§ 39-1-59 True sale. – (a) To better implement the purposes of §§ 39-1-43 – 39-1-60,inclusive, with a view to maximizing customer savings intended to beaccomplished thereby, in the event that all or a portion of the interest of anelectric distribution company or assignee in a securitization order, includingany intangible transition property arising therefrom, is transferred in atransaction that is approved in the securitization order and which thegoverning documentation expressly states to be a sale or other absolutetransfer of the transferor's right, title and interest in the portion of suchorder and intangible transition property so transferred, then such transfershall be treated as a sale or other absolute transfer of the interest sotransferred, as in a true sale and not as a pledge or other financing thereofand shall be deemed to constitute a sufficient transfer of dominion over suchtransferred portion of the securitization order and the intangible transitionproperty to constitute a true sale. For this purpose, the absolute nature ofsuch a sale or other transfer shall not be affected or impaired in any mannerby, among other things: (i) the assignor's retention of bare legal title tointangible transition property for the purpose of servicing or supervising theservicing of such property and collections with respect thereto; (ii) theassignor's retention, or acquisition, as a part of the assignment transactionor otherwise, of a de minimis equity interest not exceeding five percent (5%)in the intangible transition property for investment purposes, or the provisionof credit enhancement at market rates for the same de minimis portion of suchproperty; (iii) any provision in the securitization order determining the orderin which amounts are deemed collected, on either a priority or ratable basis,in respect of intangible transition charges and other rates or charges,excluding taxes, collected from customers of the electric distribution company,in the event of partial payment; (iv) the fact that only a portion of theintangible transition property is transferred; or (v) the fact that theelectric distribution company or an affiliate thereof acts as the collector ofintangible transition charges in connection with intangible transition property.
(b) Notwithstanding such a sale or other absolute transfer ofintangible transition property, the consideration received by an electricdistribution company or assignee in respect of any such sale or transfer shallnot be subject to any state or local taxes, or any surcharges based on suchtaxes, now or hereafter imposed, nor shall the assignee of intangibletransition property be considered to be a public utility or a party providingelectric services for purposes of this chapter. The electric distributioncompany or other party providing electric services with respect to whichintangible transition charges are authorized and/or required to be imposedshall be the party obligated to collect and/or be liable to pay each of theforegoing taxes with respect to such charges. In addition, notwithstanding suchsale or other absolute transfer, the commission shall continue to havejurisdiction to take such further actions as are required or permitted to betaken with respect to the securitization order in accordance with the terms ofsuch order, and pursuant to the provisions of this chapter, notwithstandingthat the assignee or financing party is not an electric distribution company orother party that would otherwise be subject to the jurisdiction of thecommission.
§ 39-1-59 True sale. – (a) To better implement the purposes of §§ 39-1-43 – 39-1-60,inclusive, with a view to maximizing customer savings intended to beaccomplished thereby, in the event that all or a portion of the interest of anelectric distribution company or assignee in a securitization order, includingany intangible transition property arising therefrom, is transferred in atransaction that is approved in the securitization order and which thegoverning documentation expressly states to be a sale or other absolutetransfer of the transferor's right, title and interest in the portion of suchorder and intangible transition property so transferred, then such transfershall be treated as a sale or other absolute transfer of the interest sotransferred, as in a true sale and not as a pledge or other financing thereofand shall be deemed to constitute a sufficient transfer of dominion over suchtransferred portion of the securitization order and the intangible transitionproperty to constitute a true sale. For this purpose, the absolute nature ofsuch a sale or other transfer shall not be affected or impaired in any mannerby, among other things: (i) the assignor's retention of bare legal title tointangible transition property for the purpose of servicing or supervising theservicing of such property and collections with respect thereto; (ii) theassignor's retention, or acquisition, as a part of the assignment transactionor otherwise, of a de minimis equity interest not exceeding five percent (5%)in the intangible transition property for investment purposes, or the provisionof credit enhancement at market rates for the same de minimis portion of suchproperty; (iii) any provision in the securitization order determining the orderin which amounts are deemed collected, on either a priority or ratable basis,in respect of intangible transition charges and other rates or charges,excluding taxes, collected from customers of the electric distribution company,in the event of partial payment; (iv) the fact that only a portion of theintangible transition property is transferred; or (v) the fact that theelectric distribution company or an affiliate thereof acts as the collector ofintangible transition charges in connection with intangible transition property.
