Missouri Revised Statutes













Chapter 393

Gas, Electric, Water, Heating and Sewer Companies

←393.190

Section 393.200.1

393.210→

August 28, 2015

Approval of issues of stocks, bonds and other forms of indebtedness.

393.200. 1. A gas corporation, electrical corporation, water corporation

or sewer corporation organized or existing or hereafter incorporated under or

by virtue of the laws of this state may issue stocks, bonds, notes or other

evidences of indebtedness payable at periods of more than twelve months after

the date thereof, when necessary for the acquisition of property, the

construction, completion, extension or improvement of its plant or system, or

for the improvement or maintenance of its 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 the treasury of

the corporation not secured or obtained from the issue of stocks, bonds,

notes or other evidence of indebtedness of such corporation, within five

years next prior to the filing of an application with the commission for the

required authorization, for any of the aforesaid purposes except maintenance

of service and except replacements in cases where the applicant shall have

kept its accounts and vouchers of such expenditure in such manner as to

enable the commission to ascertain the amount of money so expended and the

purposes for which such expenditure was made; provided, and not otherwise,

that there shall have been secured from the commission an order authorizing

such issue, and the amount thereof, and stating the purposes to which the

issue or proceeds thereof are to be applied, and that, in the opinion of the

commission, the money, property or labor to be procured or paid for by the

issue of such stock, bonds, notes or other evidence of indebtedness is or has

been reasonably required for the purposes specified in the order, and that

except as otherwise permitted in the order in the case of bonds, notes and

other evidence of indebtedness, such purposes are not in whole or in part

reasonably chargeable to operating expenses or to income.



2. Nothing herein contained shall prohibit the commission from giving

its consent to the issue of bonds, notes or other evidence of indebtedness

for the reimbursement of moneys heretofore actually expended from income for

any of the aforesaid purposes, except maintenance of service or replacements,

prior to five years next preceding the filing of an application therefor, by

any sewer corporation, if in the judgment of the commission such consent

should be granted, provided application for such consent shall be made prior

to January 1, 1968. For the purpose of enabling it to determine whether it

should issue such an order, the commission shall make such inquiry or

investigation, hold such hearings and examine such witnesses, books, papers,

documents and contracts as it may deem of importance in enabling it to reach

a determination. Such sewer corporation shall not without the consent of the

commission apply said issue or any proceeds thereof to any purpose not

specified in such order.



3. Such gas corporation, electrical corporation, water corporation or

sewer corporation may issue notes, for proper corporate purposes and not in

violation of any provision of this or any other law, payable at periods of

not more than twelve months without such consent; but no such notes shall, in

whole or in part, directly or indirectly, be refunded by any issue of stock

or bonds or by any evidence of indebtedness running for more than twelve

months without the consent of the commission; provided, however, that the

commission shall have no power to authorize the capitalization of any

franchise to be a corporation or to authorize the capitalization of any

franchise or the right to own, operate or enjoy any franchise whatsoever in

excess of the amount, exclusive of any tax or annual charge, actually paid to

the state or to any political subdivision thereof as the consideration for

the grant of such franchise or right. Nor shall the capital stock of a

corporation, formed by the merger or consolidation of two or more other

corporations, exceed the sum of the capital stock of the corporations, so

consolidated, at the par value thereof, or such sum and any additional sum

actually paid in cash; nor shall any contract for consolidation or lease be

capitalized in the stock of any corporation whatsoever; nor shall any

corporation hereafter issue any bonds against or as a lien upon any contract

for consolidation or merger.



(RSMo 1939 § 5652, A.L. 1967 p. 578)



Prior revisions: 1929 § 5196; 1919 § 10484







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