Effective 28 Aug 1996

387.290. Power of division of motor carrier and railroad safety to require account of disposition of proceeds of sales of stock, bonds — if issued without authority, void — penalties and forfeitures — state not liable. — 1. The division of motor carrier and railroad safety shall have the power to require motor carriers to account for the disposition of the proceeds of all sales of stocks, bonds, notes and other evidences of indebtedness in such form and detail as it may deem advisable and to establish such rules and regulations as it may deem reasonable and necessary to insure the disposition of such proceeds for the purpose or purposes specified in its order.

2. All stock, and every bond, note or evidence of indebtedness, of a motor carrier issued without an order of the division authorizing the same then in effect shall be void, and likewise all stock, and every bond, note or other evidence of indebtedness, of a motor carrier issued with the authorization of the division, but not conforming in its provisions to the provisions, if any, which it is required by the order of authorization of the division to contain, shall be void; but no failure in any other respect to comply with the terms or conditions of the order of authorization of the division shall render void any stock, or any bond, note or other evidence of indebtedness, except as to a corporation or person taking the same otherwise than in good faith and for value and without actual notice.

3. Every motor carrier, which directly or indirectly issues or causes to be issued, any stock or stock certificates, or bond, note or other evidence of indebtedness, in nonconformity with the order of the division authorizing the same, or contrary to the provisions of this chapter, or of the constitution of the state, or which applies the proceeds from the sale thereof, or any part thereof, to any purpose other than the purpose or purposes specified in the division's order, as herein provided, or to any purpose specified in the division's order in excess of the amount in said order authorized for such purpose, is subject to a penalty of not less than five hundred dollars nor more than twenty thousand dollars for each offense.

4. Every officer, agent or employee of a motor carrier, and every other person who knowingly authorizes, directs, aids in, issues or executes, or causes to be issued or executed, any stock, or bond, note or other evidence of indebtedness, in nonconformity with the order of the division authorizing the same, or contrary to the provisions of this chapter, or of the constitution of this state, or who, in any proceeding before the division, knowingly makes any false statement or representation, or with knowledge of its falsity files or causes to be filed with the division any false statement or representation which said statement or representation so made, filed or caused to be filed may tend in any way to influence the division to make an order authorizing the issue of any stock, or any bond, note or other evidence of indebtedness, or which results in procuring from the division the making of any such order, or who, with knowledge that any false statement or representation was made to the division in any proceeding, tending in any way to influence the division to make such order, issues or executes or negotiates, or causes to be issued, executed or negotiated any such stock, or bond, note or other evidence of indebtedness, or who directly or indirectly, knowingly applies, or causes or assists to be applied the proceeds or any part thereof, from the sale of any stock, or bond, note or other evidence of indebtedness, to any purpose not specified in the division's order, or to any purpose specified in the division's order in excess of the amount authorized for such purpose, or who, with knowledge that any stock, or bond, note or other evidence of indebtedness, has been issued or executed in violation of any of the provisions of this chapter, negotiates, or causes the same to be negotiated, shall be deemed guilty of a felony, and upon conviction, shall be punished by a fine of not less than one thousand dollars nor more than five thousand dollars, or by imprisonment for not less than two years nor more than five years, or by both such fine and imprisonment.

5. No provision of this chapter, and no deed or act done or performed under or in connection therewith, shall be held or construed to obligate the state of Missouri to pay or guarantee, in any manner whatsoever, any stock, or bond, note or other evidence of indebtedness, authorized, issued or executed under the provisions of this chapter.

6. All stocks, and every bond, note or other evidence of indebtedness issued by any motor carrier after this chapter takes effect, upon the authority of any articles of incorporation or amendments thereto or vote of the stockholders or directors filed, taken or had, or other proceedings taken or had, previous to the taking effect of this chapter, shall be void, unless an order of the division authorizing the issue of such stock, or bonds, notes, or other evidences of indebtedness shall have been obtained from the division prior to such issue. The division may by its order impose such condition or conditions as it may deem reasonable and necessary.

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(RSMo 1939 § 5636, A.L. 1996 S.B. 780)

Prior revisions: 1929 § 5180; 1919 § 10468