redemption payments and interest rate

redemption payments and interest rate Sec. 214. (a) Section 506(a)(4) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 826(a)(4)) is amended by striking out the period at the end thereof and inserting in lieu thereof the following: “and, except to permit the railroad to prepay its redemption payments, the number of such annual redemption payments shall in no event be less than 15; and”. (b) Section 506(a) of the Railroad Revitalization and Regulatory Reform Act of 1976 (45 U.S.C. 826( a)) is amended by adding at the end thereof the following new paragraph: “(5) the proceeds from the issuance of which are to be expended solely to reduce the deferred maintenance on facilities, shall in no event, yield (A) less than the minimum permissible yield determinable in accordance with paragraphs (3) and (4) of this subsection, nor (B) more than such railroad’s rate of return on total capital (represented by the ratio which such carrier’s net income, including interest on long-term debt, bore to the sum of the average shareholder’s equity, long-term debt, and accumulated deferred income tax credits for the three fiscal years preceding the date of submission of the application) as determined in accordance with the uniform system of accounts promulgated by the Commission in those eases in which such rate of return exceeded such minimum permissible yield.”.