(220 ILCS 5/6-103) (from Ch. 111 2/3, par. 6-103)
Sec. 6-103.
The capitalization of a public utility formed by a merger or
consolidation of two or more corporations shall be subject to the approval
of the Commission, but in no event shall the Commission approve a
capitalization exceeding the sum of the capital stock of the corporations
so consolidated, at the par value thereof, and any additional sum actually
paid in cash for improvements; nor shall any contract for consolidation or
lease be capitalized in the stock of any corporation whatever; nor shall
any corporation hereafter issue any bonds against or as a lien upon any
contract for consolidation or merger. In any reorganization of a public
utility, resulting from forced sale, or in any other manner, the amount of
capitalization, including therein all stocks and stock certificates and
bonds, notes and other evidences of indebtedness, shall be such as is
authorized by the Commission, which in making its determination, shall not
exceed the fair value of the property involved. Issuance of stocks and
stock certificates, and bonds, notes or other evidences of indebtedness in
connection with any consolidation, merger, or reorganization shall be
subject to all the terms of Sections 6-101 and 6-102 of this Act.
(Source: P.A. 84-617.)
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