§ 232 - -Sales, leases, pledges, bonds, notes; hearings - Vermont Statutes

§ 232. -Sales, leases, pledges, bonds, notes; hearings

(a) Except in connection with replacement or exchange, an individual, partnership or unincorporated association conducting such public service business shall not make a sale or lease or series of sales or leases in any one calendar year constituting 10 percent or more of its property located within this state and actually used in or required for public service operations or mortgage or pledge any of its property or issue any bonds, notes or other evidences of indebtedness without the consent of the public service board, given on petition and after opportunity for hearing and a finding that the same will promote the general good of the state. Notice of such hearing shall be given as the board directs.

(b) Notwithstanding subsection (a) of this section, an individual, partnership or unincorporated association may issue evidences of indebtedness payable within one year from date of issue without such consent provided such borrowing is necessary as an emergency to restore service immediately after disaster or provided its total evidences of indebtedness so payable within one year do not exceed 20 percent of its total assets. If such evidences of indebtedness in an amount which would cause its total evidences of indebtedness so payable within one year to exceed 20 percent of its total assets, then it shall give the board notice in writing of its intention so to do at least 10 days before the date of the proposed issue. If the board determines after considering the notice and the said individual, partnership or unincorporated association's report to the board that further inquiry is warranted, it shall order such individual, partnership or unincorporated association not to issue such evidences of indebtedness under this subsection without the consent of the board given after opportunity for hearing, provided, however, that if the board does not make such an order within 10 days from the time it receives such notice under this subsection then the individual, partnership or unincorporated association may issue such evidences of indebtedness without the consent of the public service board and the board shall so notify such individual, partnership or unincorporated association in writing.

(c) Nothing in this section shall restrict the right of a common carrier by motor vehicle to issue evidences of indebtedness payable within one year from the date of issue without prior notice to or consent by the board. (Amended 1959, No. 329 (Adj. Sess.), § 39(b), eff. March 1, 1961; 1993, No. 21, § 9, eff. May 12, 1993.)