{"data":{"id":"us-ky/krs-278.300","jurisdiction":"us-ky","citation":"KRS 278.300","heading":"Issuance or assumption of securities by utilities.","body":"(1) No utility shall issue any securities or evidences of indebtedness, or assume any\nobligation or liability in respect to the securities or evidences of indebtedness of any\nother person until it has been authorized so to do by order of the commission.\n(2) Application for authority to issue or assume securities or evidences of indebtedness\nshall be made in such form as the commission prescribes. Every such application\nshall be made under oath, and shall be signed and filed on behalf of the utility by its\npresident, or by a vice president, auditor, comptroller, or other executive officer\nhaving knowledge of the matters set forth and duly designated by the utility. Every\nsuch application shall be placed at the head of the docket of the commission and\ndisposed of promptly within sixty (60) days after it is filed with the commission,\nunless it is necessary for good cause to continue the application for longer time than\nsixty (60) days, in which case the order making the continuance shall state fully the\nfacts that make it necessary.\n(3) The commission shall not approve any issue or assumption unless, after\ninvestigation of the purposes and uses of the proposed issue and the proceeds\nthereof, or of the proposed assumption of obligation or liability, the commission\nfinds that the issue or assumption is for some lawful object within the corporate\npurposes of the utility, is necessary or appropriate for or consistent with the proper\nperformance by the utility of its service to the public and will not impair its ability\nto perform that service, and is reasonably necessary and appropriate for such\npurpose.\n(4) The commission may grant or deny the application in whole or in part, or may grant\nit with such modifications and upon such terms and conditions as the commission\ndeems necessary or appropriate. The order of the commission shall specify that the\nsecurities or evidences of indebtedness, or the proceeds thereof, shall be used only\nfor the lawful purposes specified in the application, and both the application of the\nutility and the order of the commission shall state in general terms the purpose of\nthe issuance or assumption.\n(5) A copy of any order made and entered by the commission under this section, duly\ncertified by the executive director of the commission, shall be su fficient evidence\nfor all purposes of full and complete compliance by the utility with all procedural\nand other matters required precedent to the entry of the order.\n(6) Securities and evidences of indebtedness issued and obligations and liabilities\nassumed by a utility, for which, under the provisions of this section, the\nauthorization of the commission is required, shall comply with the terms and\nconditions of the order of authorization entered prior to the issue or assumption, and\nwhere the order has been fully complied with the validity of the issue or assumption\nshall not be affected by a failure to comply with any provision of this section or rule\nof the commission relating to procedure or other matters preceding the entry of the\norder of authorization or order supplemental thereto.\n(7) The commission may require periodical or special reports from the utility issuing\nany security or evidence of indebtedness. The report shall show, in such detail as the\ncommission requires, the disposition made of such s ecurities or evidences of\nindebtedness, and the application of the proceeds thereof.\n(8) This section does not apply to notes issued by a utility, for proper purposes and not\nin violation of law, that are payable at periods of not more than two (2) years f rom\nthe date thereof, or to like notes, payable at a period of not more than two (2) years\nfrom date thereof, that are issued to pay or refund in whole or in part any such\nnotes, or to renewals of such notes from time to time, not exceeding in the aggregate\nsix (6) years from the date of the issue of the original notes so renewed or refunded.\n(9) Nothing in this section implies any guarantee of securities or evidences of\nindebtedness by the state, or any obligation on the part of the state with respect\nthereto, and nothing in this section limits the power of any court having jurisdiction\nto authorize or cause receiver's certificates or debentures to be issued according to\nthe rules and practice obtaining in receivership proceedings in courts of equity.\n(10) This section does not apply in any instance where the issuance of securities or\nevidences of indebtedness is subject to the supervision or control of the federal\ngovernment or any agency thereof, but the commission may appear as a party to any\nproceeding f iled or pending before any federal agency if the issuance of the\nsecurities or evidences of indebtedness will materially affect any utility over which\nthe commission has jurisdiction.\n(11) This section also does not apply to the issuance of securities or e vidence of\nindebtedness by a utility principally engaged in transportation of gas by pipeline in\ninterstate commerce and subject to the supervision, control or jurisdiction of the\nfederal government or any agency, board or commission thereof.","path":["KRS Chapter 278"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14103","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:30Z","sha256":"003cd2a87a8b84ef9795973f900da91e3d800df570100d12278353aed9984443","source_id":"us-ky","stale":false,"prev":"us-ky/krs-278.295","next":"us-ky/krs-278.310"},"notice":"GroundRules: Original legal text. Not legal advice."}