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278.300 Issuance or assumption of securities by utilities.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
No utility shall issue any securities or evidences of indebtedness, or assume
any obligation or liability in respect to the securities or evidences of
indebtedness of any other person until it has been authorized so to do by order
of the commission.
Application for authority to issue or assume securities or evidences of
indebtedness shall be made in such form as the commission prescribes. Every
such application shall be made under oath, and shall be signed and filed on
behalf of the utility by its president, or by a vice president, auditor, comptroller,
or other executive officer having knowledge of the matters set forth and duly
designated by the utility. Every such application shall be placed at the head of
the docket of the commission and disposed of promptly within sixty (60) days
after it is filed with the commission, unless it is necessary for good cause to
continue the application for longer time than sixty (60) days, in which case the
order making the continuance shall state fully the facts that make it necessary.
The commission shall not approve any issue or assumption unless, after
investigation of the purposes and uses of the proposed issue and the proceeds
thereof, or of the proposed assumption of obligation or liability, the commission
finds that the issue or assumption is for some lawful object within the corporate
purposes of the utility, is necessary or appropriate for or consistent with the
proper performance by the utility of its service to the public and will not impair
its ability to perform that service, and is reasonably necessary and appropriate
for such purpose.
The commission may grant or deny the application in whole or in part, or may
grant it with such modifications and upon such terms and conditions as the
commission deems necessary or appropriate. The order of the commission
shall specify that the securities or evidences of indebtedness, or the proceeds
thereof, shall be used only for the lawful purposes specified in the application,
and both the application of the utility and the order of the commission shall
state in general terms the purpose of the issuance or assumption.
A copy of any order made and entered by the commission under this section,
duly certified by the executive director of the commission, shall be sufficient
evidence for all purposes of full and complete compliance by the utility with all
procedural and other matters required precedent to the entry of the order.
Securities and evidences of indebtedness issued and obligations and liabilities
assumed by a utility, for which, under the provisions of this section, the
authorization of the commission is required, shall comply with the terms and
conditions of the order of authorization entered prior to the issue or
assumption, and where the order has been fully complied with the validity of
the issue or assumption shall not be affected by a failure to comply with any
provision of this section or rule of the commission relating to procedure or other
matters preceding the entry of the order of authorization or order supplemental
thereto.
The commission may require periodical or special reports from the utility
issuing any security or evidence of indebtedness. The report shall show, in
such detail as the commission requires, the disposition made of such securities
or evidences of indebtedness, and the application of the proceeds thereof.
(8)
This section does not apply to notes issued by a utility, for proper purposes
and not in violation of law, that are payable at periods of not more than two (2)
years from the date thereof, or to like notes, payable at a period of not more
than two (2) years from date thereof, that are issued to pay or refund in whole
or in part any such notes, or to renewals of such notes from time to time, not
exceeding in the aggregate six (6) years from the date of the issue of the
original notes so renewed or refunded.
(9) Nothing in this section implies any guarantee of securities or evidences of
indebtedness by the state, or any obligation on the part of the state with
respect thereto, and nothing in this section limits the power of any court having
jurisdiction to authorize or cause receiver's certificates or debentures to be
issued according to the rules and practice obtaining in receivership
proceedings in courts of equity.
(10) This section does not apply in any instance where the issuance of securities or
evidences of indebtedness is subject to the supervision or control of the federal
government or any agency thereof, but the commission may appear as a party
to any proceeding filed or pending before any federal agency if the issuance of
the securities or evidences of indebtedness will materially affect any utility over
which the commission has jurisdiction.
(11) This section also does not apply to the issuance of securities or evidence of
indebtedness by a utility principally engaged in transportation of gas by pipeline
in interstate commerce and subject to the supervision, control or jurisdiction of
the federal government or any agency, board or commission thereof.
Effective:July 15, 1994
History: Amended 1994 Ky. Acts ch. 166, sec. 3, effective July 15, 1994. -Amended 1982 Ky. Acts ch. 82, sec. 34, effective July 15, 1982. -- Amended
1978 Ky. Acts ch. 379, sec. 37, effective April 1, 1979. -- Amended 1972 Ky.
Acts ch. 9, sec. 1. -- Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October
1, 1942, from Ky. Stat. sec. 3952-24.
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