[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: 49CFR260.39]



[Page 818]

 

                        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 D_Standards for Maintenance of Facilities Involved in the 

                                 Project

 

Sec. 260.39  Maintenance standards.



    (a) When the proceeds of a direct loan or an obligation guaranteed 

by the Administrator under this part are, or were, used to acquire, 

rehabilitate, improve or construct track, roadbed, and related 

structures, Borrower shall, as long as any portion of the principal or 

interest of such obligation remains unpaid, maintain such facilities in 

at least the highest track class, as defined by FRA Track Safety 

Standards in part 213 of this chapter, specified in the Application at 

which the rehabilitated, improved, acquired, or constructed track is to 

be operated upon completion of the project.

    (b) When the proceeds of a direct loan or an obligation guaranteed 

by the Administrator under this part are, or were, used for equipment or 

facilities, the Borrower shall, during the period in which any portion 

of the principal or interest in such obligation remains unpaid, maintain 

such equipment or facilities in a manner consistent with sound 

engineering and maintenance practices and in a condition that will 

permit the level of use that existed upon completion of the acquisition, 

rehabilitation, improvement or construction of such equipment or 

facilities.