§ 45:1259 — State pledge

A. For purposes of this Section, the term "bondholder" means a person who holds a investment recovery bond, including in book entry form.
B.(1) The state and the Legislature of Louisiana each pledge to and agree with bondholders, the owners of the investment recovery property, and other financing parties that the state and the Legislature of Louisiana shall not do any of the following:
(a) Alter the provisions of this Part which authorize the commission to create an irrevocable contract right by the issuance of a financing order, to create investment recovery property, and to make the investment recovery charges imposed by a financing order irrevocable, binding, and non-bypassable charges.
(b) Take or permit any action that impairs or would impair the value of investment recovery property.
(c) Except as provided for in this Section and except for adjustments under any true-up mechanism established by the commission, reduce, alter, or impair investment recovery charges that are to be imposed, collected, and remitted for the benefit of the bondholders and other financing parties until any and all principal, interest, premium, financing costs, and other fees, expenses, or charges incurred, and any contracts to be performed, in connection with the related investment recovery bonds have been paid and performed in full.
(2) Nothing in this Subsection shall preclude limitation or alteration if and when full compensation is made by law for the full protection of the investment recovery charges imposed, charged, and collected pursuant to a financing order and full protection of the holders of investment recovery bonds and any assignee or financing party.
C. Any person or entity that issues investment recovery bonds may include the pledge specified in Subsection B of this Section and in R.S. 45:1253(C)(5) in the bonds and related documentation.

Legislative History

Acts 2010, No. 988, §2, eff. July 6, 2010.