40-813. Organization of new corporation on sale
at foreclosure; powers
A. When property of any railroad corporation located in this state is sold by
virtue of a mortgage or deed of trust, pursuant to a judgment, or by virtue of an
execution, the purchasers at the sale may acquire the property sold, together with other
property and franchises of the corporation in this state, or elsewhere. The purchasers
may become a corporation, with power to own, operate and enjoy the properties and
franchises acquired by the purchase upon filing and recording articles of incorporation
as a railroad corporation. The purchasers shall state in the articles the corporation
whose property or part of whose property they have acquired, the court by whose authority
the sale was made, the date of the judgment or decrees authorizing or directing the sale,
a brief description of the property sold, and the plan or agreement entered into in
anticipation of the formation of the new corporation and pursuant to which the purchase
was made.
B. Such corporation shall succeed to the rights, privileges and franchises of the
corporation whose property it purchased, and shall be subject to such liabilities,
regulations and restrictions, and possess such rights, as are granted or imposed by law
upon other similar corporations incorporated under the laws of this state.
|