§ 39-1-60 Commingling. – The validity of the interest of an assignee or secured party in intangibletransition property, and in all revenues or other proceeds arising in respectof such property whenever realized, as herein provided, and the relativepriority of the security interest of a secured party therein, when perfected inaccordance with the rules of the commission established pursuant to §39-1-56, shall not be defeated or adversely affected by the commingling of anysuch revenues or other proceeds with other funds, including those of theelectric distribution company or assignee, a successor to either such party,another party providing electric service as described in § 39-1-45(4) or aparty performing collection functions on behalf of any of the foregoing. All ofthe foregoing parties shall for purposes of this section be referred to as a"collection party". Nor shall such interest be defeated by the existence of anysecurity interest in a deposit account of any such collection party perfectedunder Article 9, commencing with § 9-101, of the Uniform Commercial Code(chapter 9 of title 6A), in which such revenues or other proceeds may have beendeposited; and, to the extent that moneys of an assignee of intangibletransition property are at any time held in a deposit or other account of acollection party, such moneys shall be considered to be held in trust for thebenefit of such assignee. For this purpose:
(1) An assignee of intangible transition property arisingunder a securitization order shall have a perfected interest, and the holdersof a perfected security interest in intangible transition property of theelectric distribution company or assignee arising under such order shall have aperfected security interest, in all cash and deposit accounts of any collectionparty in which amounts collected, recovered or received in respect ofintangible transition charges pursuant to such order have been deposited andcommingled with other funds, provided, that any such perfected securityinterest in deposit accounts of the electric distribution company or assigneeor a successor thereof, if such party is the debtor of the party holding theperfected security interest, shall be subject to any applicable right ofset-off and, in the event of insolvency of the electric distribution company orassignee or a successor thereof, the perfected security interest in intangibletransition property of such insolvent party and any revenues or other proceedsarising in respect of such property shall be limited to an amount not greaterthan the amounts collected or recovered by such party in respect of intangibletransition charges, whether or not actually deposited in the deposit accountsof such party, within the twelve (12) months preceding the commencement ofinsolvency proceedings, less the sum of such amounts paid to or for the accountof the holders of such security interest in intangible transition property, ortransferred to a segregated account held solely for their benefit, during suchtwelve (12) month period; and
(2) In the event that proceeds of intangible transitionproperty which have been recovered, collected, or otherwise received by acollection party shall have been transferred by such party from a commingledaccount that includes other funds to a segregated account identified as heldsolely for the benefit of the holders of transition bonds, which bonds aresecured by a security interest, perfected in accordance with the rules of thecommission established pursuant to § 39-1-56, in the intangible transitionproperty and all revenues and other proceeds arising in respect of suchproperty, the security interest of the holders of the transition bonds shallapply to any such segregated account, and shall have priority over any otherinterest or security interest therein, and over the lien of any judgment liencreditor or other lien creditor to which the security interest of thetransition bonds is senior, in accordance with § 39-1-55(vi) of thischapter.
§ 39-1-60 Commingling. – The validity of the interest of an assignee or secured party in intangibletransition property, and in all revenues or other proceeds arising in respectof such property whenever realized, as herein provided, and the relativepriority of the security interest of a secured party therein, when perfected inaccordance with the rules of the commission established pursuant to §39-1-56, shall not be defeated or adversely affected by the commingling of anysuch revenues or other proceeds with other funds, including those of theelectric distribution company or assignee, a successor to either such party,another party providing electric service as described in § 39-1-45(4) or aparty performing collection functions on behalf of any of the foregoing. All ofthe foregoing parties shall for purposes of this section be referred to as a"collection party". Nor shall such interest be defeated by the existence of anysecurity interest in a deposit account of any such collection party perfectedunder Article 9, commencing with § 9-101, of the Uniform Commercial Code(chapter 9 of title 6A), in which such revenues or other proceeds may have beendeposited; and, to the extent that moneys of an assignee of intangibletransition property are at any time held in a deposit or other account of acollection party, such moneys shall be considered to be held in trust for thebenefit of such assignee. For this purpose:
