1. U.S. Code
  2. title 45
  3. chapter 22
  4. subchapter II
  5. part C
  6. § 1342

Collapse to view only § 1342. Exemption from liability

§ 1341. Abolition of United States Railway Association
(a) Abolition and termination
(1) Effective April 1, 1987, the United States Railway Association is abolished.
(2) On January 1, 1987, all powers, duties, rights, and obligations of such association relating to the Corporation under the Regional Rail Reorganization Act of 1973 (45 U.S.C. 701 et seq.) shall be transferred to the Secretary of Transportation.
(3) The sole function of the United States Railway Association after January 1, 1987, shall be the termination of its affairs and the liquidation of its assets.
(b) Transfer of securities and responsibilities
(1) Any securities of the Corporation held by the United States Railway Association shall, upon 1
1 So in original. Probably should be “on”.
October 21, 1986, be transferred to the Secretary of Transportation.
(2) If, on the date the United States Railway Association is abolished under subsection (a), such association shall not have completed the termination of its affairs and the liquidation of its assets, the duty of completing such winding up of its affairs and liquidation shall be transferred to the Secretary of Transportation, who for such purposes shall succeed to all remaining powers, duties, rights, and obligations of such association.
(c) Financing agreement
(1) On January 1, 1987, the Amended and Restated Financing Agreement, dated May 10, 1979, between the United States Railway Association and the Corporation, together with any and all rights and obligations of or on behalf of any person with respect to such agreement, shall terminate and be of no further force or effect, except for those provisions specifying terms and conditions for payments made to the United States with respect to debentures, preferred stock, and contingent interest notes.
(2) Effective as of the sale date, those provisions of the Financing Agreement referred to in paragraph (1) shall terminate.
(Pub. L. 99–509, title IV, § 4031, Oct. 21, 1986, 100 Stat. 1906.)

CITE AS: 45 USC 1341

§ 1342. Exemption from liability
(a) In general
(b) Exception
(Pub. L. 99–509, title IV, § 4034, Oct. 21, 1986, 100 Stat. 1909.)

CITE AS: 45 USC 1342

§ 1343. Charter amendment

Within 60 days after October 21, 1986, the Corporation shall amend its Articles of Incorporation to contain the following provision, which provision shall not be subject to amendment or repeal:

“It shall be a fundamental purpose of the Corporation to maintain continued rail service in its service area.”.

(Pub. L. 99–509, title IV, § 4035, Oct. 21, 1986, 100 Stat. 1909.)

CITE AS: 45 USC 1343

§ 1344. Status of Conrail after sale

The Corporation shall be a rail carrier as defined in section 10102 of title 49, notwithstanding this subchapter.

(Pub. L. 99–509, title IV, § 4036, Oct. 21, 1986, 100 Stat. 1909; Pub. L. 104–88, title III, § 332, Dec. 29, 1995, 109 Stat. 953.)

CITE AS: 45 USC 1344

§ 1345. Effect on contracts

Nothing in this subchapter shall affect any obligation of the Corporation to carry out its transportation contracts and equipment leases, equipment trusts, and conditional sales agreements, in accordance with their terms.

(Pub. L. 99–509, title IV, § 4037, Oct. 21, 1986, 100 Stat. 1909.)

CITE AS: 45 USC 1345

§ 1346. Resolution of certain issues
(a) Employee issues
Section 4024 completely and finally—
(1) extinguishes all employee rights, and any obligation of the United States, under section 761(e) 1
1 See References in Text note below.
of this title as in effect immediately before October 21, 1986;
(2) resolves any and all claims against the Corporation or any other person arising under the Definitive Agreement referred to in section 4024(d)(1) or any other agreement containing similar terms and conditions;
(3) resolves all claims to pay entitlements arising out of the pay increase deferrals by present and former employees of the Corporation under the Agreement of May 5, 1981, between Conrail and Certain Labor Organizations for Labor Contributions to Self-Sufficiency for Conrail;
(4) resolves all issues raised by notices served by representatives of such employees under section 156 of this title proposing repayment of or compensation for such deferrals; and
(5) resolves all claims against the Railway Labor Executives’ Association or the Corporation by any adviser, consultant, or other person who has provided services to such association in connection with any matter referred to in this subchapter.
(b) Corporation actions
(c) Right to sue withdrawn
(Pub. L. 99–509, title IV, § 4038, Oct. 21, 1986, 100 Stat. 1909.)

CITE AS: 45 USC 1346

§ 1347. Tax treatment of Conrail public sale
(a) Treatment as new corporation
(1) In general
(2) Allocation among assets
(3) Deemed purchase price
For purposes of this subsection, the deemed purchase price is an amount equal to the gross amount received pursuant to the public sale, multiplied by a fraction—
(A) the numerator of which is 100 percent, and
(B) the denominator of which is the percentage (by value) of the stock of Conrail sold in the public sale.
The amount determined under the preceding sentence shall be adjusted under regulations prescribed by the Secretary for liabilities of Conrail and other relevant items.
(b) No income from cancellation of debt or preferred stock
(c) Disallowance of certain deductions
(d) Waiver of certain employee stock ownership plan provisions
For purposes of determining whether the employee stock ownership plans of Conrail meet the qualifications of sections 401 and 501 of title 26—
(1) the limits of section 415 of such title (relating to limitations on benefits and contributions under qualified plans) shall not apply with respect to interests in stock transferred pursuant to this Act or a law heretofore enacted, and
(2) the 2-year waiting period for withdrawals shall not apply to withdrawals of amounts (or shares) in participants accounts in connection with the public sale.
(e) Definitions
For purposes of this section—
(1) Conrail
(2) Public sale
(3) Secretary
(Pub. L. 99–509, title VIII, § 8021, Oct. 21, 1986, 100 Stat. 1954; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095.)

CITE AS: 45 USC 1347