Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

The Center For Debt Management
Center4DebtManagement.com ... Always open 24 / 7

Note: For affordable legal assistance The Center For Debt Management highly recommends Standard Legal's Do-It-Yourself Bankruptcy Forms Software Kits. For credit repair services,
the most trusted law firm in America with over 15 years of experience is Lexington Law Firm.

For more bankruptcy help and bankruptcy alternatives, go to Bankruptcy Resources



TITLE 11–BANKRUPTCY

CHAPTER 11– REORGANIZATION

Sub Chapter IV – Railroad Reorganization

Sec. 1166. Effect of subtitle IV of title 49
and of Federal, State, or local regulations

   Except with respect to abandonment under section 1170 of this title, 
or merger, modification of the financial structure of the debtor, or 
issuance or sale of securities under a plan, the trustee and the debtor 
are subject to the provisions of subtitle IV of title 49 that are 
applicable to railroads, and the trustee is subject to orders of any 
Federal, State, or local regulatory body to the same extent as the 
debtor would be if a petition commencing the case under this chapter had 
not been filed, but--
        (1) any such order that would require the expenditure, or the 
    incurring of an obligation for the expenditure, of money from the 
    estate is not effective unless approved by the court; and
        (2) the provisions of this chapter are subject to section 601(b) 
    of the Regional Rail Reorganization Act of 1973.

(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2642; Pub. L. 97-449, 
Sec. 5(a)(2), Jan. 12, 1983, 96 Stat. 2442; Pub. L. 98-353, title III, 
Sec. 518, July 10, 1984, 98 Stat. 388; Pub. L. 103-394, title V, 
Sec. 501(d)(34), Oct. 22, 1994, 108 Stat. 4146.)


                      Historical and Revision Notes

                         legislative statements

    Section 1166 of the House amendment is derived from sections 1164 
and 1165 of the House bill. An alternative proposal contained in section 
1168(1) of the Senate bill is rejected as violative of the principle of 
equal treatment of all creditors under title 11.


                        senate report no. 95-989

    Section 1168 [enacted as section 1166] makes the trustee subject to 
the Interstate Commerce Act [49 U.S.C. 10101 et seq.] and to lawful 
orders of the Interstate Commerce Commission, the U.S. Department of 
Transportation, and State and regulatory bodies. The approval of the 
court is required, however, if the order requires the expenditure of 
money or the incurring of an expenditure other than the payment of 
certain interline accounts. The limitation of ``lawful orders'' of State 
commissions to those involving ``safety, location of tracks, and 
terminal facilities,'' which is contained in present section 77(c)(2) 
[section 205(c)(2) of former title 11], is eliminated.
    Subsection (1) further provides that the debtor must pay in cash all 
amounts owed other carriers for current balances owed for interline 
freight, passenger and per diem, including incentive per diem, for 
periods both prior and subsequent to the filing of the petition, without 
the necessity of court approval.
    Subsection (2) makes the provisions of the chapter subject to 
section 601(b) of the Regional Rail Reorganization Act [45 U.S.C. 
791(b)], which excludes the Interstate Commerce Commission from any 
participation in the reorganization of certain northeast railroads that 
have transferred their rail properties to Consolidated Rail Corporation 
(Conrail).


                         house report no. 95-595

    Section 1164 [enacted as section 1166] makes the debtor railroad 
subject to the provisions of the Interstate Commerce Act [49 U.S.C. 
10101 et seq.] that are applicable to railroads, and the trustee subject 
to the orders of the Interstate Commerce Commission to the same extent 
as the debtor would have been if the case had not been commenced. There 
are several exceptions. The section does not apply with respect to 
abandonment of rail lines, which is provided for under section 1169, or 
with respect to merger under a plan, modification of the financial 
structure of the debtor by reason of the plan, or the issuance or sale 
of securities under a plan. Further, the orders of the ICC are not 
effective if the order would require the expenditure or the incurring of 
an obligation for the expenditure of money from the estate, unless 
approved by the court, and the provisions of this chapter are subject to 
section 601(b) of the Regional Rail Reorganization Act of 1973 [45 
U.S.C. 791(b)].
    [Section 1165 (enacted as section 1166)] The same rules apply with 
respect to Federal, State, or local regulations. The trustee is subject 
to the orders of a Federal, State, or local regulatory body to the same 
extent as the debtor would be if the case had not been commenced. 
However, any order that would require the expenditure, or the incurring 
of an obligation for the expenditure, of money is not effective under 
[until] approved by the court.

                       References in Text

    Section 601(b) of the Regional Rail Reorganization Act of 1973, 
referred to in par. (2), is classified to section 791(b) of Title 45, 
Railroads.


                               Amendments

    1994--Par. (2). Pub. L. 103-394 struck out ``(45 U.S.C. 791(b))'' 
after ``Act of 1973''.
    1984--Pub. L. 98-353 directed substitution of ``subtitle IV of title 
49'' for ``the Interstate Commerce Act (49 U.S.C. 1 et seq.)'', which 
substitution had previously been made by Pub. L. 97-449.
    1983--Pub. L. 97-449 substituted ``subtitle IV of title 49'' for 
``Interstate Commerce Act'' in section catchline, and ``subtitle IV of 
title 49'' for ``the Interstate Commerce Act (49 U.S.C. 1 et seq.)'' in 
text.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not 
applicable with respect to cases commenced under this title before Oct. 
22, 1994, see section 702 of Pub. L. 103-394, set out as a note under 
section 101 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 1165 of this title; title 28 
section 959.


Back Index Next

Note: For affordable legal assistance The Center For Debt Management highly recommends Standard Legal's Do-It-Yourself Bankruptcy Forms Software Kits. For credit repair services,
the most trusted law firm in America with over 15 years of experience is Lexington Law Firm.

For more bankruptcy help and bankruptcy alternatives, go to Bankruptcy Resources

Go to Index of Related Articles and Resources!

Click Below To Check Out More Financial Resources

Return to Top

The Center For Debt Management™

Helping Consumers Save Money and Reduce Debt Is Our Only Business!™

We invite you to explore the sectors listed below. We promise that you'll find exceptional values, offers and resources in which to reduce your living expenses and to enjoy life!


Debt Management and Financial Services! The Internet's oldest and most comprehensive debt management agency! Resources for debt management, consumer credit counseling, debt consolidation, debt reduction settlements, legal aid, financial aid, loans and financing, credit repair, credit reports, insurance quotes, income sources, tax assistance, and more.

Established in 1989 and serving the online community since 1992!


This site was created and designed by Daniel A. Gelinas
Disclaimer and Privacy Policy      © Copyright  2007 "The Center For Debt Management"      Contact Us
Return to Top

Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software