66-125. Issuance of securities; certificate of commission required, when; proceedings; motor carriers exempted.
66-125
66-125. Issuance of securities; certificate of commission required,when; proceedings; motor carriers exempted.(a) Any investor-owned electric public utility incorporated in the state ofKansas may issue stocks,certificates, bonds, notes or other evidences of indebtedness,payable at periods of more than 12 months after the date thereof,when necessary for the acquisition of property, for the purposeof carrying out its corporate powers, the construction,completion, extension or improvements of its facilities, for theimprovements or maintenance of its service, for the discharge orlawful refunding of its obligations, or for such other purposesas may be authorized by law. Prior to any such issuance, thereshall be secured from the commission a certificate stating theamount, character, purposes and terms on which such stocks,certificates, bonds, notes or other evidences of indebtedness areproposed to be issued, as set out in the application for suchcertificate. In lieu of securing a certificate from thecommission, if the issuance requires a registration statement tobe filed with the securities and exchange commission or suchutility obtains an authorization or approval of such issuancefrom another state or federal agency, the public utility mayfile with the state corporation commission acopy of the information filed with the securities and exchangecommission or such other agency.
(b) The proceedings for obtaining such certificate from thecommission and the conditions of its being issued shall be asfollows:
(1) In case the stocks, certificates, bonds, notes or otherevidences of indebtedness are to be issued for money only, thepublic utility or common carrier shall file with the commission astatement, signed and verified by the president or other chiefofficer of the company having knowledge of the facts, showing:
(A) The amount and character of the proposed stocks,certificates, bonds, notes or other evidences of indebtedness;
(B) the general purposes for which they are to be issued;
(C) the terms on which they are to be issued;
(D) the total assets and liabilities of the public utilityor common carrier; and
(E) that the capital sought to be secured by the issuance ofsuch stocks, certificates, bonds, notes or other evidences ofindebtedness is necessary and required for such purposes and willbe used therefor.
(2) In case stocks, certificates, bonds, notes or otherevidences of indebtedness are to be issued partly or wholly forproperty or services or other consideration than money, thepublic utility or common carrier shall file with the commission astatement, signed and verified by the president or other chiefofficer having knowledge of the facts, showing:
(A) The amount and character of the stocks, certificates,bonds, notes or other evidences of indebtedness proposed to beissued;
(B) the general purposes for which they are to be issued;
(C) a general description and an estimated value of theproperty or services for which they are to be issued;
(D) the terms on which they are to be issued or exchanged;
(E) the amount of money, if any, to be received for the samein addition to such property, services or other consideration;
(F) the total assets and liabilities of the public utilityor common carrier; and
(G) that the capital sought to be secured by the issuance ofsuch stocks, certificates, bonds, notes or other evidences ofindebtedness is necessary and required for such purposes and willbe used therefor.
(c) The commission may also require the public utility orcommon carrier to furnish such further statements of facts as maybe reasonable and pertinent to the inquiry. Upon full complianceby the applicant with the provisions of this section thecommission shall forthwith issue a certificate stating theamount, character, purposes and terms upon which such stocks,certificates, bonds, notes or other evidences of indebtedness areproposed to be issued, as set out in the application for suchcertificate. Any issue of stocks, certificates, bonds, notes orother evidences of indebtedness not payable within one year,which shall be issued by such public utility or common carriercontrary to the provisions of this act shall be voidable by thecommission, except as provided in subsection (d).
(d) The provisions of this section shall not apply to motorcarriers, as defined in K.S.A. 66-1,108, and amendments theretoor any public utility except as provided in subsection (a). Anyissue of stocks, certificates, bonds, notes or other evidences ofindebtedness not payable within one year, which were issued by amotor carrier prior to the effective date of this act withoutobtaining a certificate from the commission shall be deemedvalid.
History: L. 1911, ch. 238, § 25; R.S. 1923, 66-125; L. 1983, ch.222, § 1;L. 1988, ch. 265, § 1;L. 1993, ch. 118, § 1;L. 1995, ch. 4, § 1;L. 1996, ch. 268, § 16;L. 1997, ch. 132, § 16; July 1.