
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 16USC825d]

 
                         TITLE 16--CONSERVATION
 
         CHAPTER 12--FEDERAL REGULATION AND DEVELOPMENT OF POWER
 
     SUBCHAPTER III--LICENSEES AND PUBLIC UTILITIES; PROCEDURAL AND 
                        ADMINISTRATIVE PROVISIONS
 
Sec. 825d. Officials dealing in securities


(a) Benefits; making or declaring dividends out of capital account

    It shall be unlawful for any officer or director of any public 
utility to receive for his own benefit, directly or indirectly, any 
money or thing of value in respect of the negotiation, hypothecation, or 
sale by such public utility of any security issued or to be issued by 
such public utility, or to share in any of the proceeds thereof, or to 
participate in the making or paying of any dividends of such public 
utility from any funds properly included in capital account.

(b) Interlocking directorates

                           (1) In general

        After 6 months from August 26, 1935, it shall be unlawful for 
    any person to hold the position of officer or director of more than 
    one public utility or to hold the position of officer or director of 
    a public utility and the position of officer or director of any 
    bank, trust company, banking association, or firm that is authorized 
    by law to underwrite or participate in the marketing of securities 
    of a public utility, or officer or director of any company supplying 
    electrical equipment to such public utility, unless the holding of 
    such positions shall have been authorized by order of the 
    Commission, upon due showing in form and manner prescribed by the 
    Commission, that neither public nor private interests will be 
    adversely affected thereby. The Commission shall not grant any such 
    authorization in respect of such positions held on August 26, 1935, 
    unless application for such authorization is filed with the 
    Commission within sixty days after that date.

                          (2) Applicability

        (A) In general

            In the circumstances described in subparagraph (B), 
        paragraph (1) shall not apply to a person that holds or proposes 
        to hold the positions of--
                (i) officer or director of a public utility; and
                (ii) officer or director of a bank, trust company, 
            banking association, or firm authorized by law to underwrite 
            or participate in the marketing of securities of a public 
            utility.

        (B) Circumstances

            The circumstances described in this subparagraph are that--
                (i) a person described in subparagraph (A) does not 
            participate in any deliberations or decisions of the public 
            utility regarding the selection of a bank, trust company, 
            banking association, or firm to underwrite or participate in 
            the marketing of securities of the public utility, if the 
            person serves as an officer or director of a bank, trust 
            company, banking association, or firm that is under 
            consideration in the deliberation process;
                (ii) the bank, trust company, banking association, or 
            firm of which the person is an officer or director does not 
            engage in the underwriting of, or participate in the 
            marketing of, securities of the public utility of which the 
            person holds the position of officer or director;
                (iii) the public utility for which the person serves or 
            proposes to serve as an officer or director selects 
            underwriters by competitive procedures; or
                (iv) the issuance of securities of the public utility 
            for which the person serves or proposes to serve as an 
            officer or director has been approved by all Federal and 
            State regulatory agencies having jurisdiction over the 
            issuance.

(c) Statement of prior positions; definitions

    (1) On or before April 30 of each year, any person, who, during the 
calendar year preceding the filing date under this subsection, was an 
officer or director of a public utility and who held, during such 
calendar year, the position of officer, director, partner, appointee, or 
representative of any other entity listed in paragraph (2) shall file 
with the Commission, in such form and manner as the Commission shall by 
rule prescribe, a written statement concerning such positions held by 
such person. Such statement shall be available to the public.
    (2) The entities listed for purposes of paragraph (1) are as 
follows--
        (A) any investment bank, bank holding company, foreign bank or 
    subsidiary thereof doing business in the United States, insurance 
    company, or any other organization primarily engaged in the business 
    of providing financial services or credit, a mutual savings bank, or 
    a savings and loan association;
        (B) any company, firm, or organization which is authorized by 
    law to underwrite or participate in the marketing of securities of a 
    public utility;
        (C) any company, firm, or organization which produces or 
    supplies electrical equipment or coal, natural gas, oil, nuclear 
    fuel, or other fuel, for the use of any public utility;
        (D) any company, firm, or organization which during any one of 
    the 3 calendar years immediately preceding the filing date was one 
    of the 20 purchasers of electric energy which purchased (for 
    purposes other than for resale) one of the 20 largest annual amounts 
    of electric energy sold by such public utility (or by any public 
    utility which is part of the same holding company system) during any 
    one of such three calendar years;
        (E) any entity referred to in subsection (b) of this section; 
    and
        (F) any company, firm, or organization which is controlled by 
    any company, firm, or organization referred to in this paragraph.

On or before January 31 of each calendar year, each public utility shall 
publish a list, pursuant to rules prescribed by the Commission, of the 
purchasers to which subparagraph (D) applies, for purposes of any filing 
under paragraph (1) of such calendar year.
    (3) For purposes of this subsection--
        (A) The term ``public utility'' includes any company which is a 
    part of a holding company system which includes a registered holding 
    company, unless no company in such system is an electric utility.
        (B) The terms ``holding company'', ``registered holding 
    company'', and ``holding company system'' have the same meaning as 
    when used in the Public Utility Holding Company Act of 1935 [15 
    U.S.C. 79 et seq.].

(June 10, 1920, ch. 285, pt. III, Sec. 305, as added Aug. 26, 1935, ch. 
687, title II, Sec. 213, 49 Stat. 856; amended Pub. L. 95-617, title II, 
Sec. 211(a), Nov. 9, 1978, 92 Stat. 3147; Pub. L. 106-102, title VII, 
Sec. 737, Nov. 12, 1999, 113 Stat. 1479.)

                       References in Text

    The Public Utility Holding Company Act of 1935, referred to in 
subsec. (c)(3)(B), is act Aug. 26, 1935, ch. 687, title I, 49 Stat. 838, 
as amended, which is classified generally to chapter 2C (Sec. 79 et 
seq.) of Title 15, Commerce and Trade. For complete classification of 
this Act to the Code, see section 79 of Title 15 and Tables.


                               Amendments

    1999--Subsec. (b). Pub. L. 106-102 inserted subsec. heading, 
designated existing provisions as par. (1), inserted heading, and 
substituted ``After 6'' for ``After six'', and added par. (2).
    1978--Subsec. (c). Pub. L. 95-617 added subsec. (c).


                    Effective Date of 1978 Amendment

    Section 211(b) of Pub. L. 95-617 provided that: ``No person shall be 
required to file a statement under section 305(c)(1) of the Federal 
Power Act [subsec. (c)(1) of this section] before April 30 of the second 
calendar year which begins after the date of the enactment of this Act 
[Nov. 9, 1978] and no public utility shall be required to publish a list 
under section 305(c)(2) of such Act [subsec. (c)(2) of this section] 
before January 31 of such second calendar year.''

                          Transfer of Functions

    Federal Power Commission terminated and its functions with regard to 
regulation of mergers and securities acquisitions under this chapter 
transferred to Federal Energy Regulatory Commission by sections 
7172(a)(1)(F) and 7293 of Title 42, The Public Health and Welfare.
    Executive and administrative functions of Federal Power Commission, 
with certain reservations, transferred to Chairman of such Commission, 
with authority vested in him to authorize their performance by any 
officer, employee, or administrative unit under his jurisdiction, by 
Reorg. Plan No. 9 of 1950, Secs. 1, 2, eff. May 24, 1950, 15 F.R. 3175, 
64 Stat. 1265, set out as a note under section 792 of this title.
