Hawaii § 269-17 - Issuance of securities.

§ 269-17. Issuance of securities.

A public utility corporation may, on securing the prior approval of the public utilities commission, and not otherwise, except as provided in section 269G-4, issue stocks and stock certificates, bonds, notes, and other evidences of indebtedness, payable at periods of more than twelve months after the date thereof, for the following purposes and no other, namely: for the acquisition of property or for the construction, completion, extension, or improvement of or addition to its facilities or service, or for the discharge or lawful refunding of its obligations or for the reimbursement of moneys actually expended from income or from any other moneys in its treasury not secured by or obtained from the issue of its stocks or stock certificates, or bonds, notes, or other evidences of indebtedness, for any of the purposes stated in this section except maintenance of service, replacements, and substitutions not constituting capital expenditure in cases where the corporation has kept its accounts for those expenditures in a manner that enables the commission to ascertain the amount of moneys so expended and the purposes for which the expenditures were made, and the sources of the funds in its treasury applied to the expenditures. As used in this section, "property" and "facilities" mean property and facilities used in all operations of a public utility corporation regardless of whether included in its public utility operations or rate base. A public utility corporation may not issue securities to acquire property or to construct, complete, extend or improve or add to its facilities or service if the commission determines that the proposed purpose will have a material adverse effect on its public utility operations. All stock and every stock certificate, and every bond, note, or other evidence of indebtedness of a public utility corporation not payable within twelve months, issued without an order of the commission authorizing the same, then in effect, shall be void. [L 1933, c 169, pt of §4; RL 1935, §7955; RL 1945, §4716; RL 1955, §104-16; HRS §269-17; am L 1969, c 276, §1; am L 2025, c 258, §4] Cross References Administrative procedure, see chapter 91. Case Notes Contract for lease of land, which was not a loan and which was not a method of generating capital was not an evidence of indebtedness. 64 H. 289, 639 P.2d 1103 (1982). Cited: 44 H. 634, 635, 361 P.2d 390 (1961); 47 H. 1, 7, 384 P.2d 536 (1963). Previous Vol05_Ch0261-0319 Next