{"parents":[{"StatuteId":2030062,"Type":"Title","Statute":"0N"},{"StatuteId":2030283,"Type":"Chapter","Statute":"17"}],"Previous":"16-8","Next":"17-1","StatuteId":2030283,"Statute":"0N-17","Type":"Chapter","CatchLine":"CORPORATIONS ","FilePath":null,"FileName":null,"Htmlpath":null,"Htmlfilename":null,"Title":0,"TitleLetter":"N","Chapter":17,"ChapterLetter":null,"Section":0,"SubSec":0,"SubSection":null,"Word":null,"Html":" \r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17 CORPORATIONS \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n
\r\n
\r\nARTICLE XVII\r\n\r\n
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\r\nCORPORATIONS\r\n\r\n
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\r\n\r\n\r\n 1.\r\n    \r\nSpecial corporation laws prohibited--State-controlled corporations excepted.\r\n\r\n
\r\n\r\n\r\n 2.\r\n    \r\nInvalidation of charters without bona fide organization and business.\r\n\r\n
\r\n\r\n\r\n 3.\r\n    \r\nLaws for benefit of corporation as conditioned on compliance with Constitutional\r\nprovision.\r\n\r\n
\r\n\r\n\r\n 4.\r\n    \r\nCorporations subject to eminent domain--Police power.\r\n\r\n
\r\n\r\n\r\n 5.\r\n    \r\nCasting of votes for directors or managers.\r\n\r\n
\r\n\r\n\r\n 6.\r\n    \r\nPlace of business and authorized agent required of foreign corporation.\r\n\r\n
\r\n\r\n\r\n 7.\r\n    \r\nBusiness to be expressed in charter--Real estate restricted.\r\n\r\n
\r\n\r\n\r\n 8.\r\n    \r\nStocks and bonds--Indebtedness increase.\r\n\r\n
\r\n\r\n\r\n 9.\r\n    \r\nLegislature's power to alter, revise, or annul corporate charters--Creation, renewal,\r\nor extension.\r\n\r\n
\r\n\r\n\r\n10.\r\n    \r\nLocal consent required for grant of street railroad right.\r\n\r\n
\r\n\r\n\r\n11.\r\n    \r\nConstruction and maintenance of telegraph lines--Controlling interest in competing\r\ncompany prohibited.\r\n\r\n
\r\n\r\n\r\n12.\r\n    \r\nRailroad corporations.\r\n\r\n
\r\n\r\n\r\n13.\r\n    \r\nMovable property of railroad corporation considered personalty--Execution and sale.\r\n\r\n
\r\n\r\n\r\n14.\r\n    \r\nConsolidation of railroad lines--Forfeiture of charter for evasion of provisions.\r\n\r\n
\r\n\r\n\r\n15.\r\n    \r\nRailways and rail companies declared public highways and common carriers--Regulation of rates.\r\n\r\n
\r\n\r\n\r\n16.\r\n    \r\nRight to construct and operate railroad--Passengers, tonnage, and cars.\r\n\r\n
\r\n\r\n\r\n17.\r\n    \r\nRate discrimination prevention.\r\n\r\n
\r\n\r\n\r\n18.\r\n    \r\nCompensation for private property taken for public use--Assessment of damages.\r\n\r\n
\r\n\r\n\r\n19.\r\n    \r\nCorporations defined.\r\n\r\n
\r\n\r\n\r\n20.\r\n    \r\nMonopolies and trusts prohibited--Combinations in restraint of trade--Legislative\r\npowers.\r\n\r\n
\r\n\r\n\r\n21.\r\n    \r\nCorporate or syndicate farming prohibited--Definitions--Restrictions.\r\n\r\n
\r\n\r\n\r\n22.\r\n    \r\nRestrictions--Application.\r\n\r\n
\r\n\r\n\r\n23.\r\n    \r\nLoss of qualification--Requalification or dissolution.\r\n\r\n
\r\n24.\r\n    \r\nAnnual report--Violations--Action and enforcement.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-1 Special corporation laws prohibited--State-controlled corporations excepted. \r\n\r\n\r\n\r\n
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\r\n    \r\n§ 1.\r\n \r\n\r\n\r\nSpecial corporation laws prohibited--State-controlled corporations excepted.\r\n \r\nNo\r\ncorporation shall be created or have its charter extended, changed or amended by special laws, except\r\nthose for charitable, educational, penal or reformatory purposes, which are to be and remain under\r\nthe patronage and control of the state; but the Legislature shall provide, by general laws, for the\r\norganization of all corporations hereafter to be created.
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\r\n\r\n\r\n History: Amendment proposed by SL 2012, ch 264, § 2 rejected Nov. 6, 2012.\r\n\r\n

