[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: 49CFR260.25]



[Page 814-815]

 

                        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. 260.25  Additional information for Applicants not having a credit 

rating.



    Each application submitted by Applicants not having a recent credit 

rating from one or more nationally recognized rating agencies shall 

include, in the order indicated and identified by applicable numbers and 

letters corresponding to those used in this section, the following 

information:

    (a) A narrative statement detailing management's business plan to 

enhance Applicant's ability to provide



[[Page 815]]



rail services including a discussion of the following:

    (1) Applicant's current and prospective traffic base, including by 

commodity and geographic region, major markets served, major interchange 

points, and market development plans;

    (2) Applicant's current operating patterns, and plans, if any, to 

enhance its ability to serve its current and prospective traffic base;

    (3) System-wide plans to maintain equipment and rights-of-way at 

current or improved levels; and

    (4) Specific plans for rationalization of marginal or uneconomic 

services;

    (b) Detailed financial information, including:

    (1) Financial statements prepared by a Certified Public Accountant 

(audited, if available), for the four calendar years immediately 

preceding the date of filing of the application, including:

    (i) A copy of Applicant's most recent year-end general balance sheet 

and a copy of Applicant's most recent unaudited general balance sheet; 

and

    (ii) Applicant's most recent annual income statement and a spread 

sheet showing unaudited monthly and year-to-date income statement data 

up to the date the application is filed;

    (2) Projected financial statements, including spread sheets showing 

for each of the four years subsequent to the year in which the 

application is filed, both before and after giving effect to the 

proceeds of the assistance requested in the application:

    (i) Forecasted annual income statement;

    (ii) Forecasted year-end balance sheets. These spread sheets shall 

be accompanied by a statement setting forth the bases for such 

forecasts; and

    (iii) A spread sheet showing changes in financial position for the 

year in which the application is filed, including the period ending on 

the date of the application based upon actual data and the period from 

the date of the application to the end of the year, based upon estimated 

and forecasted data;

    (c) Capital spending plans for the next five years;

    (d) Cash flow projections;

    (e) Contingency plans for termination of the project before 

completion, if necessary; and

    (f) A narrative description of Applicant's management team, 

including:

    (1) Rail experience of top management;

    (2) Management's plans for achieving growth and its long-term 

capital spending plan; and

    (3) A narrative description of Applicant's workforce and the 

historical rate of employee turnover.