[Code of Federal Regulations]

[Title 49, Volume 4]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR260.23]



[Page 813-814]

 

                        TITLE 49--TRANSPORTATION

 

       CHAPTER II--FEDERAL RAILROAD ADMINISTRATION, DEPARTMENT OF 

                             TRANSPORTATION

 

PART 260_REGULATIONS GOVERNING LOANS AND LOAN GUARANTEES UNDER THE 

RAILROAD REHABILITATION AND IMPROVEMENT FINANCING PROGRAM--Table 

of Contents

 

             Subpart C_Applications for Financial Assistance

 

Sec. 260.23  Form and content of application generally.



    Each application shall include, in the order indicated and 

identified by applicable paragraph numbers and letters corresponding to 

those used in this section, the following information:

    (a) Full and correct name and principal business address of the 

Applicant;

    (b) Date of Applicant's incorporation, or organization if not a 

corporation, and name of the government, State or territory under the 

laws of which it was incorporated or organized. If Applicant is a 

partnership, association, or other form of organization other than a 

corporation, a full description of the organization should be furnished;

    (c) Name, title, and address of the person to whom correspondence 

regarding the application should be addressed.

    (d) A statement of whether the project involves another railroad or 

other participant, through joint execution, coordination, or otherwise; 

if so, description of the relative participation of Applicant and such 

other railroad or participant, including financial statements (if 

applicable) and financing arrangements of each participant, portion of 

the work to be performed by each participant, and anticipated level of 

usage of the equipment or facility of each participant when the work is 

completed, along with a statement by a responsible officer or official 

of the other railroad or participant that the information provided 

reflects their agreement on these matters;

    (e) A detailed description of the amount and timing of the financial 

assistance that is being requested and its purpose or purposes, 

including:

    (1) Detailed description of the project and its purpose or purposes;

    (2) A description of all facilities or equipment and the physical 

condition of such facilities or equipment included in or directly 

affected by the proposed project;

    (3) Each part or sub-part into which the project may reasonably be 

divided and the priority and schedule of expenditure for each part or 

sub-part; and

    (4) Proposed dates of commencement and completion of the project and 

estimated timing of the expenditure of the proceeds of the obligation;



[[Page 814]]



    (5) A map of Applicant's existing railroad with location of project 

indicated, if appropriate.

    (f) A listing and description of the collateral to be offered the 

Administrator in connection with any financial assistance provided; 

Applicant's opinion of the value of this security and the basis for such 

opinion; in the case of leased equipment to be rehabilitated or improved 

with the proceeds of the obligation proposed to be guaranteed, Applicant 

shall state, in addition to the above, whether the lease provides for, 

or the lessor will permit, encumbrance of the leasehold or subordination 

of the lessor's interest in the equipment to the Administrator;

    (g) A 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 affiliated corporate 

entity of the Applicant or the Applicant's parent as of the date of the 

application, including:

    (1) Status of any claims under litigation; and

    (2) Any other debits or credits existing between the Applicant and 

the United States, showing the department or agency involved in such 

loans, claims and other debts;

    (h) To the extent such information is available, an analysis that 

includes:

    (1) A statement, together with supporting evidence including copies 

of all market analyses and studies that have been performed to determine 

present and future demand for rail services or facilities, that the 

financing is justified by present and future probable demand for rail 

services or facilities, will meet existing needs for such services or 

facilities, and will provide shippers or passengers with improved 

service;

    (2) Description of the impact of the project upon the projected 

freight or passenger traffic to be originated, terminated, or carried by 

the Applicant for at least the five years immediately following 

completion of the project;

    (3) Explanation of the manner in which the project will increase the 

economical and efficient utilization of equipment and facilities; and

    (4) Description of cost savings or any other benefit which would 

accrue to the Applicant from the project;

    (i) A statement as to how the project will contribute to, or 

enhance, the safe operation of the railroad, considering such factors as 

the occupational safety and health of the employees and the improvement 

of the physical and other conditions that have caused or may cause 

serious injury or loss of life to the public or significant property 

damage;

    (j) A statement of the Applicant's maintenance program for its 

entire rail system and planned maintenance program for the equipment or 

facilities financed by the proceeds of the financial assistance;

    (k) A certified statement in the form contained in Sec. 260.31(d) 

that Applicant will pay to the Administrator, in accordance with Sec. 

260.11, the investigation charge with respect to the application.

    (l) Information relevant to the potential environmental impacts of 

the project in the context of applicable Federal laws;

    (m) Any additional information that the Applicant deems appropriate 

to convey a full and complete understanding of the project, the 

project's relations to the priorities listed in Sec. 260.7, and its 

impact, or to assist the Administrator in making the statutorily 

prescribed findings; and

    (n) Any other information which the Administrator may deem necessary 

concerning an application filed under this part.

    (o) Railroad applicants must also submit a copy of application for 

financing for the project in the private sector, including terms 

requested, from at least one commercial lender, and its response 

refusing to provide such financing.