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-2 Invalidation of charters without bona fide organization and business. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 2.\r\n \r\n\r\n\r\nInvalidation of charters without bona fide organization and business.\r\n \r\nAll existing\r\ncharters, or grants of special or exclusive privileges under which a bona fide organization shall\r\nnot have taken place and business been commenced in good faith at the time this Constitution\r\ntakes effect, shall thereafter have no validity.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-3 Laws for benefit of corporation as conditioned on compliance with Constitutional provision...\r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 3.\r\n \r\n\r\n\r\nLaws for benefit of corporation as conditioned on compliance with Constitutional\r\nprovision.\r\n \r\nThe Legislature shall not remit the forfeiture of the charter of any corporation now\r\nexisting nor alter or amend the same nor pass any other general or special law for the benefit of\r\nsuch corporation, except upon the condition that such corporation shall thereafter hold its charter\r\nsubject to the provisions of this Constitution.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-4 Corporations subject to eminent domain--Police power. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 4.\r\n \r\n\r\n\r\nCorporations subject to eminent domain--Police power.\r\n \r\nThe exercise of the right of\r\neminent domain shall never be abridged or so construed as to prevent the Legislature from taking\r\nthe property and franchises of incorporated companies and subjecting them to public use, the\r\nsame as the property of individuals; and the exercise of the police power of the state shall never\r\nbe abridged or so construed as to permit corporations to conduct their business in such manner as\r\nto infringe the equal rights of individuals or the general well-being of the state.
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\r\n\r\n\r\n History: Repeal proposed by SL 1975, ch 3, rejected Nov. 2, 1976.\r\n\r\n

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§ 5. Casting of votes for directors or managers. In all elections for directors or managers of a corporation, each member or shareholder may cast the whole number of his votes for one candidate, or distribute them upon two or more candidates, as he may prefer.

History: Repeal proposed by SL 2008, ch 1, § 2 rejected Nov. 4, 2008. Amendment proposed by SL 2012, ch 264, § 4 rejected Nov. 6, 2012; amendment proposed by SL 2023, ch 2, § 22, rejected Nov. 5, 2024.


\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-6 Place of business and authorized agent required of foreign corporation. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 6.\r\n \r\n\r\n\r\nPlace of business and authorized agent required of foreign corporation.\r\n \r\nNo foreign\r\ncorporation shall do any business in this state without having one or more known places of\r\nbusiness and an authorized agent or agents in the same upon whom process may be served.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-7 Business to be expressed in charter--Real estate restricted. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 7.\r\n \r\n\r\n\r\nBusiness to be expressed in charter--Real estate restricted.\r\n \r\nNo corporation shall\r\nengage in any business other than that expressly authorized in its charter, nor shall it take or hold\r\nany real estate except such as may be necessary and proper for its legitimate business.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-8 Stocks and bonds--Indebtedness increase. \r\n\r\n\r\n\r\n
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\r\n    \r\n§ 8.\r\n \r\n\r\n\r\nStocks and bonds--Indebtedness increase.\r\n \r\nNo corporation shall issue stocks or bonds\r\nexcept for money, labor done, or money or property actually received; and all fictitious increase of\r\nstock or indebtedness shall be void. The stock and indebtedness of corporations shall not be\r\nincreased except in pursuance of general law, nor without the consent of the persons holding the\r\nlarger amount in value of the stock first obtained, at a meeting to be held after sixty days notice given\r\nin pursuance of law.
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\r\n\r\n\r\n History: Repeal proposed by SL 2008, ch 1, § 3 rejected Nov. 4, 2008. Amendment proposed by\r\nSL 2012, ch 264, § 6 rejected Nov. 6, 2012.\r\n\r\n

