Approval of issues of stocks, bonds and other forms of indebtedness.
393.200. 1. A gas corporation, electrical corporation,water corporation or sewer corporation organized or existing orhereafter incorporated under or by virtue of the laws of thisstate may issue stocks, bonds, notes or other evidences ofindebtedness payable at periods of more than twelve months afterthe date thereof, when necessary for the acquisition of property,the construction, completion, extension or improvement of itsplant or system, or for the improvement or maintenance of itsservice or for the discharge or lawful refunding of itsobligations or for the reimbursement of moneys actually expendedfrom income, or from any other moneys in the treasury of thecorporation not secured or obtained from the issue of stocks,bonds, notes or other evidence of indebtedness of suchcorporation, within five years next prior to the filing of anapplication with the commission for the required authorization,for any of the aforesaid purposes except maintenance of serviceand except replacements in cases where the applicant shall havekept its accounts and vouchers of such expenditure in such manneras to enable the commission to ascertain the amount of money soexpended and the purposes for which such expenditure was made;provided, and not otherwise, that there shall have been securedfrom the commission an order authorizing such issue, and theamount thereof, and stating the purposes to which the issue orproceeds thereof are to be applied, and that, in the opinion ofthe commission, the money, property or labor to be procured orpaid for by the issue of such stock, bonds, notes or otherevidence of indebtedness is or has been reasonably required forthe purposes specified in the order, and that except as otherwisepermitted in the order in the case of bonds, notes and otherevidence of indebtedness, such purposes are not in whole or inpart reasonably chargeable to operating expenses or to income.
2. Nothing herein contained shall prohibit the commissionfrom giving its consent to the issue of bonds, notes or otherevidence of indebtedness for the reimbursement of moneysheretofore actually expended from income for any of the aforesaidpurposes, except maintenance of service or replacements, prior tofive years next preceding the filing of an application therefor,by any sewer corporation, if in the judgment of the commissionsuch consent should be granted, provided application for suchconsent shall be made prior to January 1, 1968. For the purposeof enabling it to determine whether it should issue such anorder, the commission shall make such inquiry or investigation,hold such hearings and examine such witnesses, books, papers,documents and contracts as it may deem of importance in enablingit to reach a determination. Such sewer corporation shall notwithout the consent of the commission apply said issue or anyproceeds thereof to any purpose not specified in such order.
3. Such gas corporation, electrical corporation, watercorporation or sewer corporation may issue notes, for propercorporate purposes and not in violation of any provision of thisor any other law, payable at periods of not more than twelvemonths without such consent; but no such notes shall, in whole orin part, directly or indirectly, be refunded by any issue ofstock or bonds or by any evidence of indebtedness running formore than twelve months without the consent of the commission;provided, however, that the commission shall have no power toauthorize the capitalization of any franchise to be a corporationor to authorize the capitalization of any franchise or the rightto own, operate or enjoy any franchise whatsoever in excess ofthe amount, exclusive of any tax or annual charge, actually paidto the state or to any political subdivision thereof as theconsideration for the grant of such franchise or right. Norshall the capital stock of a corporation, formed by the merger orconsolidation of two or more other corporations, exceed the sumof the capital stock of the corporations, so consolidated, at thepar value thereof, or such sum and any additional sum actuallypaid in cash; nor shall any contract for consolidation or leasebe capitalized in the stock of any corporation whatsoever; norshall any corporation hereafter issue any bonds against or as alien upon any contract for consolidation or merger.
Approval of issues of stocks, bonds and other forms of indebtedness.
393.200. 1. A gas corporation, electrical corporation,water corporation or sewer corporation organized or existing orhereafter incorporated under or by virtue of the laws of thisstate may issue stocks, bonds, notes or other evidences ofindebtedness payable at periods of more than twelve months afterthe date thereof, when necessary for the acquisition of property,the construction, completion, extension or improvement of itsplant or system, or for the improvement or maintenance of itsservice or for the discharge or lawful refunding of itsobligations or for the reimbursement of moneys actually expendedfrom income, or from any other moneys in the treasury of thecorporation not secured or obtained from the issue of stocks,bonds, notes or other evidence of indebtedness of suchcorporation, within five years next prior to the filing of anapplication with the commission for the required authorization,for any of the aforesaid purposes except maintenance of serviceand except replacements in cases where the applicant shall havekept its accounts and vouchers of such expenditure in such manneras to enable the commission to ascertain the amount of money soexpended and the purposes for which such expenditure was made;provided, and not otherwise, that there shall have been securedfrom the commission an order authorizing such issue, and theamount thereof, and stating the purposes to which the issue orproceeds thereof are to be applied, and that, in the opinion ofthe commission, the money, property or labor to be procured orpaid for by the issue of such stock, bonds, notes or otherevidence of indebtedness is or has been reasonably required forthe purposes specified in the order, and that except as otherwisepermitted in the order in the case of bonds, notes and otherevidence of indebtedness, such purposes are not in whole or inpart reasonably chargeable to operating expenses or to income.
