§727 Additional Purchases of Series a Preferred Stock

Summary

Allows the Association to buy Series A preferred stock and accounts receivable from the Corporation after August 13, 1981, up to $137,000,000. The purchases must include receivables tied to the right-of-way cost dispute until the Commission decides it, and receivables from delays in reimbursement by commuter authorities. Up to $15,000,000 of these funds can buy Series A stock to cover commuter service losses. The Corporation is not responsible for State taxes, except local taxes for taxable periods that started before January 1, 1987. The Association must give back debentures to match the value of properties the Corporation gave to Amtrak Commuter and any commuter authority. The Corporation keeps the right to collect any receivables the Association buys, and no U.S. agency is required to collect them. Up to $262,000,000 is authorized to be appropriated in total: up to $137,000,000 to the Association for buying securities and receivables (available until the Secretary transfers the Corporation); up to $75,000,000 to the Secretary to help move commuter services to other operators 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 the Secretary to help transfer services from railroads that went into reorganization after 1974 to commuter authorities that were operating on January 1, 1979. Any money received from holding or selling the securities or receivables in the first $137,000,000 must be deposited into the Treasury’s general fund. The $75,000,000 amount will be reduced by any amounts reappropriated under section 726(g)(2) when such reappropriation laws are passed.