[Code of Federal Regulations]
[Title 49, Volume 4]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR250.1]

[Page 726-728]
 
                        TITLE 49--TRANSPORTATION
 
       CHAPTER II--FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF 
                             TRANSPORTATION
 
PART 250_GUARANTEE OF CERTIFICATES OF TRUSTEES OF RAILROADS IN 
REORGANIZATION--Table of Contents
 
Sec. 250.1  Form and content of application.




Sec.
250.1 Form and content of application.
250.2 Required exhibits.
250.3 Fees.
250.4 Execution and filing of application.
250.5 General instructions.

    Authority: Sec. 3(f) of the Emergency Rail Services Act of 1970, 
Pub. L. 91-663; sec. 1.49(m), regulations of the Office of the Secretary 
of Transportation, 49 CFR 1.49(m).

    Source: 36 FR 770, Jan. 16, 1971, unless otherwise noted.


    The application shall include, in the order indicated and by section 
numbers and letters corresponding to those used in this part, the 
following:
    (a) As to the Trustee:
    (1) Full and correct name and principal business address.
    (2) The name and address of the reorganization court under the 
direction of which the Trustee is acting and the docket number of the 
proceeding.
    (3) Name, title, and address of the person to whom correspondence 
regarding the application should be addressed.
    (4) Brief description of the loan and its purpose or purposes, 
including statements of
    (i) The total amount of the loan and the amount of the guarantee 
being sought,
    (ii) The purpose or purposes for which the loan proceeds will be 
used,
    (iii) The maturity date or dates,
    (iv) The date or dates on which the Trustee desires the funds to be 
made available, and
    (v) The rate of interest.
    (5) Statement, in summary form, showing financial obligations to or 
claims against the United States or obligations for which the United 
States is guarantor, if any, by applicant or any applicant's parent as 
to the date of the application, including:
    (i) Status of any claims under litigation; and
    (ii) Any other debts or credits existing between the applicant and 
the United States, showing the department

[[Page 727]]

or agency involved in such loans, claims and other debts;
    (6)(i) Statement on behalf of the Trustee that the Trustee has 
endeavored to obtain a loan or loans for the purpose or purposes 
proposed without a guarantee by the Secretary, but has not been able to 
obtain a loan therefor upon reasonable terms, or if only upon terms 
considered unreasonable, a statement setting forth such terms and 
describing any facts relevant thereto.
    (ii) Information as to the Trustee's efforts to obtain the needed 
financing without a guarantee thereof by the Secretary, and as to the 
results of such efforts. (See Sec. 250.2(b)(1) as to exhibits on this 
subject.)
    (7) Full and complete statement, together with independent 
supporting evidence, where feasible, concerning the effect that 
cessation of essential transportation services of carrier would have on 
the public welfare.
    (8) Full and complete statement, together with supporting evidence, 
where possible, demonstrating that cessation of essential transportation 
services by applicant carrier is imminent.
    (9) Full and complete statement, together with supporting evidence, 
if possible, that there is no other practicable means of obtaining funds 
to meet payroll and other expenses necessary to provide essential 
transportation services other than the issuance of Trustee certificates. 
Such statements shall include in detail a complete listing of all 
nontransportation assets of the carrier and corporate affiliates, or 
subsidiaries having a fair market value of not less than $50,000, 
together with the amount of encumbrances thereon, if any, and a 
statement or plan for the disposition or sale of such assets as a means 
of obtaining funds necessary for essential transportation services.
    (10) Full and complete statement, together with supporting evidence, 
if possible, demonstrating, with particularity, that the carrier can 
reasonably be expected to become self sustaining within a reasonable 
period of time.
    (11) Full and complete statement, together with supporting evidence, 
that the probable value of the assets of the carrier in the event of 
liquidation provides reasonable protection to the United States.
    (b) As to the holder or holders:
    (1) Full and correct name and principal business address.
    (2) Names and addresses of principal executive officers and 
directors, or partners.
    (3) Reference to applicable provisions of law and the charter or 
other governing instruments conferring authority to the lender to make 
the loan and to accept the proposed obligation.
    (4) Brief statement of the circumstances and negotiations leading to 
the agreement by the lender to make the proposed loan, including the 
name and address of any person or persons, or employees of the carrier, 
representing or purporting to represent the Trustee in connection with 
such negotiations.
    (5) Brief statement of the nature and extent of any affiliation or 
business relationship between the lender and any of its directors, 
partners, or principal executive officers, on the one hand, and, on the 
other, the carrier and any of its directors, partners, or principal 
executive officers, or any person or persons whose names are required to 
be furnished under paragraph (b)(4) of this section.
    (6) Full and complete statement of all sums paid or to be paid and 
of any other consideration given or to be given by lender in connection 
with the proposed loan, including with respect thereto:
    (i) Name and address of each person to whom the payment is made or 
to be made,
    (ii) The amount of the cash payment, or the nature and value of 
other consideration,
    (iii) The exact nature of the services rendered or to be rendered,
    (iv) Any condition upon the obligation of the lender to make such 
payment, and
    (v) The nature of any affiliation, association, or prior business 
relationship between any person named in answer to paragraph (6)(i) of 
this section and the lender or any of its directors, partners, or 
officers.
    (c) As to the impact of the financing on the environment. (1) 
Summary statement of the use to which funds will be put and any 
anticipated impact on the

[[Page 728]]

environment. After reviewing this submission, the Administrator retains 
the right to require the Trustee to submit a detailed assessment of the 
financing's impact on the environment in a general format to be supplied 
by the Administrator.
    (2) [Reserved]

[44 FR 23851, Apr. 23, 1979]