§1311 Preparation for Public Offering

Summary

Within 30 days after October 21, 1986, the Secretary of Transportation must hire between 4 and 6 investment banks to serve together as co-lead managers and create a group to sell the public offering. The banks will be paid equally and one will be picked to run the sale. When choosing them, the Secretary must look at things like how well they distribute securities, their financial strength, knowledge of the railroad industry, experience with large offerings, research ability, reputation, and any help they gave before October 21, 1986 to support the Corporation’s long-term viability. Also, within 30 days after October 21, 1986, the Corporation must send $200,000,000 to the Treasury. On or before February 1, 1987, or 30 days before the sale (whichever is first), the Secretary of Transportation will decide if the Corporation must transfer up to another $100,000,000 based on the Corporation’s viability, and the Corporation must transfer whatever is required. The Corporation must file a registration statement with the Securities and Exchange Commission for the offering.