752                               LAWS OF MARYLAND                        [CH. 441

Prohibitions
23. (Franchises, Contracts, Securities.)

(a)  Hereafter, no public service company shall exercise any fran-
chise granted by law except to the extent authorized by the com-
mission.

(b)  Hereafter, no public service company shall, without the prior
authorization of the commission:

(1)  Assign, lease or transfer any franchise or right thereunder or
enter into any agreement or contract materially affecting such fran-
chise or right;

(2)  Purchase, acquire, take or hold any part of the capital stock
of any other public service company-? ORGANIZED OR EXISTING
UNDER OR BY VIRTUE OF THE LAWS OF THIS STATE;

(3)  Abandon or discontinue in whole or in part the exercise of any
franchise or right;

(4) Assume or guarantee any obligation or liability in any capacity
or by any means in respect of stocks, bonds, securities, notes or other
evidence of indebtedness of any person, payable in whole or in part
more than twelve months after the date thereof. This subparagraph
(4) shall apply only to corporations organized or existing or here-
after incorporated under or by virtue of the laws of this state.

(5) Issue stocks, bonds, securities, notes, or any other evidence of
indebtedness payable in whole or in part more than twelve months
after date of issuance. Such stocks, etc. shall be issued in accordance
with sections 58 and 59 of this article. This subparagraph (5) shall
apply only to corporations organized or existing or hereafter incor-
porated under or by virtue of the laws of this state.

(c)  Subject to the additional requirements set forth in the follow-
ing subsections of this section, the commission may authorize any of
the acts enumerated in the preceding subsection (b), upon a finding
that to do so is consistent with the public convenience and necessity.
No authority granted in accordance with this subsection, however,
shall revive any lapsed franchise or validate any invalid franchise
or enlarge or add to the powers and privileges in any franchise, or
waive any forfeiture.

(d)  No authority shall be granted under subsection (a) of this
section unless the company has filed with the com/mission a certified
copy of its charter and a statement, under oath, of its president and
secretary, that it has received the required consent of the proper
local authorities.

(e)  No public service company shall take, hold, or acquire any
part of the capital stock of any public service company of the same
class, organized or existing under or by virtue of the laws of this
state, without prior authorization by the commission. No stock
corporation of any description (except, with the authorization of the
commission, a company of the same class) shall take, hold or acquire
more than ten per cent of the total capital stock of any public service
company organized or existing under or by virtue of the laws of this
state, unless such stock is to be taken as collateral security and the
commission approves of its being so taken; and no such public service
company shall be party to the violation of this subsection. for the