                                 CODE OF VIRGINIA

ISSUE OF SECURITIES A SPECIAL PRIVILEGE SUBJECT TO REGULATION (§ 56-56)

The power of public service companies to issue stocks and stock certificates or
other evidences of interest or ownership, and bonds, notes and other evidences
of indebtedness and to create liens on their property situated within this
Commonwealth is a special privilege, the right of supervision, regulation,
restriction, and control of which is and shall continue to be vested in the
Commonwealth; and such power shall be exercised as provided by law and under
such rules and regulations as the Commission may prescribe; provided that this
section shall not apply to obligations incurred for purchase of machinery or
equipment where such obligations are secured by conditional sales contracts.

HISTORY: 1934, p. 221; Michie Code 1942, § 4073(2); 1958, c. 11.