DEFINITION of SEC Form U-7D
SEC form U-7D is a document that must be filed when a utility holding company leases a utility facility to an operating public utility company. Three copies of the form must be filed within 30 days of lease execution. Holding companies that do not do so are in violation of the Public Utility Holding Company act of 1935. SEC form U-7D is essentially a certificate that summarizes the leasing arrangements. The SEC Form U-7D contains a breakdown of the cost of the facility, as well as financing terms and a description of the facility itself. The term of the lease must also be included, and estimations or substitutions can be made if definitive information is not yet available. An amended form must be filed within 30 days if there is a change of name of the entity, a transfer of beneficial interest, or the lease is changed or terminated.
BREAKING DOWN SEC Form U-7D
Form U-7D is required by rule 7(d) of the Public Utility Holding Company Act of 1935. The Public Utility Holding Company Act was put into effect to protect the public and investors from the oligopoly created by the small number of utilities holding companies that owned and operated a large majority of the country's utility companies.