764                               LAWS OF MARYLAND                        [CH. 441

after the date of issuance, if, and only if, it finds that such issuance
is reasonably required for (i) the acquisition by the issuing company
of property or (ii) the construction, completion, extension or im-
provement of its facilities, or (in) the discharge or lawful refunding
of its obligations, or (iv) the maintenance or improvement of service,
or (v) the reimbursement of moneys (not secured by or obtained from
such issuance) expended for any of the purposes enumerated in
items (i) through (iiii) of this subsection, within five years next
prior to the filing of an application with the commission for such
reimbursement, or (vi) such issuance may also be authorized by the
commission, in its discretion, for the purpose of making the aggregate
capitalization of the company conform to the value of its property.

(b)  Any authorization by the commission pursuant to the preced-
ing subsection shall be by order, shall specify the amount of the
issuance authorized, and shall recite that such issuance is reasonably
required for one or more of the purposes enumerated in the preceding
subsection, which shall be specifically designated.

(c)  Nothing in this section shall prevent any public service com-
pany from issuing, without the prior consent of the commission,
notes for proper corporate purposes, not otherwise in violation of
law, payable at periods totaling not more than twelve months after
date of issuance; but no such notes shall be refunded directly or
indirectly, in whole or in part, by any evidence of indebtedness run-
ning for more than twelve months, except in accordance with the two
previous subsections.

(d)  Notwithstanding the preceding subsections of this section, the
commission is empowered to approve the issuance of such stocks,
bonds, securities, notes, or other evidences of indebtedness in such
amounts in connection with the organization of a new public service
company by the purchasers of the franchises or property of any
public service company sold under judicial proceedings, mortgage
or deed of trust, as may in the judgment of the commission be neces-
sary fully to protect the rights and equities of the holders of the
securities of the predecessor company.

59. (Limitations on Capitalization.)

(a)  No public service company shall be permitted to capitalize or
issue any bonds against or as lien upon any contract for consolidation,
merger or lease, or to capitalize any franchise of any character, or
right to own any such franchise, in excess of the amount (exclusive
of any tax or annual charge) actually paid to the State or a political
subdivision as consideration for the grant of such franchise or right.

(b)  The stated capital (as defined in article 28, the general cor-
poration law) of a public service company formed by the merger or
consolidation of two or more corporations shall not exceed merely
by virtue of such merger or consolidation the stated capital of the
corporations so merged or consolidated, or such stated capital of the
merged or consolidated corporations plus any additional sum paid
in cash.

(c)  Notwithstanding any provision in this article to the contrary,
the commission may approve the capitalization of tangible and
intangible property (other than the franchise to be a corporation)
of any newly chartered public service corporation or any public
service corporation organized or reorganized by the purchasers of