[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC824c]
TITLE 16--CONSERVATION
CHAPTER 12--FEDERAL REGULATION AND DEVELOPMENT OF POWER
SUBCHAPTER II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN
INTERSTATE COMMERCE
Sec. 824c. Issuance of securities; assumption of liabilities
(a) Authorization by Commission
No public utility shall issue any security, or assume any obligation
or liability as guarantor, indorser, surety, or otherwise in respect of
any security of another person, unless and until, and then only to the
extent that, upon application by the public utility, the Commission by
order authorizes such issue or assumption of liability. The Commission
shall make such order only if it finds that such issue or assumption (a)
is for some lawful object, within the corporate purposes of the
applicant and compatible with the public interest, which is necessary or
appropriate for or consistent with the proper performance by the
applicant of service as a public utility and which will not impair its
ability to perform that service, and (b) is reasonably necessary or
appropriate for such purposes. The provisions of this section shall be
effective six months after August 26, 1935.
(b) Application approval or modification; supplemental orders
The Commission, after opportunity for hearing, may grant any
application under this section in whole or in part, and with such
modifications and upon such terms and conditions as it may find
necessary or appropriate, and may from time to time, after opportunity
for hearing and for good cause shown, make such supplemental orders in
the premises as it may find necessary or appropriate, and may by any
such supplemental order modify the provisions of any previous order as
to the particular purposes, uses, and extent to which, or the conditions
under which, any security so theretofore authorized or the proceeds
thereof may be applied, subject always to the requirements of subsection
(a) of this section.
(c) Compliance with order of Commission
No public utility shall, without the consent of the Commission,
apply any security or any proceeds thereof to any purpose not specified
in the Commission's order, or supplemental order, or to any purpose in
excess of the amount allowed for such purpose in such order, or
otherwise in contravention of such order.
(d) Authorization of capitalization not to exceed amount paid
The Commission shall not authorize the capitalization of the right
to be a corporation or of any franchise, permit, or contract for
consolidation, merger, or lease in excess of the amount (exclusive of
any tax or annual charge) actually paid as the consideration for such
right, franchise, permit, or contract.
(e) Notes or drafts maturing less than one year after issuance
Subsection (a) of this section shall not apply to the issue or
renewal of, or assumption of liability on, a note or draft maturing not
more than one year after the date of such issue, renewal, or assumption
of liability, and aggregating (together with all other then outstanding
notes and drafts of a maturity of one year or less on which such public
utility is primarily or secondarily liable) not more than 5 per centum
of the par value of the other securities of the public utility then
outstanding. In the case of securities having no par value, the par
value for the purpose of this subsection shall be the fair market value
as of the date of issue. Within ten days after any such issue, renewal,
or assumption of liability, the public utility shall file with the
Commission a certificate of notifica
