Rule 261 Territory: Signal indication will be the authority for a train to operate in either direction on the same track.

• A. In either direction on the same track.
• B. Only in the indicated direction.
• C. Only after a Form D.
• D. Never beyond the block.

Answer: (A)

Rule 261 Territory means the signal’s indication serves as the authority to move, and it applies to trains operating in either direction on the same track within that territory. So when a signal shows you may proceed, it authorizes movement regardless of direction along that track section, provided you’re within the same territory and follow any other applicable rules (signals, speed, etc.). This explains why the correct choice is that you’re allowed to operate in either direction on the same track. The other options would imply movement is restricted to a single direction, or introduce unrelated procedures (like a Form D), or misstate the scope of the rule beyond the block.