§ 101. Authority to issue stock, bonds and other forms of\nindebtedness. A telegraph or telephone corporation may, when authorized\nby the commission, issue stock, bonds, notes or other evidences of\nindebtedness payable at periods of more than twelve months after the\ndate thereof, or a receiver of such a corporation, if duly authorized by\nlaw, may issue receiver's certificates, when necessary for the\nacquisition of property, the construction, completion, extension or\nimprovement of its facilities or the improvement or maintenance of its\nservice within the state, or for the discharge or lawful refunding of\nits obligations, or reimbursement of moneys actually expended from the\nincome from any source, within five years next prior to the filing of\nthe application therefor, or for any of such purposes, provided,\nhowever, that no authority shall be granted authorizing such issue for\nreimbursement of moneys expended from income for betterments or\nreplacements unless the applicant shall have kept its accounts and\nvouchers of such expenditures in such manner as to enable the commission\nto ascertain the amount of moneys so expended and the purposes for which\nsuch expenditures were made. Stock may be issued to stockholders as a\nstock dividend provided that there shall have been secured from the\ncommission authority for such issuance and for a transfer of surplus to\ncapital in an amount equal to the par or stated value of the stock so\nauthorized and that the applicant has certified in the application for\nauthority that a sum equal to the amount to be so transferred was\nexpended for the purposes enumerated in this section. Stock may be\nissued to an employee or director of a telegraph or telephone\ncorporation under a stock option plan pursuant to which such corporation\ngrants options to its employees or directors to purchase shares of\nstock, such options to be exercisable for a stated period of time to\npurchase shares of stock at the market value of the stock at the time of\nissuance of the option, provided that there shall have been secured from\nthe commission authority for such issuance and that the applicant has\ncertified in the application for authority that the proceeds from the\nexercise of the stock options are needed for one of the purposes\nenumerated in this section. The issue of stocks, bonds or other\nevidences of indebtedness, within the meaning of this section, shall\ninclude the sale by any such corporation of any such securities\npreviously issued in compliance with the provisions of this section and\nsubsequently reacquired by such corporation, provided, however, for good\ncause shown the commission may exempt from the restriction hereof\nstocks, bonds or other evidences of indebtedness. The application for\nauthority shall state the amount of any such issue and the purposes to\nwhich it or its proceeds are to be applied and shall certify that the\nmoney, property or labor procured or to be procured or paid for by such\nissue or its proceeds has been or is reasonably required for the\npurposes specified in the application for authority, and that such\npurposes are in no part reasonably chargeable to operating expenses or\nto income except in the case of bonds, notes or other evidences of\nindebtedness as may be specifically identified in the application for\nauthority. For the proceeds from a federal loan, a telegraph or\ntelephone corporation shall provide notice to the public service\ncommission of receipt of such issue but shall not be required to file an\napplication for authority. For the purpose of enabling the commission to\ndetermine whether it should authorize such issuance, the commission\nshall have the power to make such inquiry or investigation, hold such\nhearings and examine such witnesses, books, papers, documents or\ncontracts as it may determine of importance in enabling it to reach a\ndetermination. Except in instances where a telegraph or telephone\ncorporation has notified t
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