Sec. 103. Federal Railroad Equipment Obligation Insurance Fund. Sec. 104. Authorization to insure equipment obligations. Sec. 105. Limitations and conditions; premium charges. Sec. 106. Issuance of notes or obligations. Sec. 108. General Accounting Office audit. TITLE II-TO IMPROVE UTILIZATION Sec. 201. National Rolling Stock Information System. Sec. 202. Utilization index and report. Sec. 203. Interstate Commerce Commission report. Sec. 306. Audit and expenditures. Sec. 307. Conversion by public sale of stock. Sec. 308. National Rolling Stock Information Service. Sec. 309. Conditions and charges for use of rolling stock. 12 13 3 (a) to improve the utilization and distribution of rolling stock to meet the needs of commerce, users, shippers, the national defense, and the consuming public; (b) to assist railroads in acquiring additional rolling stock to provide fast and expeditious service to meet the increasing demands of the Nation's economy now and in the years to come; and (c) to assist in achieving full employment by insuring adequate equipment necessary to transport the products of American industry. DEFINITIONS SEC. 102. For the purposes of this Act (1) "Authority" means the Rolling Stock Authority 14 which may also be known as RSA. 15 (2) "Board" means the Federal Railroad Equipment 16 Obligation Insurance Board. 17 (3) “Car-pooling company" means a company that 18 furnishes rolling stock to three or more railroads on a pool19 ing basis. 20 (4) "Directors" means the Board of Directors of the 21 Authority. 22 (5) "Equipment obligations" means bonds, notes, con23 ditional sale agreements, equipment trust certificates, leases, 24 and other obligations issued or guaranteed by railroads or 25 car-pooling companies to finance or refinance rolling stock. 1 4 (6) "Holder" means the holder of an equipment obliga 2 tion, except that where a bank or trust company is acting as 3 agent or trustee for the holder of the equipment obligation, 4 5 the bank or trust company shall be deemed to be the holder. (7) "Obligor" includes the original borrower under an equipment obligation and his successors and assigns approved 7 by the Board. An obligor must be a railroad or car-pooling 6 8 company. 9 10 11 12 (8) "Railroad" means a common carrier by railroad, as defined in section 1 (3) of the Interstate Commerce Act, as amended, and includes, where determined appropriate by the Board, any railroad controlled by a railroad within the 13 meaning of section 1 (3) (b) of the Interstate Commerce 14 Act. 15 (9) "Rolling stock" means any type of new or rebuilt 16 general service railroad freight car whose use is not confined 17 to a specialized purpose by special equipment and design or 18 other limiting features, cabooses, and standard gage locomo19 tives. The Board may designate what types of freight cars 20 are general service freight cars, including, but not limited to, 21 boxcars, gondolas, open top and covered hopper cars, and 22 flatcars. 23 24 tion. (10) "Secretary" means the Secretary of Transporta A 1 2 5 FEDERAL RAILROAD EQUIPMENT OBLIGATION INSURANCE FUND 3 SEC. 103. (a) There is created a Federal Railroad 4 Equipment Obligation Insurance Fund (hereafter in this Act 5 referred to as the "fund") which shall be used by the Board 6 as a revolving fund for the purpose of carrying out sections 7 104 through 107 of this Act. Moneys in the fund shall be deposited in the Treasury of the United States to the credit of the fund or invested in bonds or other obligations of, or guaranteed as to principal and interest by, the United States for the account of the fund. 9 10 11 12 13 (b) The Federal Railroad Equipment Obligation Insurance Board shall have seven members, of whom one shall be 14 elected annually by the Board to serve as Chairman. The 15 Secretary of Transportation and the Secretary of the Treas16 ury, or persons designated by them respectively in writing, 17 shall serve as ex officio members of the Board with the same 18 powers as other members of the Board. The President of the 19 United States shall, within ninety days after enactment of 20 this Act, appoint the remaining members of the Board, by 21 and with the advice and consent of the Senate, on the follow22 ing basis: (1) three, to be selected from recommendations of 23 organizations of shippers who shall be representative of dif24 ferent, major shipping interests, including small shippers: 25 (2) one, to be selected from recommendations of organiza 30-333 O 74 17 6 1 tions of consumers; and (3) one, to be selected from recom 2 mendations of the national organization of State Commissions 3 as referred to in sections 202 (b) and 205 (f) of the Inter4 state Commerce Act, who shall be a member of a State 5 agency authorized by State law to fix rates for transportation 6 by railroad. Each of the members appointed by the President 7 may receive compensation at a rate not to exceed $300 for 8 each meeting of the Board which he attends and shall be re9 imbursed for necessary travel and subsistence expense in10 curred in attending such meetings. AUTHORIZATION TO INSURE EQUIPMENT OBLIGATIONS 12 SEC. 104. (a) Upon application by a railroad or car13 pooling company, the Board is authorized to insure the inter14 est on, and the unpaid principal balance of, any equipment 15 obligation offered to it which it determines is eligible for 16 insurance under this Act. The Board also may make com17 mitments to insure any equipment obligation prior to the 18 date of execution or disbursement thereon. Such insurance 19 and commitments shall be extended in such form, on such 2 2 2 terms and conditions, and pursuant to such regulations, as 21 the Board considers appropriate and which are not incon 22 sistent with the provisions of this Act. 23 (b) Each insurance contract made under this section 24 shall run to and be for the benefit of the holder of the equip25 ment obligation. 5 |