The California Public Utilities Commission was recently presented with applications from two public utilities requesting approval of bond offerings carrying an interest rate greater than that prescribed by California's usury laws. The authors comment on the solutions proposed by the utilities to prevent application of the usury laws to their offerings, and discuss the Commission's ruling that the offerings were not subject to the proscriptions of the usury laws.
Richard D. Gravelle and Ira R. Alderson Jr.,
Public Utility Debt Securities: A Transaction Exempt from the Usury Law,
27 Hastings L.J. 825
Available at: https://repository.uclawsf.edu/hastings_law_journal/vol27/iss4/3