### Question
What is the definition of fair and equitable?


### Answer
The definition of **fair and equitable** is as follows in *45 U.S.C. § 745*:

> fair and equitable, in accordance with the standards applicable to the approval of a plan of reorganization (or a step in such plan) under section 77 of the Bankruptcy Act [1](#745_1_target) to—


(1) the estates of railroads in reorganization in the region and persons leased, operated, or controlled by such railroads who have conveyed rail properties, under section 743(b)(1) of this title, in exchange for securities of the Corporation, the Association, or profitable railroads and other benefits provided as a consequence of this chapter and to any subsequent holders of such securities at the time of the supplemental transaction involved

#### Citation:
  - *45 U.S.C. § 745*
  - Heading: **CHAPTER 16-REGIONAL RAIL REORGANIZATION > SUBCHAPTER III-CONSOLIDATED RAIL CORPORATION**

