Ohio § 4905.40
Full text of Ohio Ohio Revised Code § 4905.40, with citation guidance and answers to common questions.
§ 4905.40.
(A) A public utility or a railroad may, when authorized by order of the public utilities
commission, issue stocks, bonds, notes, and other evidences of indebtedness, payable
at periods of more than twelve months after their date of issuance, when necessary: (1) For the acquisition of property, the construction, completion, extension, renewal,
or improvement of its facilities, or the improvement of its service; or (2) For reorganization or readjustment of its indebtedness and capitalization, for the
discharge or lawful refunding of its obligation, or for the reimbursement of moneys
actually expended for such purposes from income or from any other moneys in the treasury
of the public utility or railroad not secured or obtained from the issue of stocks,
bonds, notes, or other evidences of indebtedness of such public utility or railroad. No reimbursement of moneys expended for such purposes from income or other moneys
in the treasury shall be authorized unless the applicant has kept its accounts and
vouchers of such expenditures in such manner as to enable the commission to ascertain
the amount and purposes of such expenditures. (B) Any public utility, subject to the jurisdiction of the commission, may, when authorized
by the commission, issue shares of common capital stock to acquire or pay for shares
of common capital stock of a public utility of this or an adjoining state whose property
is so located as to permit the operation of the properties of such utilities as an
integrated system if the applicant owns, or by this issue will acquire, not less than
sixty-five per cent of the issued and outstanding common capital shares of the company
whose shares are to be acquired, and if the consideration to be capitalized by the
acquiring company does not exceed the par or stated value at which the shares so acquired
were issued. (C) Any bonds, notes, or other evidences of indebtedness payable at periods of more than
twelve months after their date may be issued as provided in sections 4905.40 to 4905.43 of the Revised Code , regardless of the amount of the capital stock of the public utility or railroad,
subject to the approval of the commission of the excess of such bonds, notes, or other
evidences of indebtedness above the amount of the capital stock of such public utility
or railroad. (D) The commission shall authorize on the best terms obtainable such issues of stocks,
bonds, and other evidences of indebtedness as are necessary to enable any public utility
to comply with any contract made between such public utility and any municipal corporation
prior to June 30, 1911. (E) The commission may authorize a public utility that is an electric light company to
issue equity securities, or debt securities having a term of more than twelve months
from the date of issuance, for the purpose of yielding to the company the capacity
to acquire a facility that produces fuel for the generation of electricity. (F) In any proceeding under division (A)(1) of this section initiated by a public utility,
the commission shall determine and set forth in its order: (1) Whether the purpose to which the issue or any proceeds of it shall be applied was
or is reasonably required by the utility to meet its present and prospective obligations
to provide utility service; (2) Whether the amount of the issue and the probable cost of such stocks, bonds, notes,
or other evidences of indebtedness is just and reasonable; (3) What effect, if any, the issuance of such stocks, bonds, notes, or other evidences
of indebtedness and the cost thereof will have upon the present and prospective revenue
requirements of the utility. (G) Sections 4905.40 to 4905.42 of the Revised Code do not apply to stocks, bonds, notes, or other evidence of indebtedness issued for
the purpose of financing oil or natural gas drilling, producing, gathering, and associated
activities and facilities by a producer which supplies to no more than twenty purchasers
only such gas as is produced, gathered, or purchased by such producer within this
state. (H) Each public utility seeking authorization from the commission for the issuance of
securities to finance the installation, construction, extension, or improvement of
an air quality facility, as defined in section 3706.01 of the Revised Code , shall consider the availability of financing therefor from the Ohio air quality
development authority and shall demonstrate to the commission that the proposed financing
will be obtained on the best terms obtainable. (I) This section does not apply to a telephone company.
Frequently Asked Questions About Ohio § 4905.40
What does Ohio Revised Code § 4905.40 cover?
Section 4905.40 is part of the Ohio Revised Code, the codified statutory law of Ohio. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Ohio § 4905.40?
A common citation format is "Ohio Revised Code § 4905.40" (Ohio). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Ohio law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Ohio official source linked on this page or consult a licensed Ohio attorney.
How does Ohio § 4905.40 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Ohio can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Ohio.