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B-175155(2) 1 (1975-04-22)

handle is hein.gao/gaobadrfl0001 and id is 1 raw text is: eTHE COMPTR-11LLER GIENERAL DECISION OF THE UNI ,EO STATES WASH NGTON. D .C. 20548 APR 22 $975 FILE: DATE: MATTER OF: Use of grant funds by National Ralroad Passenger Corporation (mtrak) DIGEST: Grant funds obtained by mtrak under section 601 of Rail Passenger Service Act as amended and teporarily not needed for other purposes, my be advanced to purchase capital equipmet and to pay off loans guaranteed under section 602 of Act and Amtr-ak can suhsequen~tly borrow funds uder section 602 equal to munt of those capital expenditures and repayments made with grant funds pro vidad proper accounting safeguards are maintained, C-175155, September 29, 1972, is affired. At the suggestion of the Federal Railroad Adinistration, Department of Transportation, we have been asked by the National Railroad Passenger Corporation (Amtrak) to confirm its understanding oL our deaisior of September 29, 192, b-17.15$, relating to the use. of funds granted to Amtrak under section 601 of the Rail Passenger Service Act, as amended 45 U.S.C. § 601. We have been informally advised that the Federal Railroad Adm inistration also seeks a full exposition of our views on this matter, In his letter to us, Amtrak's Vice President for Finance states that it is the corporation's understanding of our 1972 decision that- - '- AIMTR4< may utilize non-loan funds for capital expenditures and subsequently borrow 602 funds in an amount equl to non-loan funds expended for capital purposes. S- ARTRI may use non-loan funds to retire guara'm teed loans and subseque.ntly borrow under 602 authority in an mount equal to these repay- ments. $eetions 60i and 602 of the Rail Passenger Service Act of b,0, Pu b. L. No. 91-5i3, October 3, 1.970, 84 State 1338, were - I -