70 - Transfer of franchises or stocks.

§ 70. Transfer  of  franchises  or  stocks.  1.  No gas corporation or  electric 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. Notwithstanding  the foregoing, any transfer or lease with an original cost of  (a)  less  than  one  hundred  thousand  dollars  proposed  by  a  gas  or electric  corporation having annual  gross  revenues  in  excess  of  two  hundred  million  dollars  or (b) less than twenty-five thousand dollars proposed  by a gas or electric corporation having annual gross  revenues  of  less  than  two  hundred  million  dollars  shall  be  effective  without  the  commission's written consent within ninety days after  such  corporation  notifies  the commission that it plans to complete the transfer or lease  and submits a description of the transfer or lease;  provided,  however,  that  the  commission  may  determine within such ninety days after such  notification and submission that the public interest requires its review  and written consent.    2. The permission and approval of the commission, to the exercise of a  franchise  under  section  sixty-eight  of  this  article,  or  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  gas  corporation  or  electric  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, in this  state  or  any other state, or proposing to operate or operating under a  franchise from the same or any other  municipality,  neither  shall  any  street  railroad  corporation acquire the stock or bonds of any electric  corporation, 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 gas corporation or electric corporation or street  railroad corporation, shall purchase or acquire, take or hold, more than  ten per centum of the voting capital stock issued by any gas corporation  or electric 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 gas corporation or  electric  corporation  may with the consent of the commission acquire and hold the  remainder of the  voting  capital  stock  of  such  gas  corporation  or  electric  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 gas corporation or electric 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  herein  contained  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 anynew 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  gas  corporation,   or  electric  corporation,  or  shall  be  recognized  as  effective for any purpose.    7. No consent, permission or approval otherwise  required  under  this  section shall be necessary for the sale of the franchise, works, system,  stocks  or  bonds by a gas or electric corporation to a duly constituted  authority of the state.