Colorado § 40-20-102 - Powers of corporation.

§ 40-20-102. Powers of corporation.

(1) Every such corporation, in addition to the powers conferred in articles 101 to 117 of title 7, C.R.S., has the power:

(a) To lay out its road, not exceeding two hundred feet in width, and to construct the same; and for the purpose of cuttings and embankments to take as much more land as may be necessary for the proper construction and security of the railway; and to cut down any standing trees that may be in danger of falling or obstructing the railway, making proper compensation therefor;

(b) To cross, intersect, or connect its railway with any other railway;

(c) To connect at the state line with railroads of other states and territories;

(d) To receive and convey persons and property on its railway;

(e) To erect and maintain all buildings and stations, fixtures, and machinery necessary and convenient for the accommodation, and use of passengers, freights, and business interests or which may be necessary for the construction or operation of said railway;

(f) To regulate the time and manner in which passengers and property shall be transported and the compensation to be paid therefor;

(g) From time to time, to borrow such sums of money as may be necessary for completing, finishing, improving, or operating any such railway, and to issue and dispose of its bonds for any amount so borrowed, and to mortgage its corporate property and franchise to secure the payment of any debt contracted by such corporation for such purposes, in such manner as the shareholders representing a majority of the stock of any such corporation may direct;

(h) Notwithstanding any provision of law to the contrary, to invest in any of the following if such investment is consistent with sound investment policy:

(I) Any public-private initiative with the department of transportation, as defined in section 43-1-1201 (3), C.R.S.;

(II) Bonds issued for turnpikes in accordance with part 2 of article 3 of title 43, C.R.S.;

(III) Repealed.

(IV) Any other public-private initiative program for transportation system projects in Colorado authorized by law.

Source: G.L. § 301. G.S. § 336. R.S. 08: § 5411. C.L. § 2816. CSA: C. 139, § 2. CRS 53: § 116-1-2. C.R.S. 1963: § 116-1-2. L. 93: IP(1) amended, p. 866, § 45, effective July 1, 1994. L. 98: (1)(h) added, p. 447, § 9, effective August 5. L. 2005: (1)(h)(III) repealed, p. 290, § 42, effective August 8.

Cross references: For the legislative declaration contained in the 1998 act enacting subsection (1)(h), see section 1 of chapter 154, Session Laws of Colorado 1998.

ANNOTATION

The power is granted under this section to mortgage the corporate property as an entirety. Booth v. Cent. Sav. Bank, 58 Colo. 519, 146 P. 240 (1915).

Specific properties which may be mortgaged are not enumerated. Under this section the specific properties of a railroad company which may be mortgaged are not enumerated but the power is given "to mortgage its corporate property and franchise to secure the payment of any debt contracted by such corporation for the purposes" enumerated, and "in such manner as the shareholders representing a majority of the stock of any such corporation may direct." Booth v. Cent. Sav. Bank, 58 Colo. 519, 146 P. 240 (1915).

Section does not give right to operate trains without regard to the public interest. This section grants the right to regulate the time and manner in which passengers and property shall be transported over the lines of a railroad system, but this does not confer upon the company the unlimited right to operate its trains as it sees fit, without regard to the interest of the public. Colo. & S. Ry. v. State R. R. Comm'n, 54 Colo. 64, 129 P. 506 (1912).

When 200-foot limitation not applicable to condemnation by railroad. The general assembly did not intend the 200-foot width limitation of subsection (1)(a) to apply to the condemnation of private property under § 38-2-101 for the construction of a railroad's physical facilities (other than those required for the laying out of its road) which have a sufficiently direct functional relationship to the operations of the railroad to satisfy the public use requirement of § 15 of art. II, Colo. Const. Buck v. District Court, 199 Colo. 344, 608 P.2d 350 (1980).

A mortgage duly recorded creates a valid lien. A mortgage of railroad property in conformity with the statute governing mortgages of real estate, and duly recorded, creates a valid lien, though the statutes regulating chattel mortgages and the creation of liens upon chattel property are disregarded. Booth v. Cent. Sav. Bank, 58 Colo. 519, 146 P. 240 (1915).

Power to mortgage is a special grant and not general corporate power. The power given a railroad company to mortgage its property has always been, by virtue of a special grant as distinguished from the power invested in corporations generally. Booth v. Cent. Sav. Bank, 58 Colo. 519, 146 P. 240 (1915).

Railroad has right to locate its own stations. No statute requires that connected roads shall adopt joint stations, or that one railroad company shall stop at or make use of the station of another. Each company in the state has the legal right to locate its own stations, and, so far as statutory regulations are concerned, is not required to use any other. Atchison, T. & S. F. R. R. v. Denver & N. O. R. R., 110 U.S. 667 (1884).

Rolling stock may be included in the mortgage. Booth v. Cent. Sav. Bank, 58 Colo. 519, 146 P. 240 (1915).