Status of agreement as sale

Checkout our iOS App for a better way to browser and research.

    (a)    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)    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.


Download our app to see the most-to-date content.