56-90.1 - Sale of utility assets or undivided fractional interest therein; taxation.
§ 56-90.1. Sale of utility assets or undivided fractional interest therein;taxation.
If the Commission shall have granted a petition filed pursuant to § 56-90 inwhich a public utility has applied for authority to sell utility assets orassociated properties situated within the Commonwealth, or an undividedfractional interest therein, to (i) an association of one or more electriccooperatives or electric membership corporations that are wholesale customersof the electric public utility, (ii) an association of one or more cities orincorporated towns that are wholesale customers of the electric utility,(iii) any combination of such associations, or (iv) another public utilitythen, notwithstanding any other provisions of law:
(1) A waiver made by any such electric public utility, association ofcooperatives, cities or towns of any right it may have to compel partition,whether pursuant to the provisions of Article 9 (§ 8.01-81 et seq.) ofChapter 3 of Title 8.01, or otherwise, shall be effective and enforceableagainst (i) such public utility, association of cooperatives, cities ortowns, and their successors and assigns, and (ii) all creditors of suchpublic utility, association of cooperatives, cities and towns, theirsuccessors and assigns, who have notice of record of such waiver, so long asthe waiver shall be limited so as not to exceed ninety-nine years;
(2) No state recording tax shall be payable upon the admission to record ofany deed, deed of trust, mortgage, bill of sale, contract, agreement or otherwriting supplemental to any such instrument which conveys or reconveys suchutility assets or properties, or an undivided fractional interest therein orsecures any bonds or other obligations of such association of cooperatives,cities or towns or combination thereof; provided, however, that any localrecording taxes shall be payable as though the state recording taxes had beencollected;
(3) No state franchise tax or local license tax shall be payable on theproceeds of any such sale of utility assets or properties, or an undividedfractional interest therein; and
(4) Unless otherwise expressly agreed by the joint owners the joint ownershipof such utility assets or properties as approved by the Commission shall notconstitute a partnership or joint venture among the owners.
(1979, c. 238; 1980, c. 703.)