Public Utility and Public Utility Holding Company-Issued Securities, Railroad and Other Common Carrier-Issued Securities, and Public Service Corporation-Issued Securities

 ​​​​​​​​Statute: Wis. Stat. s. 551.201(5)

Used for: Securities issued or guaranteed by any railroad, other common carrier, public service corporation, public utility or public utility holding company, which is subject to regulation in respect of the issuance or guarantee of the security by a governmental authority of the United States, any state, Canada, or any Canadian province, or regulated as to its rates and charges by the United States or any state.

Filing requirement: Self-executing. No filing or Consent to Service of Process is necessary to claim this exemption.

Important interpretive letters:

November 6, 1984 letter re: Colorado-Ute Electric Association, Inc. Bonds sold incident to the financing of an electric generating unit constructed by a public utility regulated under Colorado law met the requirements for the exemption under Wis. Stat. s. 551.22(6).   In this case, the bonds were not direct obligations of or guaranteed by the public utility; rather, payments for refunding lessor notes to be received by trust lessors from the utility would be sufficient to pay in full the principal of, any premium and interest on the bonds when due. The financial condition and creditworthiness of the public utility, not of the trust lessors, was the basis upon which prospective purchasers made their investment decision.

History: Predecessor statute Wis. Stat. s. 551.22(6) adopted January 1, 1970. Language is different from Uniform Securities Act of 1956 s. 402(a)(7), which is the Uniform Act section that parallels this statutory section. Repealed and recreated effective January 1, 2009.

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