AZ Rev Stat § 40-303 (2021)
2021 Arizona Revised Statutes|Title 40 - Public Utilities and Carriers|§ 40-303 - Validity of stock certificates or evidences of indebtedness; violation of law or commission authorizations; classification

40-303.  Validity of stock certificates or evidences of indebtedness;  violation of law or commission authorizations;  classification A. All stock and every stock certificate,  and every bond,  note or other evidence of indebtedness of a public service corporation,  issued without a valid order of the commission authorizing the issue,  or if issued with the authorization of the commission but not conforming to the order of authorization of the commission,  is void,  but no failure in any other respect to comply with the terms or conditions of the order of authorization of the commission shall make the issue void,  except as to a person taking the issue other than in good faith and for value and without actual notice. B. Every public service corporation which,  directly or indirectly,  issues or causes to be issued any stock or stock certificate,  bond,  note or other evidence of indebtedness not in conformity with the order of the commission authorizing the issue,  or contrary to law,  or which applies proceeds from the sale thereof,  or any part thereof,  to any purpose other than the purpose specified in the commission order,  or to any purpose specified in the order in excess of the amount in the order authorized for such purpose,  is subject to a penalty of not less than five hundred nor more than twenty thousand dollars for each offense. C. A person is guilty of a class 4 felony who: 1. Knowingly authorizes,  directs,  aids in,  issues or executes any stock or stock certificate,  bond,  note or other evidence of indebtedness not in conformity with the order of the commission authorizing such,  or contrary to law. 2. In any proceeding before the commission knowingly makes any false statement or representation,  or,  with knowledge of its falsity,  files or causes to be filed with the commission any false statement or representation,  which may tend to influence the commission to make an order authorizing the issue of any stock or stock certificate,  bond,  note or other evidence of indebtedness,  or which results in procuring from the commission the making of any such order. 3. With knowledge that any false statement or representation was made to the commission in any proceeding tending in any way to influence the commission to make such order,  issues,  executes or negotiates,  or causes to be issued,  executed or negotiated any stock or stock certificate,  bond,  note or other evidence of indebtedness. 4. Directly or indirectly,  knowingly applies,  or causes or assists to be applied the proceeds or any part thereof,  from the sale of any stock or stock certificate,  bond,  note or other evidence of indebtedness,  to any purpose not specified in the commission order or to any purpose in excess of the amount authorized for such purpose. 5. With knowledge that any stock or stock certificate,  bond,  note or other evidence of indebtedness has been issued or executed in violation of any of the provisions of this article,  negotiates,  or causes the same to be negotiated.