Nevada Revised Statutes 704.323 – Issuance of security or assumption of obligation by privately owned public utility subject to authorization by Commission; exceptions
1. No privately owned public utility organized under the laws of and operating in the State of Nevada shall issue any security, or assume any obligation as guarantor, endorser, surety or otherwise, in respect of any security of any other person, firm or corporation, unless and until, and only to the extent, authorized by a written order of the Commission.
Terms Used In Nevada Revised Statutes 704.323
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
2. The provisions of subsection 1 shall not apply to the issue or renewal of, or assumption of liability on, a note or draft maturing not more than 1 year after the date of such issue, renewal or assumption of liability, but in the case of privately owned electric or combination electric utilities subject to the jurisdiction of the Commission the provisions of subsection 1 shall apply to all security issues, or renewals or assumption of obligations as guarantor, endorser, surety or otherwise, having a maturity of 1 year or less where the combined sum of such security issues, renewals or assumptions exceeds $1,000,000 or 5 percent of the par value of the other securities of the public utility then outstanding. In case of securities having no par value the par value for purposes of this subsection shall be the fair market value as of the date of issue of the privately owned or combination electric utilities, whichever sum is greater.