---
kind: "section"
citation: "45 U.S.C. § 742"
title: "45"
title_heading: "Railroads"
number: "742"
heading: "Powers and duties of Corporation"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/45/742"
units:
  - "Chapter 16 — Regional Rail Reorganization"
  - "Subchapter III — Consolidated Rail Corporation"
---

# §742. Powers and duties of Corporation


The [Corporation](/usc/45/702.md?p=5) shall have all of the powers and is subject to all of the duties vested in it under this chapter, in addition to the powers conferred upon it under the laws of the [State](/usc/45/702.md?p=19) or [States](/usc/45/702.md?p=19) in which it is incorporated and the powers of a [railroad](/usc/45/702.md?p=15) in any [State](/usc/45/702.md?p=19) in which it operates. The [Corporation](/usc/45/702.md?p=5) is authorized and directed to—

- (a) acquire [rail properties](/usc/45/702.md?p=14) designated in the [final system plan](/usc/45/702.md?p=8) to be transferred or conveyed to it;
- (b) operate rail service over such [rail properties](/usc/45/702.md?p=14) except as provided under sections [744(e)](/usc/45/744.md?p=e) and [791(d)(3)](/usc/45/791.md?p=d-3) of this title;
- (c) rehabilitate, improve, and modernize such [rail properties](/usc/45/702.md?p=14); and
- (d) maintain adequate and efficient rail services.

So long as 50 per centum or more, as determined by the [Secretary](/usc/45/702.md?p=18) of the Treasury, of the outstanding indebtedness of the [Corporation](/usc/45/702.md?p=5) consists of obligations of the [Association](/usc/45/702.md?p=1) or other debts owing to or guaranteed by the United States, the [Corporation](/usc/45/702.md?p=5) shall not engage in activities which are not related to transportation.


## Source credit

(Pub. L. 93–236, title III, § 302, Jan. 2, 1974, 87 Stat. 1005.)

## Notes

### Statutory Notes and Related Subsidiaries

### Abolition of United States Railway Association and Transfer of Functions and Securities

See section 1341 of this title.