§ 79i. — Acquisition of securities and utility assets and other interests.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC79i]
TITLE 15--COMMERCE AND TRADE
CHAPTER 2C--PUBLIC UTILITY HOLDING COMPANIES
Sec. 79i. Acquisition of securities and utility assets and other
interests
(a) Acquisition prohibited prior to Commission approval
Unless the acquisition has been approved by the Commission under
section 79j of this title, it shall be unlawful--
(1) for any registered holding company or any subsidiary company
thereof, by use of the mails or any means or instrumentality of
interstate commerce, or otherwise, to acquire, directly or
indirectly, any securities or utility assets or any other interest
in any business;
(2) for any person, by use of the mails or any means or
instrumentality of interstate commerce, to acquire, directly or
indirectly, any security of any public-utility company, if such
person is an affiliate under clause (A) of paragraph (11) of
subsection (a) of section 79b of this title, of such company and of
any other public utility or holding company, or will by virtue of
such acquisition become such an affiliate.
(b) Acquisition of utility assets authorized by State Commission;
holding company systems organized in same State
Subsection (a) of this section shall not apply to--
(1) the acquisition by a public-utility company of utility
assets the acquisition of which has been expressly authorized by a
State commission; or
(2) the acquisition by a public-utility company of securities of
a subsidiary public-utility company thereof, provided that both such
public-utility companies and all other public-utility companies in
the same holding-company system are organized in the same State,
that the business of each such company in such system is
substantially confined to such State, and that the acquisition of
such securities has been expressly authorized by the State
commission of such State.
(c) Acquisition of securities guaranteed by United States, State, or
political subdivision; other securities and commercial paper
held appropriate by Commission
Subsection (a) of this section shall not apply to the acquisition by
a registered holding company, or a subsidiary company thereof, of--
(1) securities of, or securities the principal or interest of
which is guaranteed by, the United States, a State, or political
subdivision of a State, or any agency, authority, or instrumentality
of any one or more of the foregoing, or any corporation which is
wholly owned, directly or indirectly, by any one or more of the
foregoing;
(2) such other readily marketable securities within the
limitation of such amounts, as the Commission may by rules and
regulations prescribe as appropriate for investment of current funds
and as not detrimental to the public interest or the interest of
investors or consumers; or
(3) such commercial paper and other securities, within such
limitations, as the Commission may by rules and regulations or order
prescribe as appropriate in the ordinary course of business of a
registered holding company or subsidiary company thereof and as not
detrimental to the public interest or the interest of investors or
consumers.
(Aug. 26, 1935, ch. 687, title I, Sec. 9, 49 Stat. 817.)
Transfer of Functions
For transfer of functions of Securities and Exchange Commission,
with certain exceptions, to Chairman of such Commission, see Reorg. Plan
No. 10 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat.
1265, set out under section 78d of this title.