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-9 Legislature's power to alter, revise, or annul corporate charters--Creation, renewal, or e...\r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 9.\r\n \r\n\r\n\r\nLegislature's power to alter, revise, or annul corporate charters--Creation, renewal, or\r\nextension.\r\n \r\nThe Legislature shall have the power to alter, revise or annul any charter of any\r\ncorporation now existing and revocable at the taking effect of this Constitution, or any that may\r\nbe created, whenever in their opinion it may be injurious to the citizens of this state, in such a\r\nmanner, however, that no injustice shall be done to the incorporators. No law hereafter enacted\r\nshall create, renew or extend the charter of more than one corporation.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-10 Local consent required for grant of street railroad right. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 10.\r\n \r\n\r\n\r\nLocal consent required for grant of street railroad right.\r\n \r\nNo law shall be passed by\r\nthe Legislature granting the right to construct and operate a street railroad within any city, town\r\nor incorporated village, without requiring the consent of the local authorities having the control\r\nof the street or highway proposed to be occupied by such street railroad.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-11 Construction and maintenance of telegraph lines--Controlling interest in competing company...\r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 11.\r\n \r\n\r\n\r\nConstruction and maintenance of telegraph lines--Controlling interest in competing\r\ncompany prohibited.\r\n \r\nAny association or corporation organized for the purpose, or any individual,\r\nshall have the right to construct and maintain lines of telegraph in this state and to connect the\r\nsame with other lines; and the Legislature shall by general law of uniform operation provide\r\nreasonable regulations to give full effect to this section. No telegraph company shall consolidate\r\nwith or hold a controlling interest in the stock or bonds of any other telegraph company owning a\r\ncompeting line, or acquire by purchase or otherwise, any other competing line of telegraph.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-12 Railroad corporations. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 12.\r\n \r\n\r\n\r\nRailroad corporations.\r\n \r\nEvery railroad corporation organized or doing business in\r\nthis state under the laws or authority thereof shall have and maintain a public office or place in\r\nthis state for the transaction of its business, where transfers of its stock shall be made, and in\r\nwhich shall be kept for public inspection books in which shall be recorded the amount of capital\r\nstock subscribed, and by whom; the names of the owners of its stock, and the amount owned by\r\nthem respectively; the amount of stock paid in, and by whom; the transfers of said stock; the\r\namount of its assets and liabilities; and the names and place of residence of its officers. The\r\ndirectors of every railroad corporation shall annually make a report, under oath, to the auditor of\r\npublic accounts or some officer or officers to be designated by law, of all their acts and doings,\r\nwhich report shall include such matters relating to railroads as may be prescribed by law, and the\r\nLegislature shall pass laws enforcing by suitable penalties the provisions of this section.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-13 Movable property of railroad corporation considered personalty--Execution and sale. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 13.\r\n \r\n\r\n\r\nMovable property of railroad corporation considered personalty--Execution and\r\nsale.\r\n \r\nThe rolling stock, and all other movable property belonging to any railroad company or\r\ncorporation in this state shall be considered personal property, and shall be liable to execution\r\nand sale in the same manner as the personal property of individuals, and the Legislature shall\r\npass no laws exempting such property from execution and sale.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-14 Consolidation of railroad lines--Forfeiture of charter for evasion of provisions. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 14.\r\n \r\n\r\n\r\nConsolidation of railroad lines--Forfeiture of charter for evasion of provisions.\r\n \r\nNo\r\nrailroad corporation shall consolidate its stock, property or franchises with any other railroad\r\ncorporation owning a parallel or competing line; and in no case shall any consolidation take place\r\nexcept upon public notice given out, at least sixty days to all stockholders, in such manner as\r\nmay be provided by law. Any attempt to evade the provisions of this section, by any railroad\r\ncorporation, by lease or otherwise, shall work a forfeiture of its charter.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-15 Railways and rail companies declared public highways and common carriers--Regulation of ra...\r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 15.\r\n \r\n\r\n\r\nRailways and rail companies declared public highways and common carriers--Regulation of rates.\r\n \r\nRailways heretofore constructed or that may hereafter be constructed, in this\r\nstate are hereby declared public highways, and all railroad and transportation companies are\r\ndeclared to be common carriers and subject to legislative control; and the Legislature shall have\r\npower to enact laws regulating and controlling the rates of charges for the transportation of\r\npassengers and freight as such common carriers from one point to another in this state.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-16 Right to construct and operate railroad--Passengers, tonnage, and cars. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 16.\r\n \r\n\r\n\r\nRight to construct and operate railroad--Passengers, tonnage, and cars.\r\n \r\nAny\r\nassociation or corporation organized for the purpose shall have the right to construct and operate\r\na railroad between any points within this state, and to connect at the state line with railroads of\r\nother states. Every railroad company shall have the right with its road to intersect, connect with,\r\nor cross any other railroad, and shall receive and transport each the other's passengers, tonnage\r\nand cars, loaded or empty, without delay or discrimination.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-17 Rate discrimination prevention. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 17.\r\n \r\n\r\n\r\nRate discrimination prevention.\r\n \r\nThe Legislature shall pass laws to correct abuses\r\nand prevent discrimination and extortion in the rates of freight and passenger tariffs on the\r\ndifferent railroads in this state, and enforce such laws by adequate penalties, to the extent, if\r\nnecessary for that purpose, of forfeiture of their property and franchises.

