40-813. Organization of new corporation on sale at foreclosure; powers
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/az/title-40/40-813A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. When property of any railroad corporation located in this state is sold by virtue of a mortgage or deed of trust, pursuant to a judgment, or by virtue of an execution, the purchasers at the sale may acquire the property sold, together with other property and franchises of the corporation in this state, or elsewhere. The purchasers may become a corporation, with power to own, operate and enjoy the properties and franchises acquired by the purchase upon filing and recording articles of incorporation as a railroad corporation.
The purchasers shall state in the articles the corporation whose property or part of whose property they have acquired, the court by whose authority the sale was made, the date of the judgment or decrees authorizing or directing the sale, a brief description of the property sold, and the plan or agreement entered into in anticipation of the formation of the new corporation and pursuant to which the purchase was made.
B. Such corporation shall succeed to the rights, privileges and franchises of the corporation whose property it purchased, and shall be subject to such liabilities, regulations and restrictions, and possess such rights, as are granted or imposed by law upon other similar corporations incorporated under the laws of this state.