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

Statute: § 551.201(5), Wis. Stats.

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 in order to claim this exemption.

Frequently asked questions:

Q: Is the exemption self-executing?

    A: Yes. No filing or Consent to Service of Process is required.

Important interpretive letters:

11/6/84 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 § 551.22(6), Wis. Stats.   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 credit-worthiness of the public utility, not of the trust lessors, was the basis upon which prospective purchasers made their investment decision.

History:  Predecessor statute 551.22(6), Wis Stats., adopted January 1, 1970. Language is different from Uniform Securities Act of 1956 § 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 Repealed and recreated effective January 1, 2009.

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