(1) (a) A sale, assignment, or transfer of CO-EI property is an absolute transfer and true sale of, and not a pledge of or secured transaction relating to, the seller's right, title, and interest in, to, and under the CO-EI property if the documents governing the transaction expressly state that the transaction is a sale or other absolute transfer. A transfer of an interest in CO-EI property may be created only when all of the following have occurred:
The financing order creating and describing the CO-EI property has become
effective;
The documents evidencing the transfer of the CO-EI property have been executedand delivered to the assignee; and (III) Value is received.
(b) Upon the filing of a financing statement with the secretary of state, a transfer of an interest in CO-EI property is perfected against all third persons, including any judicial lien or other lien creditors or any claims of the seller or creditors of the seller, other than creditors holding a prior security interest, ownership interest, or assignment in the CO-EI property previously perfected in accordance with this subsection (1) or section 40-41-115. The secretary of state shall maintain a financing statement filed pursuant to this subsection (1)(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 (1)(b) is governed by article 9 of title 4 regarding the filing of financing statements.
(2) The characterization of a sale, assignment, or transfer as an absolute transfer and true sale and the corresponding characterization of the property interest of the assignee is not affected or impaired by the existence or occurrence of any of the following: (a) Commingling of CO-EI revenue with other money; (b) The retention by the seller of:
A partial or residual interest, including an equity interest, in the CO-EI property,whether direct or indirect, or whether subordinate or otherwise; or
The right to recover costs associated with taxes, franchise fees, or license fees imposed on the collection of CO-EI revenue;
Any recourse that the purchaser may have against the seller;
Any indemnification rights, obligations, or repurchase rights made or provided by theseller;
An obligation of the seller to collect CO-EI revenues on behalf of an assignee;
The treatment of the sale, assignment, or transfer for tax, financial reporting, or otherpurposes;
Any subsequent financing order amending a financing order as authorized by section40-41-105 (4); or
Any application of an adjustment mechanism as authorized by section 40-41-104
(2)(h).
Source: Entire article added, (SB 19-236), ch. 359, p. 3331, § 26, effective May 30.