§727 Additional Purchases of Series a Preferred Stock

Summary

The Association must buy Series A preferred stock and accounts receivable from the Corporation after August 13, 1981, up to $137,000,000 total. When it makes those purchases, the Association must buy receivables tied to the right-of-way cost dispute until the Commission settles that dispute, and receivables caused by delays in payments from commuter authorities. Up to $15,000,000 of the money may be used to buy Series A stock to cover losses on commuter service. The Corporation is free from State tax, except for local taxes for taxable periods that start before January 1, 1987. The Association must return debentures equal to the value of properties the Corporation gave to Amtrak Commuter or any commuter authority. The Corporation keeps the right to collect any purchased receivables that come from delayed commuter reimbursements, and no U.S. agency must be forced to collect them. Congress may appropriate up to $262,000,000 total: up to $137,000,000 to the Association for those purchases (available until the Secretary transfers the Corporation under subchapter IV); up to $75,000,000 to the Secretary to help transfer commuter services under section 1139(b) of the Northeast Rail Service Act of 1981; up to $35,000,000 to the Secretary for employee protection under section 1005; and up to $15,000,000 to help move commuter services from railroads that entered reorganization after 1974 to commuter authorities that were operating those services as of January 1, 1979. Money received from holding or selling the securities or receivables bought with the first $137,000,000 must go into the Treasury’s general fund. The $75,000,000 amount will be reduced by any sums reappropriated under section 726(g)(2) when an Act reappropriates those sums.