Chapter 299: Corporate Mortgages and Reorganization After Foreclosure

A corporation which may lawfully mortgage its property may also include its franchises in such mortgage.

Except as otherwise provided, corporate mortgage security for bonded or other indebtedness may include after-acquired property of the following classes: Real estate, franchises, fixtures, machinery and rolling stock.

Such mortgage of after-acquired property shall not affect any builders' or other lien.

The foreclosure of a mortgage of any corporation organized under the laws of this state shall inure to the benefit of the holders of bonds, coupons and other claims secured thereby, and whenever the franchises of the corporation are included in the mortgage with power of sale and foreclosure is made by decree of court, and the property, rights and franchises are sold thereunder, the purchasers of the property, rights and franchises of such corporation, their successors and assigns, shall be a corporation as of the date of foreclosure for all purposes, and they are vested with all the rights, powers, privileges, duties and liabilities of the original corporation under its charter or the general law.

The trustee under such mortgage may, by auction sale, convey to said purchaser or to said new corporation all the right, title and interest under the mortgage and by virtue of the foreclosure thereof, and thereupon said trustees shall be discharged.

The new corporation may call its first meeting in the manner provided for calling the first meeting of the original corporation, or any such purchaser may call the same by publication in some newspaper published in the city of Concord.

It may use the old corporate name, or adopt a new one, by which it shall thereafter be known; may issue capital stock, as the directors may determine, in an amount not exceeding the purchase price at the foreclosure sale; shall file a certificate with the secretary of state, signed by its treasurer and a majority of its directors, setting forth the sale under foreclosure proceedings, the amount of capital as fixed at the first meeting and the corporate name adopted.