Whenever the railroad lands or other property of any railroad corporation created by or under any law of the United States or of the state or the part of the railroad, lands or other property of any such corporation situated in the state is sold by virtue of a mortgage or deed of trust or pursuant to the judgment or decree of any court of competent jurisdiction or by virtue of any execution issued thereon, the purchasers at any such sale may acquire and become vested with the property sold and may acquire any other property and franchises, rights and powers of the corporation in this state or elsewhere. Purchasers may associate with themselves any number of persons and with their associates may become a corporation with power to own, operate, exercise and enjoy the properties, franchises, rights and powers acquired by the purchasers upon making, acknowledging and filing in the office of the secretary of state a certificate in which the purchasers describe by name and by reference to the charter or law under which it was organized, the corporation whose property or part of whose property the purchasers have acquired, the court by whose authority the sale was made, with the date of the judgment or decree authorizing or directing the sale, a brief description of the property sold and also the following particulars:

A. the name of the new corporation intended to be formed by the filing of the certificate;

B. the maximum amount of its capital stock and the number of shares into which it is divided, and specifying the classes thereof, whether common or preferred, and the amount of and rights pertaining to each class; and

C. the number of directors, not less than three nor more than fifteen, who shall manage the affairs of the new corporation and the names and post office addresses of the directors for the first year.

History: Laws 1897, ch. 19, § 1; C.L. 1897, § 3922; Code 1915, § 4720; C.S. 1929, § 116-501; 1941 Comp., § 74-501; 1953 Comp., § 69-5-1; 2013, ch. 75, § 43.

The 2013 amendment, effective July 1, 2013, required that purchasers of railroad assets file a certificate with the secretary of state describing their corporation; added the title of the section; and in the second sentence, after "filing in the office of the", deleted "state corporation commission" and added "secretary of state".

Am. Jur. 2d, A.L.R. and C.J.S. references. — 65 Am. Jur. 2d Railroads §§ 163 to 175.

Court's power to authorize discontinuation of railroad upon foreclosing mortgage on its plant, 8 A.L.R. 238.

74 C.J.S. Railroads §§ 328 to 338.