§ 7-539. Status of agreement as sale

   (a) Significance of agreement of sale. -- An agreement by an electric company or assignee to transfer rate stabilization property that expressly states that the transfer is a sale or other absolute transfer signifies that:

   (1) the transaction is a true sale and is not a secured transaction; and

   (2) legal and equitable title has passed to the entity to which the rate stabilization property is transferred.

(b) Status as true sale. -- The status of the transfer as a true sale prevails regardless of any recourse the purchaser may have against the seller, or any other term of the parties' agreement, including:

   (1) the seller's retention of an equity interest in the rate stabilization property;

   (2) the fact that the electric company acts as the collector of qualified rate stabilization charges relating to the rate stabilization property; and

   (3) the treatment of the transfer as a financing for tax, financial reporting, or other purposes.

HISTORY: 2006 Sp. Sess., ch. 5, § 1.