Oregon Constitution "ARTICLE XI CORPORATIONS AND INTERNAL IMPROVEMENTS"
Here is a summary of Article XI – Corporations and Internal Improvements from the Oregon Constitution:
Oregon Constitution – Article XI: Corporations and Internal Improvements
Overview:
Article XI addresses the formation, regulation, and operation of corporations, especially concerning banking, railroads, and internal improvements (like roads and canals). It also outlines restrictions on the state’s role in business and infrastructure projects, especially concerning public debt and investments.
Key Provisions:
State Restrictions on Investment (Sections 1–2):
The state cannot hold stock in, loan credit to, or become a partner in any corporation or company.
It also may not raise or loan money for works of internal improvement (such as railroads, canals, etc.).
Corporation Formation and Regulation (Sections 3–4):
Corporations must be formed under general laws; special acts are prohibited unless necessary.
The legislature retains the power to alter or repeal corporate charters.
Banking Regulations (Sections 1a, 1b, 3a):
Strict rules govern how banks are chartered and operate.
The state is prohibited from establishing a state bank (though this has been amended historically).
Debt Limitations (Section 7):
The state may not incur debts exceeding $50,000 unless for war, invasion, or suppression of insurrection.
Voter approval is required for larger debt issuance.
Railroads and Transportation (Sections 8–11):
Certain provisions originally aimed at promoting or regulating railroad development.
Some of these sections are now obsolete or repealed.
Municipal Borrowing and Guarantee Restrictions (Sections 6, 10):
Local governments may not lend credit or become indebted on behalf of private entities without strict limitations or public vote.
Important Amendments and Developments:
Numerous sections have been amended or repealed over time due to changes in how Oregon handles corporate regulation and public works.
Some historical provisions remain for context, but practical governance now relies on more recent legal frameworks and statutes.
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