[§271G-17.5]  Issuance of securities;execution of leases.  A water common carrier may, on securing the priorapproval of the public utilities commission, and not otherwise, issue stocksand stock certificates, bonds, notes, and other evidences of indebtedness,payable at periods of more than twelve months after the date thereof, and enterinto long-term leases of more than three years and leverage leases, for thefollowing purposes and no other, namely:

(1)  For the acquisition of property; or

(2)  For the construction, completion, extension, orimprovement of or addition to its facilities or service; or

(3)  For the discharge or lawful refunding of itsobligations; or

(4)  For the reimbursement of moneys actually expendedfrom income or from any other moneys in its treasury not secured by or obtainedfrom the issue of its stocks or stock certificates, or bonds, notes, or otherevidences of indebtedness, for any of the aforesaid purposes, exceptmaintenance of service, replacements, and substitutions not constitutingcapital expenditure in cases where the water carrier has kept its accounts forsuch expenditures in such manner as to enable the commission to ascertain theamount of moneys so expended and the purposes for which the expenditures weremade, 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 awater carrier whether or not included in its regulated operations or ratebase.  A water carrier may not issue securities nor enter into long-term leasesof more than three years and leverage leases, to acquire property or toconstruct, complete, extend or improve or add to its facilities or service, ifthe commission determines that the proposed purpose will have a materialadverse effect on its operations.  No carrier shall repurchase or reissue itsown common stock without prior commission approval.

All stock and every stock certificate, andevery bond, note, or other evidence of indebtedness of a water carrier notpayable within twelve months, issued without an order of the commissionauthorizing the same, then in effect, shall be void.  In addition, alllong-term leases of more than three years and all leverage leases entered intoby a water carrier without an order of the commission authorizing the same thenin effect shall be void. [L 1980, c 131, §1]