Winter Leadership Conference | December 5-7 | Rancho Palos Verdes , CA Register Today View Schedule

1169. Effect of rejection of lease of railroad line

(a) Except as provided in subsection (b) of this section, if a lease of a line of railroad under which the debtor is the lessee is rejected under section365 of this title, and if the trustee, within such time as the court fixes, and with the court’s approval, elects not to operate the leased line, the lessor under such lease, after such approval, shall operate the line.
(b) If operation of such line by such lessor is impracticable or contrary to the public interest, the court, on request of such lessor, and after notice and a hearing, shall order the trustee to continue operation of such line for the account of such lessor until abandonment is ordered under section 1170 of this title, or until such operation is otherwise lawfully terminated, whichever occurs first.
(c) During any such operation, such lessor is deemed a carrier subject to the provisions of subtitle IV of title 49 that are applicable to railroads.