56-56 - Issue of securities a special privilege subject to regulation.
§ 56-56. Issue of securities a special privilege subject to regulation.
The power of public service companies to issue stocks and stock certificatesor other evidences of interest or ownership, and bonds, notes and otherevidences of indebtedness and to create liens on their property situatedwithin this Commonwealth is a special privilege, the right of supervision,regulation, restriction, and control of which is and shall continue to bevested in the Commonwealth; and such power shall be exercised as provided bylaw and under such rules and regulations as the Commission may prescribe;provided that this section shall not apply to obligations incurred forpurchase of machinery or equipment where such obligations are secured byconditional sales contracts.
(1934, p. 221; Michie Code 1942, § 4073(2); 1958, c. 11.)