# Securities and Liens

- **operation:** document
- **citation:** 4 CCR 723-4 Rule 4105
- **title:** Securities and Liens
- **source type:** regulation
- **agency:** Colorado Public Utilities Commission
- **status:** current
- **official:** true
- **published on:** Not available
- **effective on:** Not available
- **summary:** (a) Subject to the exception contained in paragraph (h) of this rule, a utility which either derives more than five percent of its consolidated gross revenues in Colorado as a public utility or derives a lesser percentage if its revenues are earned by supplying an amount of energy which equals five 
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- **app url:** https://regulus.evalyn.ai/document/co-ccr-4-723-4-4105
- **source url:** https://www.sos.state.co.us/CCR/DisplayRule.do?action=ruleinfo&ruleId=2260&deptID=18&agencyID=96&deptName=Department%20of%20Regulatory%20Agencies&agencyName=Public%20Utilities%20Commission&seriesNum=4%20CCR%20723-4
**body:**

(a) Subject to the exception contained in paragraph (h) of this rule, a utility which
either derives more than five percent of its consolidated gross revenues in
Colorado as a public utility or derives a lesser percentage if its revenues are
earned by supplying an amount of energy which equals five percent or more of
Colorado's consumption shall file an application for Commission approval of any
proposal to issue or to assume any security or to create a lien.
(b) An application for the issuance or assumption of securities with a maturity of 12
months or more or to create a lien shall include, in the following order and
specifically identified, the following information, either in the application or in
appropriately identified attachments:
(I) all information required in paragraphs 4002(b) and 4002(c);
(II) the resolution of the applying utility’s board of directors approving the
issuance, or assumption of the securities or to create a lien, together with,
as applicable and available, the proposed indenture requirements, the
mortgage note, the amendment to the loan contract, and the contract for
sale of securities or creation of a lien;
(III) a statement describing each short-term and long-term indebtedness
outstanding on the date of the most recent balance sheet;
(IV) a statement describing the classes and amounts of capital stock
authorized by the articles of incorporation and the amount by each class of
capital stock outstanding on the date of the most recent balance sheet;
(V) a statement of capital structure showing common equity, long-term debt,
preferred stock, if any, and pro forma capital structure on the date of the
most recent balance sheet giving effect to the issuance of the proposed
securities. Debt and equity percentages to total capitalization, actual and
pro forma, shall be shown;
(VI) a statement of the amount and rate of dividends declared and paid, or the
amount and year of capital credits assigned and capital credits refunded,
during the previous four calendar years including the present year to the
date of the most recent balance sheet;

(VII) a statement describing the type and amount of securities to be issued; the
anticipated interest rate or dividend rate; the redemption or sinking fund
provisions, if any; and, within ten days of their filing with the Securities and
Exchange Commission, the registration statement, related forms, and
preliminary prospectus filed with the Securities and Exchange
Commission relating to the proposed issuance;
(VIII) a statement of proposed uses, including construction, to which the funds
will be or have been applied and a concise statement of the need for the
funds; and
(IX) a statement of the estimated cost of financing.
(c) For applications for the creation of a lien on the applying utility's property situated
within the State of Colorado where the creation of the lien is not related to the
issuance or assumption of a security, the application shall also include, in the
following order and specifically identified, the following information, either in the
application or in appropriately identified attachments:
(I) a description of the property which will be subject to the lien;
(II) the amount of the lien;
(III) the proposed use of the funds to be received from the lien;
(IV) the estimated cost for the creation of the lien;
(V) the anticipated duration of the lien;
(VI) the anticipated release date of the lien;
(VII) the retirement payment plan to release the lien;
(VIII) a description of how the applying utility will ensure that neither the creation
of the lien nor the use of the proceeds will violate § 40-3-114, C.R.S.;
(IX) a statement that, for the duration of the lien, the applying utility will advise
the Commission within ten days of any bankruptcy, foreclosure, or
liquidation proceeding; and
(X) a statement that the applying utility will advise the Commission within ten
days of any deviation from its lien retirement payment plan;
(d) The Commission shall issue notice of the application, which shall set a ten-day
intervention period and a hearing date.

(e) Customer notice. Within three days after the filing of an application to issue or to
assume a security, the applying utility shall publish notice of the filing of the
application in a newspaper of general circulation. The notice shall include, in
addition to the information required by subparagraphs 4002(d)(I) - (XII), the
address of the applicant.
(f) The applying utility shall file with the Commission the published notice and an
affidavit of publication as soon as possible after the filing of the application. The
Commission shall not grant the application without the notice and the affidavit of
publication.
(g) The Commission shall give priority to an application made pursuant to this rule
and shall grant or deny the application within 30 days after filing, unless the
Commission, for good cause shown, enters an order granting an extension and
stating fully the facts necessitating the extension. The Commission shall approve
or disapprove an application made pursuant to this rule by written order.
(h) Pursuant to § 40-1-104, C.R.S., a utility may issue, renew, extend or assume
liability on securities, other than stocks, with a maturity date of not more than 12
months after the date of issuance, whether secured or unsecured, without
application to or order of the Commission provided that no such securities so
issued shall be refunded, in whole or in part, by any issue of securities having a
maturity of more than 12 months except on application to and approval of the
Commission.
(i) Any security requiring Commission approval, but issued or assumed without such
approval, shall be void.
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