§ 62-111. Transfers of franchises; mergers, consolidations and combinations of public utilities.
§ 62‑111. Transfers of franchises; mergers, consolidations and combinations of publicutilities.
(a) No franchise now existing or hereafter issued under theprovisions of this Chapter other than a franchise for motor carriers ofpassengers shall be sold, assigned, pledged or transferred, nor shall controlthereof be changed through stock transfer or otherwise, or any rightsthereunder leased, nor shall any merger or combination affecting any publicutility be made through acquisition or control by stock purchase or otherwise,except after application to and written approval by the Commission, whichapproval shall be given if justified by the public convenience and necessity.Provided, that the above provisions shall not apply to regular trading inlisted securities on recognized markets.
(b) No certificates issued under the provisions of this Chapterfor motor carriers of passengers shall be sold, assigned, pledged, transferred,or control changed through stock transfer or otherwise, or any rightsthereunder leased, nor shall any merger or combination affecting any motorcarrier of passengers be made through acquisition of control by stock purchasesor otherwise, except after application to and written approval by theCommission as in this section provided, provided that the above provisionsshall not apply to regular trading in listing securities on recognized markets.The applicant shall give not less than 10 days' written notice of suchapplication by registered mail or by certified mail to all connecting andcompeting carriers. When the Commission is of the opinion that the transactionis consistent with the purposes of this Chapter the Commission may, in theexercise of its discretion, grant its approval, provided, however, that whensuch transaction will result in a substantial change in the service andoperations of any motor carrier of passengers party to the transaction, or willsubstantially affect the operations and services of any other motor carrier,the Commission shall not grant its approval except upon notice and hearing asrequired in G.S. 62‑262.1 for bus companies upon an application for anoriginal certificate. In all cases arising under the subsection it shall be theduty of the Commission to require the successor carrier to satisfy the Commissionthat the operating debts and obligations of the seller, assignor, pledgor,lessor or transferor, including taxes due the State of North Carolina or anypolitical subdivision thereof are paid or the payment thereof is adequatelysecured. The Commission may attach to its approval of any transaction arisingunder the section such other conditions as the Commission may determine arenecessary to effectuate the purposes of this Article.
(c) No sale of a franchise for a motor carrier of householdgoods shall be approved by the Commission until the seller shall have filedwith the Commission a statement under oath of all debts and claims against theseller, of which such seller has any knowledge or notice, (i) for grossreceipts, use or privilege taxes due or to become due the State, as provided inthe Revenue Act, (ii) for wages due employees of the seller, other thansalaries of officers and in the case of motor carriers, (iii) for unremittedC.O.D. collections due shippers, (iv) for loss of or damage to goodstransported, or received for transportation, (v) for overcharges on propertytransported, and, (vi) for interline accounts due other carriers, together witha bond, if required by the Commission, payable to the State, executed by asurety company authorized to do business in the State, in an amount double theaggregate of all such debts and claims conditioned upon the payment of the samewithin the amount of such bond as the amounts and validity of such debts andclaims are established by agreement of the parties, or by judgment. Thissubsection shall not be applicable to sales by personal representatives ofdeceased or incompetent persons, receivers or trustees in bankruptcy undercourt order.
(d) No person shall obtain a franchise for the purpose of transferringthe same to another, and an offer of such transfer within one year after thesame was obtained shall be prima facie evidence that such certificate wasobtained for the purpose of sale.
(e) The Commission shall approve applications for transfer ofmotor carrier franchises made under this section upon finding that said sale,assignment, pledge, transfer, change of control, lease, merger, or combinationis in the public interest, will not adversely affect the service to the publicunder said franchise, will not unlawfully affect the service to the public byother public utilities, that the person acquiring said franchise or controlthereof is fit, willing and able to perform such service to the public undersaid franchise, and that service under said franchise has been continuouslyoffered to the public up to the time of filing said application or in lieuthereof that any suspension of service exceeding 30 days has been approved bythe Commission as provided in G.S. 62‑112(b)(5). Provided, however, theCommission shall approve, without imposing conditions or limitations,applications for the transfer of a bus company franchise made under thissection upon finding that the person acquiring the franchise or control of thefranchise is fit, willing and able to perform services to the public under thatfranchise. (1947, c. 1008, s.22; 1949, c. 1132, s. 20; 1953, c. 1140, s. 3; 1957, c. 1152, s. 10; 1961, c.472, ss. 6, 7; 1963, c. 1165, s. 1; 1967, c. 1202; 1985, c. 676, ss. 10, 11;1995, c. 523, s. 2.)