(1)CO-EI property that is described in a
financing order constitutes an existing present property right or interest in an
existing present property right even though the imposition and collection of CO-EI
charges depends on the electric utility to which the financing order is issued
performing its servicing functions relating to the collection of CO-EI charges and on
future electricity consumption. The property right or interest exists regardless of
whether the revenues or proceeds arising from the CO-EI property have been billed,
have accrued, or have been collected and notwithstanding the fact that the value or
amount of the property right or interest is dependent on the future provision of
service to customers by the electric utility or a successor or assignee of the electric
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(1) CO-EI property that is described in a
financing order constitutes an existing present property right or interest in an
existing present property right even though the imposition and collection of CO-EI
charges depends on the electric utility to which the financing order is issued
performing its servicing functions relating to the collection of CO-EI charges and on
future electricity consumption. The property right or interest exists regardless of
whether the revenues or proceeds arising from the CO-EI property have been billed,
have accrued, or have been collected and notwithstanding the fact that the value or
amount of the property right or interest is dependent on the future provision of
service to customers by the electric utility or a successor or assignee of the electric
utility.
(2) CO-EI property described in a financing order exists until all CO-EI bonds
issued pursuant to the financing order are paid in full and all financing costs and
other costs of the CO-EI bonds have been recovered in full.
(3) All or any portion of CO-EI property described in a financing order issued
to an electric utility may be transferred, sold, conveyed, or assigned to a successor
or assignee that is wholly owned, directly or indirectly, by the electric utility and is
created for the limited purpose of acquiring, owning, or administering CO-EI
property or issuing CO-EI bonds as authorized by the financing order. All or any
portion of CO-EI property may be pledged to secure CO-EI bonds issued pursuant to
a financing order, amounts payable to financing parties and to counterparties under
any ancillary agreements, and other financing costs. Each transfer, sale,
conveyance, assignment, or pledge by an electric utility or an affiliate of an electric
utility is a transaction in the normal course of business for purposes of section 40-5-105 (1)(a).
(4) If an electric utility defaults on any required payment of charges arising
from CO-EI property described in a financing order, a court, upon application by an
interested party and without limiting any other remedies available to the applying
party, shall order the sequestration and payment of the revenue arising from the
CO-EI property to the financing parties. Any such financing order remains in full
force and effect notwithstanding any reorganization, bankruptcy, or other
insolvency proceedings with respect to the electric utility or its successors or
assignees.
(5) The interest of a transferee, purchaser, acquirer, assignee, or pledgee in
CO-EI property specified in a financing order issued to an electric utility, and in the
revenue and collections arising from that property, is not subject to setoff,
counterclaim, surcharge, or defense by the electric utility or any other person or in
connection with the reorganization, bankruptcy, or other insolvency of the electric
utility or any other entity.
(6) A successor to an electric utility, whether pursuant to any reorganization,
bankruptcy, or other insolvency proceeding or whether pursuant to any merger or
acquisition, sale, other business combination, or transfer by operation of law, as a
result of electric utility restructuring or otherwise, shall perform and satisfy all
obligations of, and has the same duties and rights under a financing order as, the
electric utility to which the financing order applies and shall perform the duties and
exercise the rights in the same manner and to the same extent as the electric
utility, including collecting and paying to any person entitled to receive them the
revenues, collections, payments, or proceeds of CO-EI property described in the
financing order.