§ 205. RESTRUCTURING LONG-TERM DEBT AND CAPITAL LEASES.

436 words·~2 min read·/usc/title-49/section-205

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In General .— The Secretary of the Treasury, in consultation with the Secretary [of Transportation] and Amtrak, may make agreements to restructure Amtrak’s indebtedness, to the extent provided in advance in appropriations Acts. Debt Restructuring .— To the extent amounts are provided in advance in appropriations Acts, the Secretary of the Treasury, in consultation with the Secretary and Amtrak, shall enter into negotiations with the holders of Amtrak debt, including leases, outstanding for the purpose of restructuring (including repayment) and repaying that debt.

The Secretary of the Treasury may secure agreements for restructuring or repayment on such terms as the Secretary of the Treasury deems favorable to the interests of the United States Government. Criteria .— In restructuring Amtrak’s indebtedness, the Secretary of the Treasury and Amtrak— shall take into consideration repayment costs, the term of any loan or loans, and market conditions; and shall ensure that the restructuring results in significant savings to Amtrak and the United States Government.

Payment of Renegotiated Debt .— If the criteria under subsection

(c)are met, the Secretary of the Treasury may assume or repay the restructured debt, as appropriate, to the extent provided in advance in appropriations Acts. Amtrak Principal and Interest Payments.— Principal on debt service .— Unless the Secretary of the Treasury makes sufficient payments to creditors under subsection

(d)so that Amtrak is required to make no payments to creditors in a fiscal year, the Secretary [of Transportation] shall use funds authorized for the use of Amtrak for retirement of principal or payment of interest on loans for capital equipment, or capital leases. Reductions in authorization levels .— Whenever action taken by the Secretary of the Treasury under subsection

(a)results in reductions in amounts of principal or interest that Amtrak must service on existing debt, the corresponding amounts authorized for Amtrak shall be reduced accordingly. Legal Effect of Payments Under This Section .— The payment of principal and interest on secured debt, other than debt assumed under subsection (d), with the proceeds of grants under subsection

(e)shall not— modify the extent or nature of any indebtedness of Amtrak to the United States in existence; change the private nature of Amtrak’s or its successors’ liabilities; or imply any Federal guarantee or commitment to amortize Amtrak’s outstanding indebtedness. Secretary Approval .— Amtrak may not incur more debt after the date of enactment of this Act without the express advance approval of the Secretary [of Transportation], unless that debt receives credit assistance, including direct loans and loan guarantees, under chapter 6 of title 23, United States Code or chapter 224 of title 49, United States Code.