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-18 Compensation for private property taken for public use--Assessment of damages. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 18.\r\n \r\n\r\n\r\nCompensation for private property taken for public use--Assessment of damages.\r\n\r\n\r\nMunicipal and other corporations and individuals invested with the privilege of taking private\r\nproperty for public use shall make just compensation for property taken, injured or destroyed, by\r\nthe construction or enlargement of their works, highways or improvements, which compensation\r\nshall be paid or secured before such taking, injury or destruction. The Legislature is hereby\r\nprohibited from depriving any person of an appeal from any preliminary assessment of damages\r\nagainst any such corporation or individuals made by viewers or otherwise; and the amount of\r\nsuch damages in all cases of appeal shall, on the demand of either party, be determined by a jury\r\nas in other civil cases.
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\r\n\r\n\r\n History: Repeal proposed by SL 1975, ch 3, rejected Nov. 2, 1976.\r\n\r\n

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-19 Corporations defined. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n
\r\n    \r\n§ 19.\r\n \r\n\r\n\r\nCorporations defined.\r\n \r\nThe term "corporations," as used in this article, shall be construed\r\nto include all joint stock companies or associations having any of the powers or privileges of\r\ncorporations not possessed by individuals or partnerships.
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\r\n\r\n\r\n History: Repeal proposed by SL 2008, ch 1, § 4 rejected Nov. 4, 2008.\r\n\r\n

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-20 Monopolies and trusts prohibited--Combinations in restraint of trade--Legislative powers. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 20.\r\n \r\n\r\n\r\nMonopolies and trusts prohibited--Combinations in restraint of trade--Legislative\r\npowers.\r\n \r\nMonopolies and trusts shall never be allowed in this state and no incorporated company,\r\ncopartnership or association of persons in this state shall directly or indirectly combine or make\r\nany contract with any incorporated company, foreign or domestic, through their stockholders or\r\nthe trustees or assigns of such stockholders, or with any copartnership or association of persons,\r\nor in any manner whatever to fix the prices, limit the production or regulate the transportation of\r\nany product or commodity so as to prevent competition in such prices, production or\r\ntransportation or to establish excessive prices therefor.
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    \r\nThe Legislature shall pass laws for the enforcement of this section by adequate penalties and in\r\nthe case of incorporated companies, if necessary for that purpose may, as a penalty, declare a\r\nforfeiture of their franchises.
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\r\n\r\n\r\n History: Section proposed by SL 1895, ch 37, adopted Nov., 1896.\r\n\r\n

