§ 39-1-55 - Attachment and perfection of security interest.
SECTION 39-1-55
§ 39-1-55 Attachment and perfection ofsecurity interest. – A valid and enforceable security interest in intangible transition propertyshall be created by the terms of the applicable securitization order, or by theexecution and delivery of a security agreement between the electricdistribution company, or assignee, and a financing party, and shall attach, andshall be perfected only by means of a separate filing with the commission,under the rules as the commission establishes pursuant to § 39-1-56. Forthis purpose, the commission shall provide that:
(i) If transition bonds are issued to finance any qualifiedtransition expenditures, as specified in the applicable securitization order,the security interest securing such bonds shall attach automatically to theintangible transition property relating to such expenditures from the time thatvalue is given for the issuance of the bonds;
(ii) Such security interest shall thereupon and thereafter bedeemed a valid and enforceable security interest in the intangible transitionproperty securing such transition bonds, and, subject to compliance with suchfurther conditions, if any, as may be stated in the securitization order, shallthereupon be deemed a continuously perfected security interest in such propertyand in all revenues and other proceeds arising in respect of such property,whenever the same may accrue or be identified, if, before the date of issuancespecified in subparagraph (i) of this section or within not more than ten (10)days thereafter, a filing shall have been made by or on behalf of the financingparty to protect that security interest in accordance with the proceduresprescribed by the commission pursuant to this section and other provisions ofthis chapter;
(iii) Any filing, in accordance with the rules of thecommission established pursuant to § 39-1-56, in respect of a securityinterest securing transition bonds issued pursuant to a securitization order,shall have priority over any filing in respect of a security interest notsecuring such bonds, whenever effected;
(iv) Conflicting security interests securing transition bondsissued pursuant to a securitization order shall rank according to priority intime of perfection;
(v) The relative priority of a security interest inintangible transition property, when perfected in accordance with the rules ofthe commission established pursuant to § 39-1-56, shall not be adverselyaffected by subsequent changes to the securitization order or to the intangibletransition charges to be paid by any customer pursuant thereto, as contemplatedin §§ 39-1-45 and 39-1-46; and
(vi) A security interest in intangible transition propertywhen perfected in accordance with the rules of the commission establishedpursuant to § 39-1-56, shall have priority over the claim of any judgmentlien creditor or other lien creditor of the debtor, whose lien becomesperfected or attached after perfection, of the security interest.