[§271G-17.5]  Issuance of securities;
execution of leases.  A water common carrier 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, and enter
into long-term leases of more than three years and leverage leases, for the
following purposes and no other, namely:



(1)  For the acquisition of property; or



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



(3)  For the discharge or lawful refunding of its
obligations; or



(4)  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 water carrier 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
water carrier whether or not included in its regulated operations or rate
base.  A water carrier may not issue securities nor enter into long-term leases
of more than three years and leverage leases, 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 operations.  No carrier shall repurchase or reissue its
own common stock without prior commission approval.



All stock and every stock certificate, and
every bond, note, or other evidence of indebtedness of a water carrier not
payable within twelve months, issued without an order of the commission
authorizing the same, then in effect, shall be void.  In addition, all
long-term leases of more than three years and all leverage leases entered into
by a water carrier without an order of the commission authorizing the same then
in effect shall be void. [L 1980, c 131, §1]