Section 6040-7 - ParticipationNotwithstanding any other rule or provision of law or any provision in their respective charters, agreements of association, articles of organization, certificates or articles of incorporation:
(1) All business corporations organized for the purpose of doing business within this Commonwealth, including, without implied limitation, any railroad or transportation corporation or other public utility, are hereby authorized to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of any bonds, securities or other evidences of indebtedness created by or the shares of the capital stock of a corporation, and while owners of the stock, to exercise all the rights, powers and privileges of ownership without the approval of any regulatory authority of this Commonwealth.(2) All financial institutions are hereby authorized to become parties to lending agreements with a corporation and to make loans to a corporation as provided herein.(3) Each financial institution which becomes a party to a lending agreement with a corporation is hereby authorized to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of any bonds, securities or other evidences of indebtedness issued by the corporation or, and to the extent not otherwise prohibited by law, to acquire, purchase, hold, sell, assign, transfer, mortgage, pledge, or otherwise dispose of any shares of its capital stock, and while owners of said stock to exercise all the rights, powers and privileges of ownership, including the right to vote thereon, all without the approval of any regulatory authority of this Commonwealth. The amount of the capital stock of a corporation which may be acquired by any party to a lending agreement with a corporation pursuant to the authority granted herein shall not exceed ten per centum of the loan limit of that party. The amount of capital stock of the corporation, which any party to a lending agreement with a corporation is authorized to acquire pursuant to the authority granted herein, shall be in addition to the amount of capital stock in corporations other than a corporation created by this act, which such party may otherwise be authorized to acquire.1959, Dec. 1, P.L. 1647, § 7.