40-810

40-810. Power to borrow money; issuance of
notes and bonds; mortgage of property and franchise; sinking fund
to redeem bonds

A. Railroad companies may borrow amounts of money they deem necessary for
constructing and completing railroads and may issue and dispose of bonds or promissory
notes therefor, in denominations of not less than one hundred dollars, and at a rate of
interest not exceeding ten per cent per annum, in an amount not exceeding their capital
stock. They may issue bonds or promissory notes in payment of any debts or contracts for
constructing and completing railroads with equipment and other property relative thereto.

B. To secure the payment of the bonds or notes, railroad companies may mortgage
their corporate property and franchise.

C. The directors shall provide a sinking fund to be applied to the redemption of
bonds on or before their maturity.