§ 39-6-22 - Liability of trustees and bondholders operating road. - Rhode Island Statutes

SECTION 39-6-22

   § 39-6-22  Liability of trustees andbondholders operating road. – Whenever any railroad corporation shall mortgage or convey in trust itsrailroad or railroad property, or any part thereof, to trustees, for thesecurity of its bondholders or other creditors, or for the security of anyclass of bondholders or other creditors, and the trustees shall have takenpossession of any railroad or railroad property, in pursuance of any authoritycontained in their mortgage or deed of trust, and shall take charge of andoperate the railroad or railroad property for the benefit of the creditors forwhom the trust was created, the trustees shall not, after the assent of thebondholders as hereinafter provided, be personally liable for any cause orinjury arising from the operation of the road, or while they may operate thesame, except for their willful mismanagement or for any contracts made by themas trustees; but all railroad property shall, the bondholders having assentedthereto, be liable for the acts and proceedings of the trustees in theexecution of their trusts, to the extent of the interest of the trustees of thebondholders or creditors, for whose benefit the trustees may act, and anyaction or other proceeding therefor shall be brought against the trustees,describing them as such.