Texas Vernon's Texas Civil Statutes - Article 6422. New Corporation, How Formed
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Art. 6422. [6625] [4550] NEW CORPORATION, HOW FORMED. In
case of a sale of the property and franchises of a railroad company
within this State the purchaser or purchasers thereof and
associates, if any, may form a corporation under the first chapter
of this title, for the purpose of acquiring, owning, maintaining
and operating the road so purchased, as if such road were the road
intended to be constructed by the corporation; and, when such
charter has been filed, the new corporation shall have the powers
and privileges then conferred by the laws of this State upon
chartered railroads, including the power to construct and extend.
The property and franchises so purchased shall be charged with and
subject to the payment of all subsisting liabilities and claims for
death and personal injuries sustained in the operation of the
railroad by the sold out company and by any receiver thereof and for
loss of and damage to the property sustained in the operation of the
railroad by the sold out company and by any receiver thereof and for
the current expenses of such operation including labor, supplies
and repairs, provided that all such subsisting claims and
liabilities shall have accrued within two years prior to the
beginning of the receivership resulting in the sale of such
property and franchises, or within two years prior to the sale, if
said property and franchises be sold otherwise than under
receivership proceedings, unless suit was pending on such claims
and liabilities when the receiver was appointed, or when the sale
was made; in which event claims and liabilities on which suits were
so pending shall be protected hereby as though accruing within two
years; and provided, that by such purchase and organization no
right shall be acquired in conflict with the present Constitution
and laws, in any respect, nor shall the main track of any railroad
once constructed and operated be abandoned or moved. The amount of
stock and bonds which may be issued by said new corporation, as well
as the manner of their issuance, shall be fixed, determined and
regulated by the Railroad Commission of Texas at its discretion,
save that the total encumbrance secured by lien on said property and
franchises shall not exceed the amount allowed by Article 6521 of
the Revised Statutes of Texas. This and the preceding article shall
not be construed to in anywise repeal or impair the provisions of
Chapter 12 of this Title except in so far as the same may be changed
thereby.
Acts 1889, p. 19; Acts 4th C.S. 1910, p. 120; G.L. vol. 9, p. 1047.
Article: 6418b 6419 6419a 6419b 6419c 6420 6421 6422 6423 6424 6425 6426 6427 6428 6429
Last modified: August 10, 2007
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