N.Y. Public Service Law § 89-g: Reorganization

§ 89-g. Reorganization. 1. Reorganizations of water-works

corporations pursuant to sections ninety-six and ninety-seven of the

stock corporation law and such other statutes as may be enacted from

time to time shall be subject to the supervision and control of the

commission, and no such reorganization shall be had without the

authorization of such commission.

2. Upon all such reorganizations the amount of capitalization,

including therein all stocks and bonds and other evidences of

indebtedness, shall be such as is authorized by the commission, which,

in making its determination shall not exceed the fair value of the

property involved, taking into consideration its original cost of

construction, duplication cost, present condition, earning power at

reasonable rates and all other relevant matters and any additional sum

or sums as shall be actually paid in cash, provided, however, that the

commission may make due allowance for discount of bonds. Any

reorganization agreement before it becomes effective shall be amended so

that the amount of capitalization shall conform to the amount authorized

by the commission.