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-21 Corporate or syndicate farming prohibited--Definitions--Restrictions. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 21.\r\n \r\n\r\n\r\nCorporate or syndicate farming prohibited--Definitions--Restrictions.\r\n \r\nNo\r\ncorporation or syndicate may acquire, or otherwise obtain an interest, whether legal, beneficial,\r\nor otherwise, in any real estate used for farming in this state, or engage in farming. The term,\r\ncorporation, means any corporation organized under the laws of any state of the United States or\r\nany country. The term, syndicate, includes any limited partnership, limited liability partnership,\r\nbusiness trust, or limited liability company organized under the laws of any state of the United\r\nStates or any country. A syndicate does not include general partnerships, except general\r\npartnerships in which nonfamily farm syndicates or nonfamily farm corporations are partners.\r\nThe term, farming, means the cultivation of land for the production of agricultural crops, fruit, or\r\nother horticultural products, or the ownership, keeping, or feeding of animals for the production\r\nof livestock or livestock products.
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\r\n\r\n\r\n History: Section proposed by initiated measure, ch 333, adopted Nov. 3, 1998.\r\n\r\n

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\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-22 Restrictions--Application. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 22.\r\n \r\n\r\n\r\nRestrictions--Application.\r\n \r\nThe restrictions in § 21 of Article XVII do not apply to:
\r\n\r\n
    \r\n(1) A family farm corporation or syndicate. A family farm corporation or syndicate is a\r\ncorporation or syndicate engaged in farming or the ownership of agricultural land, in which a\r\nmajority of the partnership interests, shares, stock, or other ownership interests are held by members\r\nof a family or a trust created for the benefit of a member of that family. The term, family, means\r\nnatural persons related to one another within the fourth degree of kinship according to civil law, or\r\ntheir spouses. At least one of the family members in a family farm corporation or syndicate shall\r\nreside on or be actively engaged in the day-to-day labor and management of the farm. Day-to-day\r\nlabor and management shall require both daily or routine substantial physical exertion and\r\nadministration. None of the corporation's or syndicate's partners, members, or stockholders may be\r\nnonresident aliens, or other corporations or syndicates, unless all of the stockholders, members, or\r\npartners of such entities are persons related within the fourth degree of kinship to the majority of\r\npartners, members, or stockholders in the family farm corporation or syndicate;
\r\n\r\n
    \r\n(2) Agricultural land acquired or leased, or livestock kept, fed or owned, by a cooperative\r\norganized under the laws of any state, if a majority of the shares or other interests of ownership in\r\nthe cooperative are held by members in the cooperative who are natural persons actively engaged\r\nin the day-to-day labor and management of a farm, or family farm corporations or syndicates, and\r\nwho either acquire from the cooperative, through purchase or otherwise, such livestock, or crops\r\nproduced on such land, or deliver to the cooperative, through sale or otherwise, crops to be used in\r\nthe keeping or feeding of such livestock;
\r\n\r\n
    \r\n(3) Nonprofit corporations organized under state nonprofit corporation law;
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    \r\n(4) Agricultural land, which, as of the approval date of this amendment, is being farmed, or\r\nwhich is owned or leased, or in which there is a legal or beneficial interest, directly or indirectly\r\nowned, acquired, or obtained by a corporation or syndicate, if such land or other interest is held in\r\ncontinuous ownership or under continuous lease by the same such corporation or syndicate. For the\r\npurposes of this exemption, land purchased on a contract signed as of the approval date of this\r\namendment is considered as owned on that date;
\r\n\r\n
    \r\n(5) Livestock, which as of the approval date of this amendment, is owned by a corporation or\r\nsyndicate. For the purposes of this exemption, livestock to be produced under contract for a\r\ncorporation or syndicate are considered as owned, if the contract is for the keeping or feeding of\r\nlivestock and is signed as of the approval date of this amendment, and if the contract remains in\r\neffect and is not terminated by either party to the contract. This exemption does not extend beyond\r\nthe term of any contract signed as of the approval date of this amendment;
\r\n\r\n
    \r\n(6) A farm operated for research or experimental purposes, if any commercial sales from the farm\r\nare only incidental to the research or experimental objectives of the corporation or syndicate;
\r\n\r\n
    \r\n(7) Land leases by alfalfa processors for the production of alfalfa;
\r\n\r\n
    \r\n(8) Agricultural land operated for the purpose of growing seed, nursery plants, or sod;
\r\n\r\n
    \r\n(9) Mineral rights on agricultural land;
\r\n\r\n
    \r\n(10) Agricultural land acquired or leased by a corporation or syndicate for immediate or potential\r\nnonfarming purposes, for a period of five years from the date of purchase. A corporation or syndicate\r\nmay hold such agricultural land in such acreage as may be necessary to its nonfarm business\r\noperation, but pending the development of the agricultural land for nonfarm purposes, such land may\r\nnot be used for farming except under lease to a family farm corporation or family farm syndicate or\r\na non syndicate or noncorporate farm;
\r\n\r\n
    \r\n(11) Agricultural lands or livestock acquired by a corporation or syndicate by process of law in\r\nthe collection of debts, or by any procedures for the enforcement of a lien, encumbrance, or claim\r\nthereon, whether created by mortgage or otherwise. Any lands so acquired shall be disposed of\r\nwithin a period of five years and may not be used for farming before being disposed of, except under\r\na lease to a family farm corporation or syndicate, or a nonsyndicate or noncorporate farm. Any\r\nlivestock so acquired shall be disposed of within six months;\r\n
\r\n\r\n
    \r\n(12) Agricultural lands held by a state or nationally chartered bank as trustee for a person,\r\ncorporation or syndicate that is otherwise exempt from the provisions of §§ 21 to 24, inclusive, of\r\nArticle XVII;
\r\n\r\n
    \r\n(13) A bona fide encumbrance taken for purposes of security;
\r\n\r\n
    \r\n(14) Custom spraying, fertilizing, or harvesting;
\r\n\r\n
    \r\n(15) Livestock futures contracts, livestock purchased for slaughter within two weeks of the\r\npurchase date, or livestock purchased and resold within two weeks.
\r\n

