§269-17  Issuance of securities.  Apublic utility corporation may, on securing the prior approval of the publicutilities commission, and not otherwise, issue stocks and stock certificates,bonds, notes, and other evidences of indebtedness, payable at periods of morethan twelve months after the date thereof, for the following purposes and noother, namely:  for the acquisition of property or for the construction,completion, extension, or improvement of or addition to its facilities orservice, or for the discharge or lawful refunding of its obligations or for thereimbursement of moneys actually expended from income or from any other moneysin its treasury not secured by or obtained from the issue of its stocks orstock certificates, or bonds, notes, or other evidences of indebtedness, forany of the aforesaid purposes except maintenance of service, replacements, andsubstitutions not constituting capital expenditure in cases where thecorporation has kept its accounts for such expenditures in such manner as toenable the commission to ascertain the amount of moneys so expended and thepurposes for which the expenditures were made, and the sources of the funds inits treasury applied to the expenditures.  As used herein, "property"and "facilities", mean property and facilities used in all operationsof a public utility corporation whether or not included in its public utilityoperations or rate base.  A public utility corporation may not issue securitiesto acquire property or to construct, complete, extend or improve or add to itsfacilities or service if the commission determines that the proposed purposewill have a material adverse effect on its public utility operations.

All stock and every stock certificate, andevery bond, note, or other evidence of indebtedness of a public utilitycorporation not payable within twelve months, issued without an order of thecommission authorizing the same, then in effect, shall be void. [L 1933, c 169,pt of §4; RL 1935, §7955; RL 1945, §4716; RL 1955, §104-16; HRS §269-17; am L1969, c 276, §1]

 

Cross References

 

  Administrative procedure, see chapter 91.

 

Case Notes

 

  Contract for lease of land, which was not a loan and whichwas not a method of generating capital was not an evidence of indebtedness.  64H. 289, 639 P.2d 1103.

  Cited:  44 H. 634, 635, 361 P.2d 390; 47 H. 1, 7, 384 P.2d536.