S.C. Code Regs. § 103-506

Current through Register Vol. 48, No. 5, May 24, 2024

Section 103-506 - Security Issues

A. No utility shall issue any securities without the approval of the commission. This rule shall not apply to any issue of securities payable within one year from the date of issue, except in case of subsequent issues made to refund such short-term obligations; but such short-term obligations may be renewed by similar obligations without the approval of the commission for an aggregate period not exceeding two years.

B. Any utility desiring to issue any securities may apply to the commission for approval of the proposed issue by filing an application with the commission and serving a copy on the ORS together with a statement verified by (1) its president and secretary or other appropriate officers; (2) two of its incorporators; or (3) by its owner or owners, if it is unincorporated, setting forth:

(a) The amount and character of securities proposed to be issued;

(b) The purpose for which they are to be issued;

(c) The consideration for which they are to be issued;

(d) The description and estimated value of the property, if any, to be acquired through the proposed issue;

(e) The terms and conditions of the issuance; and

(f) The financial condition of the utility and its operations so far as relevant.

C. The commission shall determine whether the purpose of the issue is proper; shall value the property or services, if any, to be acquired by the issue; shall find and determine the amount of such securities reasonably necessary for the purpose for which they are to be issued. This determination shall follow such investigation as may be necessary, wherein the utility and any other interested party shall be entitled to be heard.

D. To the extent that the commission may approve the proposed issue, it shall grant to the utility a Certificate of Authority stating the character of the securities, the amount reasonably necessary for the purpose for which they are to be issued, and the value of any property or services, if any, to be acquired. This certification shall not impose or imply any guaranty or obligation as to such securities on the part of the commission.

S.C. Code Regs. 103-506

Amended by State Register Volume 31, Issue No. 5, eff May 25, 2007.