I think we might want to be a wee bit cautious at accepting this as gospel. I'd like to see a source or reference for that, ConnDot can't donate them until the FTA loans are paid off.
First, it's been about twenty-years since the locomotives were rebuilt, that's a long time to structure a loan for equipment that was already forty-years-old when it was rebuilt. Second, FTA more often gives grants not loans. But they do usually place a lot of restrictions on what can be done with the equipment as a condition of making the grant. That is in place basically to protect the taxpayers (whose money it is).
I can't think of a railroad example, but about thirty years ago, when New York City Transit wanted to get rid of their Grumman Flxible buses (because of many problems) they had to repay to FTA the money supplied that was used to acquire them. But the money was supplied as a grant not a loan. The condition was the buses had to have a prescribed service life, which is the usual condition (at least for FTA-financed transit buses). New York City was getting rid of them long before the agreed service life ended so the FTA had to be paid back and was.
But who knows?
Last edited by Tommy Meehan on Fri Jan 11, 2013 12:39 pm, edited 1 time in total.