§1311 Preparation for public offering

Summary

Within 30 days after October 21, 1986, the Secretary of Transportation must, after talking with the Secretary of the Treasury and the corporation’s board chair, hire 4 to 6 investment banks to work together as co-lead managers and form an underwriting group for the public stock sale. The firms will be paid equally and one will be picked to run the sale. The choice of firms must consider things like how well they sell to institutions and regular investors, their money strength, railroad knowledge, big-offering experience, research ability, reputation, and any help they gave before October 21, 1986. The corporation must send $200,000,000 to the Secretary of the Treasury within 30 days after October 21, 1986. By February 1, 1987, or 30 days before the sale (whichever comes first), the Secretary of Transportation must decide if up to another $100,000,000 should be sent, based on the corporation’s viability; the corporation must transfer any amount required. The corporation must also file the required registration with the Securities and Exchange Commission for the offering.