\r\n\r\n\r\n History: Section proposed by initiated measure, ch 333, adopted Nov. 3, 1998.\r\n\r\n

\r\n

\r\n\r\n

\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-23 Loss of qualification--Requalification or dissolution. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 23.\r\n \r\n\r\n\r\nLoss of qualification--Requalification or dissolution.\r\n \r\nIf a family farm corporation or\r\nfamily farm syndicate that has qualified under all the requirements of a family farm corporation\r\nor a family farm syndicate ceases to meet the defined criteria, it has twenty years, if the\r\nownership of the majority of the stock of such corporation, or the majority of the ownership\r\ninterest of such syndicate, continues to be held by persons related to one another within the\r\nfourth degree of kinship or their spouses, and their land holdings are not increased, to either\r\nrequalify as a family farm corporation or family farm syndicate or dissolve and return to personal\r\nownership.
\r\n

\r\n\r\n\r\n History: Section proposed by initiated measure, ch 333, adopted Nov. 3, 1998.\r\n\r\n

\r\n

\r\n\r\n

\r\n \r\n \r\n \r\n \r\n\r\n\r\n\r\n\r\n0N-17-24 Annual report--Violations--Action and enforcement. \r\n\r\n\r\n\r\n
\r\n\r\n\r\n\r\n\r\n\r\n\r\n    \r\n§ 24.\r\n \r\n\r\n\r\nAnnual report--Violations--Action and enforcement.\r\n \r\nAny corporation or syndicate\r\nthat owns agricultural land or engages in farming is required to report information necessary for\r\nthe enforcement of §§ 21 to 24, inclusive, of Article XVII to the secretary of state on an annual\r\nbasis, under rules promulgated by the secretary pursuant to state law. The secretary of state shall\r\nmonitor such reports and notify the attorney general of any possible violations, and any resident\r\nof the state may also notify the attorney general of any possible violations. If a corporation or\r\nsyndicate violates any provision of §§ 21 to 24, inclusive, of Article XVII, the attorney general\r\nshall commence an action in circuit court to enjoin any pending illegal purchase of land or\r\nlivestock, or to force divestiture of land or livestock held in violation of §§ 21 to 24, inclusive, of\r\nArticle XVII. The court shall order any land held in violation of §§ 21 to 24, inclusive, of Article\r\nXVII to be divested within two years and any livestock to be divested within six months. If land\r\nso ordered by the court has not been divested within two years, the court shall declare the land\r\nescheated to the state. If the attorney general fails to bring an action in circuit court to enforce\r\n§§ 21 to 24, inclusive, of Article XVII, any resident of the state has standing in circuit court to\r\nsue for enforcement.
\r\n

\r\n\r\n\r\n History: Section proposed by initiated measure, ch 333, adopted Nov. 3, 1998.\r\n\r\n

\r\n

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