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U.S. Code as of:
01/19/04
Section 79l. Intercompany and other transactions relating to registered companies
(a) Borrowing from other companies in same system
It shall be unlawful for any registered holding company, by use
of the mails or any means or instrumentality of interstate
commerce, or otherwise, directly or indirectly, to borrow, or to
receive any extension of credit or indemnity, from any
public-utility company in the same holding-company system or from
any subsidiary company of such holding company, but it shall not be
unlawful under this subsection to renew, or extend the time of, any
loan, credit, or indemnity outstanding on August 26, 1935.
(b) Loans to other companies in same system
It shall be unlawful for any registered holding company or
subsidiary company thereof, by use of the mails or any means or
instrumentality of interstate commerce, or otherwise, directly or
indirectly, to lend or in any manner extend its credit to or
indemnify any company in the same holding-company system in
contravention of such rules and regulations or orders as the
Commission deems necessary or appropriate in the public interest or
for the protection of investors or consumers or to prevent the
circumvention of the provisions of this chapter or the rules,
regulations, or orders thereunder.
(c) Payment of dividends or retirement of securities
It shall be unlawful for any registered holding company or any
subsidiary company thereof, by use of the mails or any means or
instrumentality of interstate commerce, or otherwise, to declare or
pay any dividend on any security of such company or to acquire,
retire, or redeem any security of such company, in contravention of
such rules and regulations or orders as the Commission deems
necessary or appropriate to protect the financial integrity of
companies in holding-company systems, to safeguard the working
capital of public-utility companies, to prevent the payment of
dividends out of capital or unearned surplus, or to prevent the
circumvention of the provisions of this chapter or the rules,
regulations, or orders thereunder.
(d) Sale of securities of other companies
It shall be unlawful for any registered holding company, by use
of the mails or any means or instrumentality of interstate
commerce, or otherwise, to sell any security which it owns of any
public-utility company, or any utility assets, in contravention of
such rules and regulations or orders regarding the consideration to
be received for such sale, maintenance of competitive conditions,
fees and commissions, accounts, disclosure of interest, and similar
matters as the Commission deems necessary or appropriate in the
public interest or for the protection of investors or consumers or
to prevent the circumvention of the provisions of this chapter or
the rules, regulations, or orders thereunder.
(e) Solicitation of proxies, powers of attorney, etc., regarding
securities
It shall be unlawful for any person to solicit or to permit the
use of his or its name to solicit, by use of the mails or any means
or instrumentality of interstate commerce, or otherwise, any proxy,
power of attorney, consent, or authorization regarding any security
of a registered holding company or a subsidiary company thereof in
contravention of such rules and regulations or orders as the
Commission deems necessary or appropriate in the public interest or
for the protection of investors or consumers or to prevent the
circumvention of the provisions of this chapter or the rules,
regulations, or orders thereunder.
(f) Negotiations or transactions with other companies in
contravention of rules and regulations of Commission
It shall be unlawful for any registered holding company or
subsidiary company thereof, by use of the mails or any means or
instrumentality of interstate commerce, or otherwise, to negotiate,
enter into, or take any step in the performance of any transaction
not otherwise unlawful under this chapter, with any company in the
same holding-company system or with any affiliate of a company in
such holding-company system in contravention of such rules and
regulations or orders regarding reports, accounts, costs,
maintenance of competitive conditions, disclosure of interest,
duration of contracts, and similar matters as the Commission deems
necessary or appropriate in the public interest or for the
protection of investors or consumers or to prevent the
circumvention of the provisions of this chapter or the rules and
regulations thereunder.
(g) Negotiations or transactions by affiliate in contravention of
rules and regulations of Commission
It shall be unlawful for any affiliate of any public-utility
company, by use of the mails or any means or instrumentality of
interstate commerce, or for any affiliate of any public-utility
company engaged in interstate commerce, or of any registered
holding company or any subsidiary company thereof, by use of the
mails or any means or instrumentality of interstate commerce, or
otherwise, to negotiate, enter into, or take any step in the
performance of any transaction not otherwise unlawful under this
chapter, with any such company of which it is an affiliate, in
contravention of such rules and regulations or orders regarding
reports, accounts, costs, maintenance of competitive conditions,
disclosure of interest, duration of contracts, and similar matters
as the Commission deems necessary or appropriate to prevent the
circumvention of the provisions of this chapter.
(h) Political contributions forbidden
It shall be unlawful for any registered holding company, or any
subsidiary company thereof, by use of the mails or any means or
instrumentality of interstate commerce, or otherwise, directly or
indirectly -
(1) to make any contribution whatsoever in connection with the
candidacy, nomination, election or appointment of any person for
or to any office or position in the Government of the United
States, a State, or any political subdivision of a State, or any
agency, authority, or instrumentality of any one or more of the
foregoing; or
(2) to make any contribution to or in support of any political
party or any committee or agency thereof.
The term "contribution" as used in this subsection includes any
gift, subscription, loan, advance, or deposit of money or anything
of value, and includes any contract, agreement, or promise, whether
or not legally enforceable, to make a contribution.
(i) Representation before Congress or Commissions; filing statement
of employment, compensation, etc.
It shall be unlawful for any person employed or retained by any
registered holding company, or any subsidiary company thereof, to
present, advocate, or oppose any matter affecting any registered
holding company or any subsidiary company thereof, before the
Congress or any Member or committee thereof, or before the
Commission or Federal Power Commission, or any member, officer, or
employee of either such Commission, unless such person shall file
with the Commission in such form and detail and at such time as the
Commission shall by rules and regulations or order prescribe as
necessary or appropriate in the public interest or for the
protection of investors or consumers, a statement of the subject
matter in respect of which such person is retained or employed, the
nature and character of such retainer or employment, and the amount
of compensation received or to be received by such person, directly
or indirectly, in connection therewith. It shall be the duty of
every such person so employed or retained to file with the
Commission within ten days after the close of each calendar month
during such retainer or employment, in such form and detail as the
Commission shall by rules and regulations or order prescribe as
necessary or appropriate in the public interest or for the
protection of investors or consumers, a statement of the expenses
incurred and the compensation received by such person during such
month in connection with such retainer or employment.
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