Public Service Corporations - Capital stock - Indebtedness

Public Service Corporations as defined by Section 34, Article

IX, of the Constitution of the State of Oklahoma, may, by proper

corporate action, and for lawful corporate purposes, borrow, from

time to time, such sums of money at such rates of interest and upon

such terms as may be deemed necessary or expedient and the total

amount of indebtedness of such corporation so created shall not in

any way be limited by the amount of their subscribed capital stock,

nor shall the total of said indebtedness affect in any way the right

of such corporations to reduce or increase their capital stock. Such

corporations shall have the power to execute trust deeds, or

mortgages, or both, as the occasion may require, on any of its

property, or parts thereof, constructed or in process of

construction, for amounts borrowed or owing by the corporation and

therein to make provisions granting, transferring, or mortgaging

their railroad track, right-of-way, depot ground, rights,

privileges, franchise, immunities, exemptions, machine houses, power

houses, rolling stock, transmission lines, furniture, tools,

implements, appendages and appurtenances used in connection with

such corporation's business in any manner whatever, then belonging

to the corporation or which may thereafter belong to it, as security

for any bonds or evidence of debt therein mentioned, in such manner

as the corporation or directors shall think proper, and such

instruments shall fully convey the same or so much thereof as shall

be therein described. In case of sale by virtue of any such trust

deed or upon foreclosure of any such mortgage, the persons acquiring

title under such sale and their associates, successors and assigns,

Oklahoma Statutes - Title 66. Railroads Page 8

or such corporation as they organize, according to law, with all the

powers conferred upon corporations by this article, shall thereafter

have, exercise and enjoy all such described grants which were

purchased at such sale, including all rights, privileges, grants,

franchises, immunities and advantages mentioned in such instruments

which were possessed by such corporation making the same or

contracting such debt, so far as the same relate or appertain to

that portion of property granted or mortgaged and purchased at such

sale and no further, as fully and absolutely in all respects as such

corporation, its shareholders, officers and agents might have done

if such sale had not taken place. And whenever the person so

acquiring title under any such sale shall own or represent a

majority in amount of the bonds or other evidence of debt secured by

any such trust deed or mortgage, and shall also include the persons

who owned at the time of the sale, a majority in amount of the

capital stock of such mortgage or corporation, such purchasers and

such corporation as they shall organize as aforesaid, shall also

have, possess and enjoy any exemption, privileges or immunity

previously granted by any law to such former corporation relating to

any of the property so acquired, to the same extent as if such

latter corporation had been named in such law as the grantee

thereof.

R.L. 1910, § 1383; Laws 1923-24, c. 90, p. 108, § 1, emerg. eff.

March 22, 1924.