NY Pub Serv L § 89-H (2021)
2021 New York Laws PBS - Public Service Article 4-B - Provisions Relating to Water 89-H - Transfer of Franchises or Stocks.

§ 89-h. Transfer   of   franchises   or   stocks.  1.  No  water-works   corporation shall transfer or lease its franchise, works  or  system  or   any  part  of  such  franchise,  works  or system to any other person or   corporation or contract for the  operation  of  its  works  and  system,   without the written consent of the commission.2.  The  permission  and approval of the commission to the assignment,   transfer or lease of  a  franchise  under  this  section  shall  not  be   construed  to  revive  or validate any lapsed or invalid franchise or to   enlarge or add to the powers and privileges contained in  the  grant  of   any franchise or to waive any forfeiture.3. No water-works corporation shall directly or indirectly acquire the   stock or bonds of any other corporation incorporated for, or engaged in,   the  same  or  a  similar business, or proposing to operate or operating   under a franchise from  the  same  or  any  other  municipality,  unless   authorized so to do by the commission.4.  Save  where  stock shall be transferred or held for the purpose of   collateral security only with the consent of the commission empowered by   this  chapter  to  give  such  consent,  no  stock  corporation  of  any   description,  domestic  or  foreign, company, including, but not limited   to, a limited liability company, association, including  a  joint  stock   association,  partnership, including a limited liability partnership, or   person, other than a water-works corporation, shall purchase or acquire,   take or hold, more than ten per  centum  of  the  voting  capital  stock   issued  by any water-works corporation organized or existing under or by   virtue of the laws of this state, except that a corporation now lawfully   holding a majority of  the  voting  capital  stock  of  any  water-works   corporation  may with the consent of the commission acquire and hold the   remainder of the voting capital stock of such water-works corporation or   any portion thereof. Provided, that with the consent of such  commission   and upon and subject to such terms and conditions as such commission may   fix  and  impose,  any  such  stock  corporation,  company, association,   partnership or person may acquire, take  and  hold  more  than  ten  per   centum  of  the  voting  capital  stock  of any water-works corporation,   organized or existing under or by virtue of the laws of this state.5. No consent shall be given by the commission to the  acquisition  of   any  stock  in  accordance  with  this section unless it shall have been   shown that such acquisition is in the public interest. Nothing contained   in this section shall be construed to prevent the holding of  any  stock   heretofore  lawfully  acquired,  nor  to  prevent, upon the surrender or   exchange of such stock pursuant to a reorganization plan, the  purchase,   acquisition, taking or holding of a proportionate amount of stock of any   new  corporation  organized  to take over, at foreclosure or other sale,   the property of any corporation whose stock has been thus surrendered or   exchanged; but the proportion of the voting capital  stock  of  the  new   corporation   held   by   a  stock  corporation,  company,  association,   partnership or person and acquired  by  it  by  any  such  surrender  or   exchange of stock shall not without the consent of the commission exceed   the  proportion  of  the  voting  capital stock held by it in the former   corporation.6. Every contract, assignment, transfer or agreement for  transfer  of   any  stock  by  or through any person or corporation to any corporation,   company,  association,  partnership  or  person,  in  violation  of  any   provision  of  this  chapter shall be void and of no effect, and no such   transfer or assignment  shall  be  made  upon  the  books  of  any  such   water-works  corporation,  or  shall  be recognized as effective for any   purpose.