40-285. Disposition of plant by public service
corporations; acquisition of capital stock of public service
corporation by other public service corporations
A. A public service corporation shall not sell, lease, assign, mortgage or
otherwise dispose of or encumber the whole or any part of its railroad, line, plant, or
system necessary or useful in the performance of its duties to the public, or any
franchise or permit or any right thereunder, nor shall such corporation merge such system
or any part thereof with any other public service corporation without first having
secured from the commission an order authorizing it so to do. Every such disposition,
encumbrance or merger made other than in accordance with the order of the commission
authorizing it is void.
B. The approval or permit of the commission under this section shall not revive or
validate any lapsed or invalid franchise or permit, or enlarge or add to the powers or
privileges contained in the grant of any franchise or permit, or waive any forfeiture.
C. Nothing in this section shall prevent the sale, lease or other disposition by
any such corporation of property which is not necessary or useful in the performance of
its duties to the public, and any sale of its property by such corporation shall be
conclusively presumed to have been of property which is not useful or necessary in the
performance of its duties to the public as to any purchaser of the property in good faith
for value.
D. A public service corporation shall not purchase, acquire, take or hold any part
of the capital stock of any other public service corporation organized or existing under
the laws of this state without a permit from the commission.
E. Every assignment, transfer, contract, or agreement for assignment or transfer of
any stock in violation of the provisions of this section is void, and the transfer shall
not be made on the books of any public service corporation.
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