§ 39-6-22. Liability of trustees and bondholders operating road. Whenever any railroad corporation shall mortgage or convey in trust its railroad or railroad property, or any part thereof, to trustees, for the security of its bondholders or other creditors, or for the security of any class of bondholders or other creditors, and the trustees shall have taken possession of any railroad or railroad property, in pursuance of any authority contained in their mortgage or deed of trust, and shall take charge of and operate the railroad or railroad property for the benefit of the creditors for whom the trust was created, the trustees shall not, after the assent of the bondholders as hereinafter provided, be personally liable for any cause or injury arising from the operation of the road, or while they may operate the same, except for their willful mismanagement or for any contracts made by them as trustees; but all railroad property shall, the bondholders having assented thereto, be liable for the acts and proceedings of the trustees in the execution of their trusts, to the extent of the interest of the trustees of the bondholders or creditors, for whose benefit the trustees may act, and any action or other proceeding therefor shall be brought against the trustees, describing them as such.
History of Section. (G.L. 1896, ch. 208, § 22; G.L. 1909, ch. 259, § 22; G.L. 1923, ch. 303, § 22; G.L. 1938, ch. 486, § 18; G.L. 1956, § 39-6-22.)
Copyright ©2024 LegalFix. All rights reserved. LegalFix is not a law firm, is not licensed to practice law, and does not provide legal advice, services, or representation. The information on this website is an overview of the legal insurance products you can purchase—or that may be provided by your employer as an employee benefit or by your credit union or other membership group as a membership benefit.
LegalFix provides its members with access to legal services through a network of provider law firms. LegalFix, its corporate entity, and its officers, directors, employees, agents, and contractors do not provide legal advice, services, or representation—directly or indirectly.
The articles and information on the site are not legal advice and should not be relied upon—they are for information purposes only. You should become a LegalFix member to get legal services from one of our provider law firms.
You should not disclose confidential or potentially incriminating information to LegalFix—you should only communicate such information to your provider law firm.
The benefits and legal services described in the LegalFix legal plans are not always available in all states or with all plans. See the legal plan Benefit Overview and the more comprehensive legal plan contract during checkout for coverage details in your state.
Use of this website, the purchase of legal insurance products, and access to the LegalFix network of provider law firms are subject to the LegalFix Terms of Service and Privacy Policy.
