, § 9, Jan. 8, 1971, 84 Stat. 1978.)

CITE AS: 45 USC 668

§ 669. Repealed. Pub. L. 97–375, title I, § 111(e), Dec. 21, 1982, 96 Stat. 1821

CITE AS: 45 USC 669