Page:United States Statutes at Large Volume 100 Part 3.djvu/90

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PUBLIC LAW 99-000—MMMM. DD, 1986

100 STAT. 1898

PUBLIC LAW 99-509—OCT. 21, 1986

(b) COSTS OF THE PUBLIC OFFERING.—All costs of the public offering payable by the Secretary of Transportation shall be paid from the proceeds of the public offering.

45 USC 1321.

Subpart B—Other Matters Relating to the Sale

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SEC. 4021. RAIL SERVICE OBLIGATIONS.

(a) OBLIGATIONS OF THE CORPORATION.—During a period of 5 years beginning on the date of the enactment of this Act, the following obligations shall apply to the Corporation: (1) The Corporation shall spend in each fiscal year the greater of (A) an amount equal to the Corporation's depreciation for [ financial reporting purposes for such year or (B) $500,000,000, in capital expenditures. With respect to any fiscal year, the Corporation's Board of Directors may reduce the required capital expenditures for such year to an amount which the Board , determines is justified by prudent business and engineering practices, except that the Corporation's capital expenditures shall not be less than $350,000,000 for its first fiscal year beginning after the sale date, a total of $700,000,000 for its first two fiscal years beginning after the sale date, a total of $1,050,000,000 for its first three fiscal years beginning after the ) sale date, a total of $1,400,000,000 for its first four fiscal years

beginning after the sale date, and a total of $1,750,000,000 for its

first five fiscal years beginning after the sale date. (2)(A) Unless the Corporation is in compliance with the « requirements of subparagraph (B), no common stock dividend or preferred stock dividend may be declared or paid by the Corporation. (B)(i) The Corporation shall have been in compliance with the requirements of paragraph (1) as of the end of the fiscal year ^ immediately preceding the fiscal year in which such dividend ^ payment is made. (ii) After payment of any common stock dividend, the Corporation shall have on hand cash or cash equivalents of $400,000,000. Such amount may include amounts borrowed by the Corporation only to the extent that the consolidated funded debt of the Corporation does not exceed 175 percent of the consolidated tangible net worth of the Corporation. . (iii) After payment of any common stock dividend, the cumu7^l\^^J^. lative amount of all common stock dividends paid between the sale date and the date of payment of such dividend shall not exceed 45 percent of— (I) the cumulative net income of the Corporation as reflected in the quarterly financial statements of the Corporation, for the period beginning after the end of the last fiscal o, quarter of the Corporation ending before the sale date, and

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ending at the end of the last fiscal quarter of the Corporation ending before the date of the declaration of such i; J; • Jii/5idividend, less Ati-^oi (II) the cumulative amount of any preferred stock diviI;. dends declared and paid between the sale date and the date . of payment of such common stock dividend. f ! (C) For purposes of this paragraph— (i) the term "common stock dividend" means— ^-^