17-1640. Surviving association right to issue bonds or other obligations.
17-1640
17-1640. Surviving association right to issue bonds or other
obligations.
When two or more associations or corporations are merged or
consolidated, the association or corporation surviving or resulting from the
merger or consolidation may issue bonds or other obligations, negotiable or
otherwise, and with or without coupons or interest certificates thereto
attached, to an amount sufficient with the association's or corporation's
capital stock to provide for all the payments the association or corporation
will be required to make, or obligations it will be required to assume, in
order to effect the merger or consolidation. For the purpose of securing the
payment of any such bonds and obligations, it shall be lawful for the surviving
or resulting association or corporation to mortgage the association's or
corporation's corporate franchise, rights, privileges and property, real,
personal or mixed. The surviving or resulting association or corporation may
issue certificated or uncertificated shares of the association's or
corporation's capital stock and other securities to the members of the
constituent associations or corporations in exchange or payment for the
original shares, in such amount as shall be necessary in accordance with the
terms of the agreement of merger
or consolidation in order to effect such merger or consolidation in the manner
and on the terms specified in the agreement.
History: L. 1991, ch. 74, § 4; May 30.