2005 Rhode Island Code - § 39-1-55 — Attachment and perfection of security interest.

    A valid and enforceable security interest in intangible transition property shall be created by the terms of the applicable securitization order, or by the execution and delivery of a security agreement between the electric distribution company, or assignee, and a financing party, and shall attach, and shall be perfected only by means of a separate filing with the commission, under such rules as the commission establishes pursuant to § 39-1-56. For this purpose, the commission shall provide that:

   (i) If transition bonds are issued to finance any qualified transition expenditures, as specified in the applicable securitization order, the security interest securing such bonds shall attach automatically to the intangible transition property relating to such expenditures from the time that value is given for the issuance of the bonds;

   (ii) Such security interest shall thereupon and thereafter be deemed a valid and enforceable security interest in the intangible transition property securing such transition bonds, and, subject to compliance with such further conditions, if any, as may be stated in the securitization order, shall thereupon be deemed a continuously perfected security interest in such property and 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 issuance specified 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 financing party to protect that security interest in accordance with the procedures prescribed by the commission pursuant to this section and other provisions of this chapter;

   (iii) Any filing, in accordance with the rules of the commission established pursuant to § 39-1-56, in respect of a security interest securing transition bonds issued pursuant to a securitization order, shall have priority over any filing in respect of a security interest not securing such bonds, whenever effected;

   (iv) Conflicting security interests securing transition bonds issued pursuant to a securitization order shall rank according to priority in time of perfection;

   (v) The relative priority of a security interest in intangible transition property, when perfected in accordance with the rules of the commission established pursuant to § 39-1-56, shall not be adversely affected by subsequent changes to the securitization order or to the intangible transition charges to be paid by any customer pursuant thereto, as contemplated in §§ 39-1-45 and 39-1-46; and

   (vi) A security interest in intangible transition property when perfected in accordance with the rules of the commission established pursuant to § 39-1-56, shall have priority over the claim of any judgment lien creditor or other lien creditor of the debtor, whose lien becomes perfected or attached after perfection, of the security interest.