N.J.S.A. 48:3-5 — Capitalizing franchises or contracts for consolidation

48:3-5. Capitalizing franchises or contracts for consolidation No public utility shall: a. Capitalize any franchise to be a corporation; b. Capitalize any franchise in excess of the amount, exclusive of any tax or annual charge, actually paid to the state or any political subdivision thereof as the consideration of the franchise; c. Capitalize any contract for consolidation, merger or lease; or d. Issue any bonds or other evidence of indebtedness against or as a lien upon any contract for consolidation, merger or lease. Nothing herein shall prevent the issuance of stock, bonds or other evidence of indebtedness, subject to the approval of the board, by any lawfully merged or consolidated public utilities not in contravention of this section.

This is the verbatim text of N.J.S.A. 48:3-5, retrieved from the New Jersey Legislature's public statute corpus. Statutes are amended periodically — for the most current version, check the external source link above. Kyzer is not a law firm and this page is not legal advice.