56-57 - Securities to which chapter is applicable. - Virginia Statutes

§ 56-57. Securities to which chapter is applicable.

A. This chapter shall apply to every stock or stock certificate or otherevidence of interest or ownership, and, except as otherwise provided by §56-65, every bond, note or other evidence of indebtedness, of a publicservice company, which may be issued, and to every obligation or liability asguarantor, endorser, surety or otherwise in respect of the securities of anyother person, firm, association or corporation, when such securities arepayable at periods of twelve months or more after the date thereof, which maybe or may have been assumed after March 24, 1934, notwithstanding the factthat any preparatory steps, whether by the issuance or amendment of acertificate of incorporation, or by the action of the board of directors, orthe stockholders or otherwise, may have been taken prior to such date.

B. Notwithstanding subsection A, this chapter shall not apply to any stock orstock certificate or other evidence of interest or ownership, or any bond,note or other evidence of indebtedness of a public service company thatoperates under an alternative form of regulation approved by the Commissionpursuant to § 56-235.5, unless the Commission rescinds such exemption ashereafter authorized, provided such securities are issued for lawful purposespursuant to § 56-58. Any public service company exempt from this chaptershall instead provide notice to the Commission of the issuance of any stockor stock certificate or other evidence of interest or ownership, or, exceptas otherwise provided by §§ 56-65 and 56-65.1, any bond, note or otherevidence of indebtedness, within ninety days of issuance. The Commission mayrescind the exemption from this chapter provided by this subsection to anypublic service company that operates under an alternative form of regulationapproved by the Commission pursuant to § 56-235.5 if the Commission finds,after notice and an opportunity for a hearing, that such exemption is not inthe public interest.

(1934, p. 225; Michie Code 1942, § 4073(11); 2001, c. 347.)