17-1640.   Surviving association right to issue bonds or otherobligations.When two or more associations or corporations are merged orconsolidated, the association or corporation surviving or resulting from themerger or consolidation may issue bonds or other obligations, negotiable orotherwise, and with or without coupons or interest certificates theretoattached, to an amount sufficient with the association's or corporation'scapital stock to provide for all the payments the association or corporationwill be required to make, or obligations it will be required to assume, inorder to effect the merger or consolidation. For the purpose of securing thepayment of any such bonds and obligations, it shall be lawful for the survivingor resulting association or corporation to mortgage the association's orcorporation's corporate franchise, rights, privileges and property, real,personal or mixed. The surviving or resulting association or corporation mayissue certificated or uncertificated shares of the association's orcorporation's capital stock and other securities to the members of theconstituent associations or corporations in exchange or payment for theoriginal shares, in such amount as shall be necessary in accordance with theterms of the agreement of mergeror consolidation in order to effect such merger or consolidation in the mannerand on the terms specified in the agreement.

      History:   L. 1991, ch. 74, § 4; May 30.