§ 8-1-2-80 — Stocks, bonds, commercial paper, and evidences of indebtedness; certificate of authority for issuance

Indiana § 8-1-2-80

• Jurisdiction: Indiana
• Art. 1: UTILITIES GENERALLY
• Ch. 2: Utility Regulation

Text

If the commission shall determine that such
proposed issue complies with the provisions of this chapter, such
authority shall thereupon be granted, and it shall issue to the public
utility a certificate of authority stating:
(a) the amount of such stocks, certificates of stock, bonds, notes,
or other evidences of indebtedness, reasonably necessary for the
purposes for which they are to be issued and the character of the
same; and
(b) the purposes for which they are to be issued and the property
or services to be acquired thereby valued in detail.
Such public utility shall not apply the proceeds of such stock, bonds,
notes, or other evidences of indebtedness as aforesaid to any purposes
not specified in such certificate, nor issue such stock, bonds, notes, or
other evidences of indebtedness in greater amounts than specified in
such certificate. Nothing contained in this section shall prohibit the
commission from giving its consent to the issue of bonds, notes, or
other evidences of indebtedness for the reimbursement of moneys
actually expended before May 1, 1913, from income for any of the
purposes specified in section 78 of this chapter if, in the judgment of
the commission, such consent should be granted, provided, application
for such consent shall be made prior to January 1, 1915. For the
purpose of enabling it to determine whether it should issue such an
order, the commission shall make such inquiry or investigation, hold
such hearings and examine such witnesses, books, papers, documents,
or contracts as it may deem of importance in enabling it to reach a
determination. The commission shall have power to impose such
conditions upon a public utility in issuing of securities as it may deem
reasonable. Such public utilities shall not, without the consent of the
commission, apply said issue or any proceeds thereof to any purpose
not specified in such order. Provided, however, that the commission
shall have no power to authorize the capitalization of any franchise to
be a corporation, or to authorize the capitalization of any franchise or
the right to own, operate, or enjoy any franchise whatsoever, in excess
of the amount (exclusive of any tax or annual charge) actually paid to
the state or to any political subdivision thereof as the consideration for
the grant of such franchise or right. The capitalization of a corporation
formed by the merger or consolidation of two (2) or more corporations
shall be subject to the approval of the commission, but in no event shall
such capitalization exceed the sum of the corporations so consolidated,
at the par value thereof, or such sums and any additional sum actually
paid in cash; nor shall any contract for consolidation or lease be
capitalized in the stock of any corporation whatever; nor shall any
corporation after May 1, 1913, issue any bonds against or as a lien
upon any contract for consolidation or merger.
Formerly: Acts 1913, c.76, s.92; Acts 1967, c.64, s.1. As
amended by P.L.59-1984, SEC.35.