This text of Indiana § 8-1-40.5-15 (Lien on and security interest in securitization property) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)A valid and enforceable lien and security
interest in securitization property may be created only by a financing
order and the execution and delivery of a security agreement with a
financing entity in connection with the issuance of securitization bonds.
(b)The lien and security interest attach automatically from the time
that value is received for the securitization bonds, and:
(1)constitute a continuously perfected lien and security interest
in the securitization property and all proceeds of the property,
whether or not accrued;
(2)have priority in the order of their filing, if a financing
statement is filed with respect to the security interest in
accordance with IC 26-1; and
(3)take precedence over any subsequent:
(B)other creditor's lien.
In addition to
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(a) A valid and enforceable lien and security
interest in securitization property may be created only by a financing
order and the execution and delivery of a security agreement with a
financing entity in connection with the issuance of securitization bonds.
(b) The lien and security interest attach automatically from the time
that value is received for the securitization bonds, and:
(1) constitute a continuously perfected lien and security interest
in the securitization property and all proceeds of the property,
whether or not accrued;
(2) have priority in the order of their filing, if a financing
statement is filed with respect to the security interest in
accordance with IC 26-1; and
(3) take precedence over any subsequent:
(A) judicial lien; or
(B) other creditor's lien.
In addition to the rights and remedies provided by this chapter, all
rights and remedies provided by IC 26-1 with respect to a security
interest apply with respect to securitization property.
(c) Transfer of an interest in securitization property to an assignee
is perfected against all third parties, including subsequent judicial or
other lien creditors, if a financing statement is filed with respect to the
transfer in accordance with IC 26-1.
(d) The priority of a lien and security interest under this section is
not impaired by the following:
(1) A later modification of the financing order under which the
securitization property arises.
(2) The commingling of other funds with funds arising from the
collection of securitization charges. Any other security interest
that may apply to funds arising from the collection of
securitization charges terminates when the funds are transferred
to a segregated account for the benefit of the assignee or a
financing entity. If securitization property has been transferred to
an assignee, any proceeds from that property shall be held in trust
for the assignee.
(e) If the electric utility or any of its successors default in paying
revenues arising with respect to the securitization property, the
commission or a court having jurisdiction shall, upon application of the
financing party, and without limiting any other remedies available to
the financing party, order the:
(1) sequestration; and
(2) payment to the financing party;
of revenues arising with respect to the securitization property. An order
under this subsection remains in full force and effect notwithstanding
any bankruptcy, reorganization, or other insolvency proceedings with
respect to the debtor or any pledger or transferor of the securitization
property.
(f) Securitization property constitutes an account as defined in IC 26-1-9.1-102.
(g) For purposes of this chapter and IC 26-1, securitization property
is considered to exist regardless of whether:
(1) the revenue or proceeds with respect to the property have
accrued; or
(2) the value of the property right is dependent on the customers
of an electric utility receiving service.
(h) Changes in a financing order or in customers' securitization
charges do not affect the validity, perfection, or priority of the security
interest in the related securitization property.
(i) The description of securitization property in a security
agreement, in another agreement, or in a financing statement is
sufficient if it refers to this chapter and the financing order under which
the securitization property arises.
(j) This chapter controls in any conflict between this chapter and
any other Indiana law regarding:
(1) the attachment and perfection;
(2) the effect of perfection; and
(3) the priority;
of any security interest in securitization property.