§269-17  Issuance of securities.  A
public utility corporation may, on securing the prior approval of the public
utilities commission, and not otherwise, issue stocks and stock certificates,
bonds, notes, and other evidences of indebtedness, payable at periods of more
than twelve months after the date thereof, for the following purposes and no
other, namely:  for the acquisition of property or for the construction,
completion, extension, or improvement of or addition to its facilities or
service, or for the discharge or lawful refunding of its obligations or for the
reimbursement of moneys actually expended from income or from any other moneys
in its treasury not secured by or obtained from the issue of its stocks or
stock certificates, or bonds, notes, or other evidences of indebtedness, for
any of the aforesaid purposes except maintenance of service, replacements, and
substitutions not constituting capital expenditure in cases where the
corporation has kept its accounts for such expenditures in such manner as to
enable the commission to ascertain the amount of moneys so expended and the
purposes for which the expenditures were made, and the sources of the funds in
its treasury applied to the expenditures.  As used herein, "property"
and "facilities", mean property and facilities used in all operations
of a public utility corporation whether or not included in its public utility
operations or rate base.  A public utility corporation may not issue securities
to acquire property or to construct, complete, extend or improve or add to its
facilities or service if the commission determines that the proposed purpose
will have a material adverse effect on its public utility operations.



All stock and every stock certificate, and
every bond, note, or other evidence of indebtedness of a public utility
corporation not payable within twelve months, issued without an order of the
commission 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 L
1969, c 276, §1]



 



Cross References



 



  Administrative procedure, see chapter 91.



 



Case Notes



 



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



  Cited:  44 H. 634, 635, 361 P.2d 390; 47 H. 1, 7, 384 P.2d
536.