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1 (c) The aggregate unpaid principal amount of equip2 ment obligations insured under this title shall not exceed 3 $2,000,000,000 at any one time.

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(d) Each equipment obligation insured under this sec5 tion shall bear interest (exclusive of premium charges for 6 insurance and service charges) at a rate not to exceed such 7 per centum per annum on the principal obligation outstanding which the Board determines to be reasonable, taking into 9 account the range of interest rates prevailing in the private market for similar obligations.

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(e) Upon receipt of an application from a railroad or 12 car-pooling company, the Board shall publish notice of the receipt of such application in the Federal Register and shall afford interested parties an opportunity to submit comments in accordance with the provisions of section 553 of title 5 of the United States Code.

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LIMITATIONS AND CONDITIONS; PREMIUM CHARGES

SEC. 105. (a) Before insuring any equipment obligation 19 under section 105 of this Act, the Board shall find in writing 20 that

(1) the equipment obligation is secured by rolling

stock to be financed or refinanced thereby;

(2) the terms of the equipment obligation require full payment within fifteen years from the date thereof;

(3) the financing or refinancing of the rolling stock

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is justified by the present and future demand for transportation services to be rendered by the railroad or carpooling company for which the rolling stock is procured;

(4) the common carrier operations of the railroad or car-pooling company are sufficiently efficient at the date of any such financing or refinancing to assure eco

nomic utilization of any rolling stock in which the obligor then has a beneficial interest or in which the obligor may obtain such an interest as a consequence of such financing or refinancing;

(5) the purchase of the rolling stock will serve to insure an adequate national car supply to meet demonstrable demands for rail transportation services, and to provide shippers with equipment suited to their transportation needs;

(6) the probable value of the rolling stock will provide reasonable protection to the United States in the event of repossession of the rolling stock by the

holder of any equipment obligation insured under this Act.

21 (b) Before insuring any equipment obligation under 22 section 105 of this Act, the Board shall obtain in writing an

agreement from the obligor that while any principal or

24 interest on such obligation is unpaid—

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(1) there will be an increase in the load-carrying capacity of the obligor's rolling stock;

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(2) dividends that are payable in the discretion of

the obligor will not be increased over the average

amount paid during the five years preceding enactment of this Act;

(3) assets and revenue related to, or derived from, railroad operations or property will not be used by the obligor in nonrailroad enterprises;

(4) the obligor will cooperate with the Secretary in programs pursuant to title II of this Act to improve the equitable distribution and efficient and expeditious use of rolling stock; and

(5) such obligation will become immediately due and payable if the Secretary finds that conditions (1),

(2), and (3) of this subsection have not been satisfied.

15 (c) The Board shall fix a premium charge for the in16 surance of equipment obligations under this Act of not to ex17 ceed 1 per centum per annum of the principal amount of 18 such equipment obligation outstanding. Premium payments 19 shall be made when moneys are first advanced by the lender 20 under the equipment obligation and on each anniversary date 21 thereafter.

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(d) All money received under sections 104 through 108

23 of this Act shall be deposited in the fund. Amounts not to 24 exceed 5 per centum of the sums collected each year under 25 subsection (c) of this section may be used to pay admin

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1 istrative expenses incurred by the Board incident to the

2 administration of sections 104 through 108 of this title.

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ISSUANCE OF NOTES OR OBLIGATIONS

SEC. 106. (a) If at any time the moneys in the fund

are not sufficient to pay any amount the Board is required 6 to pay under an agreement made under section 105 of this 7 Act, the Board is authorized to issue to the Secretary of 8 the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such

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10 terms and conditions as may be prescribed by the Board, 11 with the approval of the Secretary of the Treasury. The notes 12 or other obligations shall bear interest at a rate determined 13 by the Secretary of the Treasury, taking into consideration 14 the current average market yield on outstanding marketable 15 obligations of the United States on comparable maturities 16 during the month preceding the issuance of such notes or 17 other obligations. The Secretary of the Treasury is author18 ized and directed to purchase any notes and other obligations 19 to be issued hereunder and for such purpose he is authorized 20 to use as a public debt transaction the proceeds from the sale 21 of any securities issued under the Second Liberty Bond Act, as amended, and the purposes for which securities may be 23 issued under such Act, as amended, are extended to include 24 any purchases of such notes and obligations. The Secretary 25 of the Treasury may at any time sell any of the notes or

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1 other obligations acquired by him under this section. All 2 redemptions, purchases, and sales by the Secretary of the

3 Treasury of such notes or other obligations shall be treated

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as public debt transactions of the United States. Funds bor5 rowed under this section shall be deposited in the fund and

6 redemptions of such notes and obligations shall be made by the Board from the fund.

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(b) Notwithstanding any other provisions of law relat9 ing to the acquisition, handling, or disposal of property by 10 the United States, the Board shall have the right in its discretion to perform such acts as may be necessary to com

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plete, recondition, renovate, repair, maintain, and manage, lease, rent, sell, or otherwise dispose of any property or other

interests acquired by it under an agreement made under sections 105 and 106 of this Act.

(c) Any contract or commitment of insurance entered 17 into by the Board under the provisions of this Act shall not 18 be terminated, canceled, or otherwise revoked, except as pro19 vided by the terms and conditions prescribed by the Board 20 under sections 105 and 106 of this Act; and shall be con21 clusive evidence that the obligation complies fully with the 22 provisions of this Act and of the approval and legality of 23 the principal amount, interest rate, and all other terms of the 24 obligation; and any contract or commitment of insurance so 25 entered into shall be valid and incontestable in the hands of