§838. Columbus and Greenville Railway

(a) Limitation of United States interest

Notwithstanding any other provision of this subchapter, the Secretary shall limit the interest of the United States in any debt of the Columbus and Greenville Railway under sections 825 and 831 of this title to an interest which attaches to such debt in the event of (1) bankruptcy, or (2) substantial sale or liquidation of the assets of the railroad, the proceeds of which are not reinvested in the operations of the railroad. The Secretary may substitute for the evidence of such debt contingency notes payable solely from the railroad operating assets then securing such debt, including reinvestments thereof, or such other contingency notes as the Secretary deems appropriate and which conform to the terms in this section.

(b) Higher priority for new debt

If the interest of the United States is limited under subsection (a) of this section, any new debt issued by such railroad subsequent to the issuance of the debt described in such subsection may have such higher priority in the event of bankruptcy, liquidation, or abandonment of the assets of such a railroad than the debt described in such subsection as the Secretary and railroad may agree.

(Pub. L. 94–210, title V, §518, as added Pub. L. 102–533, §12(a), Oct. 27, 1992, 106 Stat. 3521 .)

Redemption of Obligations and Liabilities

Pub. L. 103–440, title I, §104, Nov. 2, 1994, 108 Stat. 4619 , provided that:

"(a) Redemption of Outstanding Obligations and Liabilities.-Notwithstanding any other provision of law, the Secretary of Transportation, or the Secretary of the Treasury, if a holder of any of the obligations, shall allow the Delta Transportation Company, doing business as the Columbus and Greenville Railway, to redeem the obligations and liabilities of such company which remain outstanding under sections 505 and 511 of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 825 and 831, respectively).

"(b) Value.-For purposes of subsection (a), the value of each of the obligations and liabilities shall be an amount equal to the value established under the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.)."