(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.
The description or indication of CO-EI property in a transfer or security agreementand 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.
(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.
A security interest in CO-EI property is a continuously perfected security interest andhas 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.
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.
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.
Source: L. 2019: Entire article added, (SB 19-236), ch. 359, p. 3330, § 26, effective May 30.