§1311 Preparation for Public Offering

Summary

Within 30 days after October 21, 1986, the Secretary of Transportation, working with the Treasury Secretary and the Corporation’s Board Chair, must hire between 4 and 6 investment banks to act as equally paid co‑lead managers and form a team to handle the public offering. One of those banks must be picked to run and coordinate the sale. The banks should be chosen for things like their distribution networks, financial strength, railroad knowledge, big‑deal experience, research ability, reputation, and any helpful work they did before October 21, 1986. Also, within 30 days after October 21, 1986, the Corporation must send $200,000,000 to the Treasury. By February 1, 1987, or 30 days before the sale date (whichever comes first), the Secretary of Transportation must decide whether to require up to another $100,000,000; the Corporation must transfer any amount required. The Corporation must also prepare and file a registration statement with the SEC for the securities for the initial and any later public offerings, following securities laws.