No radio common carrier, except municipalities, shall issue any securities, as in this chapter defined, without the approval of the commission. Any radio common carrier, except a municipality, desiring to issue any securities may apply to the commission for approval of any proposed issue by filing with the commission and providing to the Office of Regulatory Staff an application, together with a statement verified by its president and secretary, or other proper officers, or two of its incorporators, or by its owner, or owners, if it has no such officers, setting forth:

(1) the amount and character of securities proposed to be issued;

(2) the purpose for which they are to be issued;

(3) the consideration for which they are to be issued;

(4) the description and estimated value of any property, if any, to be acquired through the proposed issue;

(5) the terms and conditions of their issuance;

(6) the financial condition of the radio common carrier and its previous operations so far as relevant. The commission, after giving notice and opportunity to be heard to the radio common carrier and the Office of Regulatory Staff, shall determine whether the purpose of the issue is proper, it shall value the property or services, if any, to be acquired by the issue, if any, it shall find and determine the amount of such securities reasonably necessary for the purpose for which they are to be issued, and to the extent that the commission may approve the proposed issue it shall grant to the radio common carrier a certificate of authority stating:

[1] the amount of such securities reasonably necessary for the purpose for which they are to be issued, and the character of such securities; and

[2] the value of any property or services, if any, to be acquired thereby.

Such radio common carrier shall not issue any securities in greater amounts than specified in such certificate and shall apply the proceeds of such issue to the purposes specified in its petition. Nothing herein contained shall apply to any issue of securities payable within one year from the date thereof, except in case of issues made to refund such short time obligations, but such short time obligations may be renewed by similar obligations without the approval of the commission for an aggregate of not exceeding two years. Nothing herein contained shall be construed to impose or imply any guaranty or obligation as to such securities on the part of the State of South Carolina, or any agency thereof, nor shall the commission by virtue of the approval of the issuance of such securities be deemed to be required to prescribe or approve any rate for the reason that such rate may be necessary to provide funds reasonably sufficient to retire such securities or the interest thereon.

HISTORY: 1975 (59) 598; 2006 Act No. 318, Section 84, eff May 24, 2006.