(1) An assignee of intangible transition property arisingunder a securitization order shall have a perfected interest, and the holdersof a perfected security interest in intangible transition property of theelectric distribution company or assignee arising under such order shall have aperfected security interest, in all cash and deposit accounts of any collectionparty in which amounts collected, recovered or received in respect ofintangible transition charges pursuant to such order have been deposited andcommingled with other funds, provided, that any such perfected securityinterest in deposit accounts of the electric distribution company or assigneeor a successor thereof, if such party is the debtor of the party holding theperfected security interest, shall be subject to any applicable right ofset-off and, in the event of insolvency of the electric distribution company orassignee or a successor thereof, the perfected security interest in intangibletransition property of such insolvent party and any revenues or other proceedsarising in respect of such property shall be limited to an amount not greaterthan the amounts collected or recovered by such party in respect of intangibletransition charges, whether or not actually deposited in the deposit accountsof such party, within the twelve (12) months preceding the commencement ofinsolvency proceedings, less the sum of such amounts paid to or for the accountof the holders of such security interest in intangible transition property, ortransferred to a segregated account held solely for their benefit, during suchtwelve (12) month period; and
(2) In the event that proceeds of intangible transitionproperty which have been recovered, collected, or otherwise received by acollection party shall have been transferred by such party from a commingledaccount that includes other funds to a segregated account identified as heldsolely for the benefit of the holders of transition bonds, which bonds aresecured by a security interest, perfected in accordance with the rules of thecommission established pursuant to § 39-1-56, in the intangible transitionproperty and all revenues and other proceeds arising in respect of suchproperty, the security interest of the holders of the transition bonds shallapply to any such segregated account, and shall have priority over any otherinterest or security interest therein, and over the lien of any judgment liencreditor or other lien creditor to which the security interest of thetransition bonds is senior, in accordance with § 39-1-55(vi) of thischapter.
§ 39-1-60 Commingling. – The validity of the interest of an assignee or secured party in intangibletransition property, and in all revenues or other proceeds arising in respectof such property whenever realized, as herein provided, and the relativepriority of the security interest of a secured party therein, when perfected inaccordance with the rules of the commission established pursuant to §39-1-56, shall not be defeated or adversely affected by the commingling of anysuch revenues or other proceeds with other funds, including those of theelectric distribution company or assignee, a successor to either such party,another party providing electric service as described in § 39-1-45(4) or aparty performing collection functions on behalf of any of the foregoing. All ofthe foregoing parties shall for purposes of this section be referred to as a"collection party". Nor shall such interest be defeated by the existence of anysecurity interest in a deposit account of any such collection party perfectedunder Article 9, commencing with § 9-101, of the Uniform Commercial Code(chapter 9 of title 6A), in which such revenues or other proceeds may have beendeposited; and, to the extent that moneys of an assignee of intangibletransition property are at any time held in a deposit or other account of acollection party, such moneys shall be considered to be held in trust for thebenefit of such assignee. For this purpose:
(1) An assignee of intangible transition property arisingunder a securitization order shall have a perfected interest, and the holdersof a perfected security interest in intangible transition property of theelectric distribution company or assignee arising under such order shall have aperfected security interest, in all cash and deposit accounts of any collectionparty in which amounts collected, recovered or received in respect ofintangible transition charges pursuant to such order have been deposited andcommingled with other funds, provided, that any such perfected securityinterest in deposit accounts of the electric distribution company or assigneeor a successor thereof, if such party is the debtor of the party holding theperfected security interest, shall be subject to any applicable right ofset-off and, in the event of insolvency of the electric distribution company orassignee or a successor thereof, the perfected security interest in intangibletransition property of such insolvent party and any revenues or other proceedsarising in respect of such property shall be limited to an amount not greaterthan the amounts collected or recovered by such party in respect of intangibletransition charges, whether or not actually deposited in the deposit accountsof such party, within the twelve (12) months preceding the commencement ofinsolvency proceedings, less the sum of such amounts paid to or for the accountof the holders of such security interest in intangible transition property, ortransferred to a segregated account held solely for their benefit, during suchtwelve (12) month period; and
(2) In the event that proceeds of intangible transitionproperty which have been recovered, collected, or otherwise received by acollection party shall have been transferred by such party from a commingledaccount that includes other funds to a segregated account identified as heldsolely for the benefit of the holders of transition bonds, which bonds aresecured by a security interest, perfected in accordance with the rules of thecommission established pursuant to § 39-1-56, in the intangible transitionproperty and all revenues and other proceeds arising in respect of suchproperty, the security interest of the holders of the transition bonds shallapply to any such segregated account, and shall have priority over any otherinterest or security interest therein, and over the lien of any judgment liencreditor or other lien creditor to which the security interest of thetransition bonds is senior, in accordance with § 39-1-55(vi) of thischapter.
