Whenever any railroad corporation shall mortgage or convey in trust its railroad or
railroad property, or any part thereof, to trustees, for the security of its bondholders
or other creditors, or for the security of any class of bondholders or other creditors,
and the trustees shall have taken possession of any railroad or railroad property,
in pursuance of any authority contained in their mortgage or deed of trust, and shall
take charge of and operate the railroad or railroad property for the benefit of the
creditors for whom the trust was created, the trustees shall not, after the assent
of the bondholders as hereinafter provided, be personally liable for any cause or
injury arising from the operation of the road, or while they may operate the same,
except for their willful mismanagement or for any contracts made by them as trustees;
but all railroad property shall, the bondholders having assented thereto, be liable
for the acts and proceedings of the trustees in the execution of their trusts, to
the extent of the interest of the trustees of the bondholders or creditors, for whose
benefit the trustees may act, and any action or other proceeding therefor shall be
brought against the trustees, describing them as such.
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