(b) Notwithstanding such a sale or other absolute transfer ofintangible transition property, the consideration received by an electricdistribution company or assignee in respect of any such sale or transfer shallnot be subject to any state or local taxes, or any surcharges based on suchtaxes, now or hereafter imposed, nor shall the assignee of intangibletransition property be considered to be a public utility or a party providingelectric services for purposes of this chapter. The electric distributioncompany or other party providing electric services with respect to whichintangible transition charges are authorized and/or required to be imposedshall be the party obligated to collect and/or be liable to pay each of theforegoing taxes with respect to such charges. In addition, notwithstanding suchsale or other absolute transfer, the commission shall continue to havejurisdiction to take such further actions as are required or permitted to betaken with respect to the securitization order in accordance with the terms ofsuch order, and pursuant to the provisions of this chapter, notwithstandingthat the assignee or financing party is not an electric distribution company orother party that would otherwise be subject to the jurisdiction of thecommission.
§ 39-1-59 True sale. – (a) To better implement the purposes of §§ 39-1-43 – 39-1-60,inclusive, with a view to maximizing customer savings intended to beaccomplished thereby, in the event that all or a portion of the interest of anelectric distribution company or assignee in a securitization order, includingany intangible transition property arising therefrom, is transferred in atransaction that is approved in the securitization order and which thegoverning documentation expressly states to be a sale or other absolutetransfer of the transferor's right, title and interest in the portion of suchorder and intangible transition property so transferred, then such transfershall be treated as a sale or other absolute transfer of the interest sotransferred, as in a true sale and not as a pledge or other financing thereofand shall be deemed to constitute a sufficient transfer of dominion over suchtransferred portion of the securitization order and the intangible transitionproperty to constitute a true sale. For this purpose, the absolute nature ofsuch a sale or other transfer shall not be affected or impaired in any mannerby, among other things: (i) the assignor's retention of bare legal title tointangible transition property for the purpose of servicing or supervising theservicing of such property and collections with respect thereto; (ii) theassignor's retention, or acquisition, as a part of the assignment transactionor otherwise, of a de minimis equity interest not exceeding five percent (5%)in the intangible transition property for investment purposes, or the provisionof credit enhancement at market rates for the same de minimis portion of suchproperty; (iii) any provision in the securitization order determining the orderin which amounts are deemed collected, on either a priority or ratable basis,in respect of intangible transition charges and other rates or charges,excluding taxes, collected from customers of the electric distribution company,in the event of partial payment; (iv) the fact that only a portion of theintangible transition property is transferred; or (v) the fact that theelectric distribution company or an affiliate thereof acts as the collector ofintangible transition charges in connection with intangible transition property.
(b) Notwithstanding such a sale or other absolute transfer ofintangible transition property, the consideration received by an electricdistribution company or assignee in respect of any such sale or transfer shallnot be subject to any state or local taxes, or any surcharges based on suchtaxes, now or hereafter imposed, nor shall the assignee of intangibletransition property be considered to be a public utility or a party providingelectric services for purposes of this chapter. The electric distributioncompany or other party providing electric services with respect to whichintangible transition charges are authorized and/or required to be imposedshall be the party obligated to collect and/or be liable to pay each of theforegoing taxes with respect to such charges. In addition, notwithstanding suchsale or other absolute transfer, the commission shall continue to havejurisdiction to take such further actions as are required or permitted to betaken with respect to the securitization order in accordance with the terms ofsuch order, and pursuant to the provisions of this chapter, notwithstandingthat the assignee or financing party is not an electric distribution company orother party that would otherwise be subject to the jurisdiction of thecommission.
