§ 62-290. Corporations whose property and franchises sold under order of court or execution.
Article 13.
Reorganization of Public Utilities.
§ 62‑290. Corporations whose property andfranchises sold under order of court or execution.
When the property and franchises of a public utility corporation aresold under a judgment or decree of a court of this State, or of the districtcourt of the United States, or under execution, to satisfy a mortgage debt orother encumbrance thereon, such sale vests in the purchaser all the right,title, interest and property of the parties to the action in which suchjudgment or decree was made, to said property and franchises, subject to allthe conditions, limitations and restrictions of the corporation; and thepurchaser and his associates thereupon become a new corporation, by such nameas they select, and they are the stockholders in the ratio of the purchasemoney by them contributed; and are entitled to all the rights and franchisesand subject to all the conditions, limitations and penalties of the corporationwhose property and franchises have been so sold. In the event of the sale of arailroad in foreclosure of a mortgage or deed of trust, whether under a decreeof court or otherwise, the corporation created by or in consequence of the salesucceeds to all the franchises, rights and privileges of the originalcorporation only when the sale is of all the railroad owned by the company anddescribed in the mortgage or deed of trust, and when the railroad is sold as anentirety. If a purchaser at any such sale is a corporation, such purchasingcorporation shall succeed to all the properties, franchises, powers, rights,and privileges of the original corporation: Provided, that this shall notaffect vested rights and shall not be construed to alter in any manner thepublic policy of the State now or hereafter established with reference totrusts and contracts in restraint of trade. (Code, ss. 697, 698; 1897, c. 305; 1901, c. 2, s. 99; Rev., s. 1238;1913, c. 25, s. 1; 1919, c. 75; C.S., s. 1221; 1955, c. 1371, s. 2; 1963, c.1165, s. 1.)