2023 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.