2. Nothing herein contained shall prohibit the commissionfrom giving its consent to the issue of bonds, notes or otherevidence of indebtedness for the reimbursement of moneysheretofore actually expended from income for any of the aforesaidpurposes, except maintenance of service or replacements, prior tofive years next preceding the filing of an application therefor,by any sewer corporation, if in the judgment of the commissionsuch consent should be granted, provided application for suchconsent shall be made prior to January 1, 1968. For the purposeof enabling it to determine whether it should issue such anorder, the commission shall make such inquiry or investigation,hold such hearings and examine such witnesses, books, papers,documents and contracts as it may deem of importance in enablingit to reach a determination. Such sewer corporation shall notwithout the consent of the commission apply said issue or anyproceeds thereof to any purpose not specified in such order.
3. Such gas corporation, electrical corporation, watercorporation or sewer corporation may issue notes, for propercorporate purposes and not in violation of any provision of thisor any other law, payable at periods of not more than twelvemonths without such consent; but no such notes shall, in whole orin part, directly or indirectly, be refunded by any issue ofstock or bonds or by any evidence of indebtedness running formore than twelve months without the consent of the commission;provided, however, that the commission shall have no power toauthorize the capitalization of any franchise to be a corporationor to authorize the capitalization of any franchise or the rightto own, operate or enjoy any franchise whatsoever in excess ofthe amount, exclusive of any tax or annual charge, actually paidto the state or to any political subdivision thereof as theconsideration for the grant of such franchise or right. Norshall the capital stock of a corporation, formed by the merger orconsolidation of two or more other corporations, exceed the sumof the capital stock of the corporations, so consolidated, at thepar value thereof, or such sum and any additional sum actuallypaid in cash; nor shall any contract for consolidation or leasebe capitalized in the stock of any corporation whatsoever; norshall any corporation hereafter issue any bonds against or as alien upon any contract for consolidation or merger.
Approval of issues of stocks, bonds and other forms of indebtedness.
393.200. 1. A gas corporation, electrical corporation,water corporation or sewer corporation organized or existing orhereafter incorporated under or by virtue of the laws of thisstate may issue stocks, bonds, notes or other evidences ofindebtedness payable at periods of more than twelve months afterthe date thereof, when necessary for the acquisition of property,the construction, completion, extension or improvement of itsplant or system, or for the improvement or maintenance of itsservice or for the discharge or lawful refunding of itsobligations or for the reimbursement of moneys actually expendedfrom income, or from any other moneys in the treasury of thecorporation not secured or obtained from the issue of stocks,bonds, notes or other evidence of indebtedness of suchcorporation, within five years next prior to the filing of anapplication with the commission for the required authorization,for any of the aforesaid purposes except maintenance of serviceand except replacements in cases where the applicant shall havekept its accounts and vouchers of such expenditure in such manneras to enable the commission to ascertain the amount of money soexpended and the purposes for which such expenditure was made;provided, and not otherwise, that there shall have been securedfrom the commission an order authorizing such issue, and theamount thereof, and stating the purposes to which the issue orproceeds thereof are to be applied, and that, in the opinion ofthe commission, the money, property or labor to be procured orpaid for by the issue of such stock, bonds, notes or otherevidence of indebtedness is or has been reasonably required forthe purposes specified in the order, and that except as otherwisepermitted in the order in the case of bonds, notes and otherevidence of indebtedness, such purposes are not in whole or inpart reasonably chargeable to operating expenses or to income.
2. Nothing herein contained shall prohibit the commissionfrom giving its consent to the issue of bonds, notes or otherevidence of indebtedness for the reimbursement of moneysheretofore actually expended from income for any of the aforesaidpurposes, except maintenance of service or replacements, prior tofive years next preceding the filing of an application therefor,by any sewer corporation, if in the judgment of the commissionsuch consent should be granted, provided application for suchconsent shall be made prior to January 1, 1968. For the purposeof enabling it to determine whether it should issue such anorder, the commission shall make such inquiry or investigation,hold such hearings and examine such witnesses, books, papers,documents and contracts as it may deem of importance in enablingit to reach a determination. Such sewer corporation shall notwithout the consent of the commission apply said issue or anyproceeds thereof to any purpose not specified in such order.
3. Such gas corporation, electrical corporation, watercorporation or sewer corporation may issue notes, for propercorporate purposes and not in violation of any provision of thisor any other law, payable at periods of not more than twelvemonths without such consent; but no such notes shall, in whole orin part, directly or indirectly, be refunded by any issue ofstock or bonds or by any evidence of indebtedness running formore than twelve months without the consent of the commission;provided, however, that the commission shall have no power toauthorize the capitalization of any franchise to be a corporationor to authorize the capitalization of any franchise or the rightto own, operate or enjoy any franchise whatsoever in excess ofthe amount, exclusive of any tax or annual charge, actually paidto the state or to any political subdivision thereof as theconsideration for the grant of such franchise or right. Norshall the capital stock of a corporation, formed by the merger orconsolidation of two or more other corporations, exceed the sumof the capital stock of the corporations, so consolidated, at thepar value thereof, or such sum and any additional sum actuallypaid in cash; nor shall any contract for consolidation or leasebe capitalized in the stock of any corporation whatsoever; norshall any corporation hereafter issue any bonds against or as alien upon any contract for consolidation or merger.
