§ 40-41-115 — Security interests in CO-EI property

Colorado § 40-41-115

• Jurisdiction: Colorado
• Title 40: Utilities
• Art.: Colorado Energy Impact Bond Act

Text

(1) The creation, perfection,
and enforcement of any security interest in CO-EI property to secure the repayment
of the principal of and interest on CO-EI bonds, amounts payable under any
ancillary agreement, and other financing costs are governed by this section and not
by the Uniform Commercial Code, title 4, to the extent of any conflict.

(2) The description or indication of CO-EI property in a transfer or security
agreement and a financing statement is sufficient only if the description or
indication refers to this article 41 and the financing order creating the CO-EI
property.

(3) (a) A security interest in CO-EI property is created, valid, and binding as
soon as all of the following events have occurred:

(I) The financing order that describes the CO-EI property is issued;

(II) A security agreement is executed and delivered; and

(III) Value is received for the CO-EI bonds.

(b) Once a security interest in CO-EI property is created under subsection
(3)(a) of this section, the security interest attaches without any physical delivery of
collateral or any other act. The lien of the security interest is valid, binding, and
perfected against all parties having claims of any kind in tort, contract, or otherwise
against the person granting the security interest, regardless of whether such
parties have notice of the lien, upon the filing of a financing statement with the
secretary of state. The secretary of state shall maintain a financing statement filed
pursuant to this subsection (3)(b) in the same manner in which the secretary
maintains and in the same record-keeping system in which the secretary maintains
financing statements filed pursuant to article 9 of title 4. The filing of any financing
statement pursuant to this subsection (3)(b) is governed by article 9 of title 4
regarding the filing of financing statements.

(4) A security interest in CO-EI property is a continuously perfected security
interest and has priority over any other lien, created by operation of law or
otherwise, which may subsequently attach to the CO-EI property unless the holder
of the security interest has agreed in writing otherwise.

(5) The priority of a security interest in CO-EI property is not affected by the
commingling of CO-EI property or CO-EI revenue with other money. An assignee,
bondholder, or financing party has a perfected security interest in the amount of all
CO-EI property or CO-EI revenue that is pledged for the payment of CO-EI bonds
even if the CO-EI property or CO-EI revenue is deposited in a cash or deposit
account of the electric utility in which the CO-EI revenue is commingled with other
money, and any other security interest that applies to the other money does not
apply to the CO-EI revenue.

(6) Neither a subsequent order of the commission amending a financing
order as authorized by section 40-41-105 (4), nor application of an adjustment
mechanism as authorized by section 40-41-104 (2)(h), affects the validity,
perfection, or priority of a security interest in or transfer of CO-EI property.

Legislative History

Source: L. 2019: Entire article added, (SB 19-236), ch. 359, p. 3330, � 26, effective May 30.