WASHINGTON - Draft legislation to bail out automakers includes a provision that would require the federal government to guarantee leaseback deals that transit agencies entered into with private investors and that were approved by the Federal Transit Administration before 2006.

The legislation would benefit some 31 transit agencies in 18 states that could face $2 billion to $4 billion in termination payments from "sale-in, lease out" and "lease-in, lease-out" deals for equipment and rails that technically defaulted when the ratings of the insurers that guaranteed the deals were downgraded.

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