§1170 Abandonment of railroad line

Subsection (a) of section 1178 [enacted as section 1170] permits the court to authorize the abandonment of a railroad line if the abandonment is consistent with the public interest and either in the best interest of the estate or essential to the formulation of a plan. This avoids the normal abandonment requirements of generally applicable railroad regulatory law. Subsection (b) permits some participation by the Interstate Commerce Commission in the abandonment process. The Commission’s role, however, is only advisory. The Commission will represent the public interest, while the trustee and various creditors and equity security holders will represent the interests of those who have invested money in the enterprise. The court will balance the various interests and make an appropriate decision. The subsection specifies that if, except for the pendency of the railroad reorganization case, the proposed abandonment would require Commission approval, then the trustee, with the approval of the court, must initiate an application for the abandonment with the Commission. The court may then fix a time within which the Commission must report to the court on the application. Subsection (c) permits the court to act after it has received the report of the Commission or the time fixed under subsection (b) has expired, whichever occurs first. The court may then authorize the abandonment after notice and a hearing. The notice must go to the Commission, the Secretary of Transportation, the trustee, and party in interest that has requested notice, any affected shipper or community, and any other entity that the court specifies. Subsection (d) stays the

of an abandonment until the time for taking an appeal has expired, or if an appeal has been taken, until the order has become final. However, the court may, and after notice and a hearing, on request of a party in interest authorize termination of service on the line or a portion of the line pending the determination of the appeal. The notice required is the same as that required under subsection (c). If the court authorizes termination of service pending determination of the appeal, an appellant may not obtain a stay of the

of the order authorizing termination, either by the giving of a supersedeas bond or otherwise, during the pendency of the appeal.

2005—Subsec. (e)(1). Pub. L. 109–8 substituted “section 11326(a)” for “section 11347”. 1995—Subsecs. (b), (c), (d)(2). Pub. L. 104–88 substituted “Board” for “Commission” wherever appearing. 1984—Subsec. (a). Pub. L. 98–353, § 521(a), inserted “of all or a portion” after “the abandonment”. Subsec. (c). Pub. L. 98–353, § 521(b), inserted a comma after “abandonment”. Subsec. (d)(2). Pub. L. 98–353, § 521(c), substituted “such abandonment” for “the abandonment of a railroad line”, and “suspension” for “termination” in two places. 1980—Subsec. (e). Pub. L. 96–448 added subsec. (e).

of 2005 AmendmentAmendment by Pub. L. 109–8 effective 180 days after Apr. 20, 2005, and not applicable with respect to cases commenced under this title before such

, except as otherwise provided, see section 1501 of Pub. L. 109–8, set out as a note under section 101 of this title.

of 1995 AmendmentAmendment by Pub. L. 104–88 effective Jan. 1, 1996, see section 2 of Pub. L. 104–88, set out as an

note under section 1301 of Title 49, Transportation.

of 1984 AmendmentAmendment by Pub. L. 98–353 effective with respect to cases filed 90 days after July 10, 1984, see section 552(a) of Pub. L. 98–353, set out as a note under section 101 of this title.

of 1980 Amendment Pub. L. 96–448, title VII, § 710, Oct. 14, 1980, 94 Stat. 1966, provided that: “(a) Except as provided in subsections (b), (c), and (d) of this section, the provisions of this Act and the