United States Code
USC most recently checked for updates: Sep 23, 2023
Abandonment of railroad line
The court, after notice and a hearing, may authorize the abandonment of all or a portion of a railroad line if such abandonment is—
in the best interest of the estate; or
essential to the formulation of a plan; and
consistent with the public interest.
If, except for the pendency of the case under this chapter, such abandonment would require approval by the Board under a law of the United States, the trustee shall initiate an appropriate application for such abandonment with the Board. The court may fix a time within which the Board shall report to the court on such application.
After the court receives the report of the Board, or the expiration of the time fixed under subsection (b) of this section, whichever occurs first, the court may authorize such abandonment, after notice to the Board, the Secretary of Transportation, the trustee, any party in interest that has requested notice, any affected shipper or community, and any other entity prescribed by the court, and a hearing.
Enforcement of an order authorizing such abandonment shall be stayed until the time for taking an appeal has expired, or, if an appeal is timely taken, until such order has become final.
If an order authorizing such abandonment is appealed, the court, on request of a party in interest, may authorize suspension of service on a line or a portion of a line pending the determination of such appeal, after notice to the Board, the Secretary of Transportation, the trustee, any party in interest that has requested notice, any affected shipper or community, and any other entity prescribed by the court, and a hearing. An appellant may not obtain a stay of the enforcement of an order authorizing such suspension by the giving of a supersedeas bond or otherwise, during the pendency of such appeal.
In authorizing any abandonment of a railroad line under this section, the court shall require the rail carrier to provide a fair arrangement at least as protective of the interests of employees as that established under section 11326(a) of title 49.
Nothing in this subsection shall be deemed to affect the priorities or timing of payment of employee protection which might have existed in the absence of this subsection.
(Pub. L. 95–598,
Nov. 6, 1978, 92 Stat. 2643; Pub. L. 96–448, title II, § 227(a), Oct. 14, 1980, 94 Stat. 1931; Pub. L. 98–353, title III, § 521, July 10, 1984, 98 Stat. 388; Pub. L. 104–88, title III, § 302(2), Dec. 29, 1995, 109 Stat. 943; Pub. L. 109–8, title XII, § 1217, Apr. 20, 2005, 119 Stat. 195.)
cite as: 11 USC 1170