§827. Fund anticipation notes

(a) General

The Secretary shall, until September 30, 1985, issue and sell, and the Secretary of the Treasury until such date shall, to the extent of appropriated funds, purchase Fund anticipation notes in an aggregate principal amount of not more than $1,400,000,000, in order to provide financial assistance to railroads ¹ employee or employee-shipper groups for such financing needs as the Secretary approves.

(b) Terms of issue

Fund anticipation notes shall be issued in denominations of $100,000 (or any integral multiple thereof), upon such terms and conditions, with such maturities, such rates of interest, if any, and such redemption premiums, if any, as the Secretary in his sole discretion may determine. The date of maturity of each Fund anticipation note may not exceed 7 years from the date of its issuance.

(c) Redemption

If the Congress, following its receipt of the recommendations of the Secretary pursuant to section 824(d) of this title (with respect to the amount of facilities rehabilitation and improvement financing which should be effected through the Fund and the method of long-term public sector funding therefor) authorizes the issuance of Fund bonds, the Secretary shall redeem the Fund anticipation notes then outstanding, in such manner, and over such period of time, as the Secretary shall determine, from the proceeds of the sale of such Fund bonds and from such other public sector moneys as have been appropriated to the Fund.

(d) Remittance and termination

If the Congress does not, on or before September 30, 1985, enact legislation of the type referred to in subsection (c) of this section, the Secretary shall hold in trust all redeemable preference shares issued by railroads ¹ employee or employee-shipper groups which are held in the Fund, and the Fund shall thereupon terminate.

( Pub. L. 94–210, title V, §507, Feb. 5, 1976, 90 Stat. 74 ; Pub. L. 95–607, title III, §301(b), Nov. 8, 1978, 92 Stat. 3066 ; Pub. L. 96–73, title IV, §401, Sept. 29, 1979, 93 Stat. 557 ; Pub. L. 96–448, title IV, §§404, 405(a)(2), (c)(3)(B), Oct. 14, 1980, 94 Stat. 1945 , 1946; Pub. L. 97–468, title IV, §401, Jan. 14, 1983, 96 Stat. 2550 .)

Amendments

1983-Subsecs. (a), (d). Pub. L. 97–468 substituted "1985" for "1982".

1980-Subsec. (a). Pub. L. 96–448, §§404, 405(a)(2), (c)(3)(B), substituted "1982" for "1980" and "$1,400,000,000" for "$600,000,000", and inserted "employee or employee-shipper groups" after "railroads".

Subsec. (d). Pub. L. 96–448, §§404, 405(c)(3)(B), substituted "1982" for "1980" and inserted "employee or employee-shipper groups" after "railroads".

1979-Subsecs. (a), (d). Pub. L. 96–73 substituted "1980" for "1979".

1978-Subsecs. (a), (d). Pub. L. 95–607 substituted "1979" for "1978".

Effective Date of 1980 Amendment

Amendment by Pub. L. 96–448 effective Oct. 1, 1980, see section 710(a) of Pub. L. 96–448, set out as a note under section 10101 of Title 49, Transportation.

Effective Date of 1979 Amendment

Amendment by Pub. L. 96–73 effective Oct. 1, 1979, see section 501(a) of Pub. L. 96–73.

Redeemable Preference Shares

Pub. L. 99–349, title I, July 2, 1986, 100 Stat. 745 , provided that: "Notwithstanding any other provision of law, the Secretary of Transportation shall, until September 30, 1988, issue and sell, and the Secretary of the Treasury until such date shall purchase, Fund anticipation notes, and the Secretary of Transportation is hereby authorized to expend for uses authorized for the Railroad Rehabilitation and Improvement Fund proceeds from the sale of such Fund anticipation notes and any other moneys deposited in the Fund after September 30, 1985, pursuant to sections 502, 505–507, and 509 of the Railroad Revitalization and Regulatory Reform Act of 1976 (Public Law 94–210), as amended [sections 822, 825, 826, 827, and 829 of this title], and section 803 of Public Law 95–620 [amending sections 821, 822, and 825 of this title and enacting a provision set out as a note under section 822 of this title], in amounts not to exceed $33,500,000." Similar provisions were contained in the following prior appropriation acts:

Pub. L. 99–190, §101(e) [title I], Dec. 19, 1985, 99 Stat. 1267 , 1280.

Pub. L. 98–473, title I, §101(i) [title I], Oct. 12, 1984, 98 Stat. 1944 , 1956.

Pub. L. 98–78, title I, Aug. 15, 1983, 97 Stat. 465 .

Pub. L. 97–369, title I, Dec. 18, 1982, 96 Stat. 1775 .

Pub. L. 97–102, title I, Dec. 23, 1981, 95 Stat. 1452 .

Section Referred to in Other Sections

This section is referred to in sections 822, 828 of this title.

¹ So in original. Probably should be followed by "or".