[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 731 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                 S. 731

      To assist rural rail infrastructure, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                April 1 (legislative day, March 3), 1993

 Mr. Pressler introduced the following bill; which was read twice and 
   referred to the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
      To assist rural rail infrastructure, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Rail Infrastructure Act of 
1993''.

SEC. 2. LOCAL RAIL FREIGHT ASSISTANCE; AUTHORIZATION OF APPROPRIATIONS.

    Section 5(q) of the Department of Transportation Act (49 U.S.C. 
App. 1654(q)) is amended to read as follows--
    ``(q) There are authorized to be appropriated to the Secretary for 
the purposes of this section not to exceed $100,000,000 for fiscal year 
1994, $100,000,000 for fiscal year 1995, $100,000,000 for fiscal year 
1996, and $100,000,000 for fiscal year 1997. Such sums as are 
appropriated are authorized to remain available until expended.''.

SEC. 3. LOCAL RAIL FREIGHT ASSISTANCE; PRIORITY OF PROJECTS.

    Section 5 of the Department of Transportation Act (49 U.S.C. App. 
1654) is amended by adding at the end thereof the following new 
subsection:
    ``(r) In addition to the other criteria imposed under this section, 
when considering applications for rail freight assistance under 
subsection (b), the Secretary shall give priority to projects which 
enhance safety, including projects which improve, rehabilitate, or 
reconstruct bridges.''.

SEC. 4. RAILROAD LOAN GUARANTEES; ANNUAL OBLIGATIONS AUTHORIZED.

    Section 511(e) of the Railroad Revitalization and Regulatory Reform 
Act of 1976 (45 U.S.C. 831(e)) is amended by adding at the end thereof 
the following: ``For projects of the type described in paragraph (1) or 
(2) of subsection (a) of this section: (1) for any one fiscal year, 
there is authorized to be appropriated sufficient credit authority to 
allow an amount not to exceed $500,000,000 of principal obligations; 
and (2) not less than $500,000,000 of the aggregate unpaid principal 
amounts of obligations which may be guaranteed by the Secretary under 
this section at any one time shall be for such projects.''.

SEC. 5. RAILROAD LOAN GUARANTEES; MINIMUM REPAYMENT PERIOD AND 
              PREPAYMENT PENALTIES.

    Section 511(g)(2) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 831(g)(2)) is amended to read as follows:
            ``(2) payment of the obligation is required by its terms to 
        be made not less than 15 years nor more than 25 years from the 
        date of its execution, with no penalty imposed for prepayment 
        after 5 years;''.

SEC. 6. RAILROAD LOAN GUARANTEES; MAXIMUM RATE OF INTEREST.

    Section 511(f) of the Railroad Revitalization and Regulatory Reform 
Act of 1976 (45 U.S.C. 831(f)) is amended by striking ``shall not 
exceed an annual percentage rate which the Secretary determines to be 
reasonable, taking into consideration the prevailing interest rates for 
similar obligations in the private market'' and inserting in lieu 
thereof ``shall not exceed the annual percentage rate charged for a 
comparable term by the Federal Financing Bank''.

SEC. 7. RAILROAD LOAN GUARANTEES; DETERMINATION OF REPAYABILITY.

    Section 511(g)(5) of the Railroad Revitalization and Regulatory 
Reform Act of 1976 (45 U.S.C. 831(g)(5)) is amended to read as follows:
            ``(5) either the loan can reasonably be repaid by the 
        applicant or that the loan is collateralized at current value 
        of assets to provide reasonable protection to the United 
        States;''.

SEC. 8. RAILROAD LOAN GUARANTEES; RIGHTS OF SECRETARY.

    Section 511(i) of the Railroad Revitalization and Regulatory Reform 
Act of 1976 (45 U.S.C. 831(i)) is amended by inserting at the end the 
following new paragraph:
    ``(4) The Secretary shall not require, as a condition for guarantee 
of an obligation, that all preexisting secured obligations of an 
obligor be subordinated to the rights of the Secretary in the event of 
a default, but the Secretary may condition guarantee of an obligation 
upon being in pari passu with such other obligations.''.

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