(610 ILCS 20/1) (from Ch. 114, par. 35)
Sec. 1.
That every railroad company
organized under any law or laws of this state, in force before the first
day of March, A. D. 1872, is hereby empowered from time to time to
borrow such sums of money as may be necessary for completing,
furnishing, improving or operating any such railroad, and to issue and
dispose of its bonds for any amount so borrowed, and to mortgage its
corporate property and franchises to secure the payment of any debt
contracted by such corporation for the purposes aforesaid; but the
concurrence of the holders of two-thirds in amount of the stock of such
corporation--to be expressed in the manner hereinafter provided--shall be
necessary to the validity of any such mortgage; and the order or
resolution for such mortgage shall be recorded as provided in this act;
and the directors of such corporation shall be empowered, in pursuance
of any such order or resolution, to confer on any holder of any bond,
for money so borrowed as aforesaid, the right to convert the principal
due or owing thereon into stock of such corporation at any time not
exceeding ten years after the date of such bond, under such regulation
as may be provided in the by-laws of such corporation.
(Source: Laws 1873, p. 141.)
|