2022 Oklahoma Statutes
Title 74. State Government
§74-9075. Rights and interests to revenues – Securitization property right.
A. The rights and interests to receive revenues collected by a regulated utility through the irrevocable and nonbypassable mechanism created pursuant to a financing order shall become a securitization property right at the time the ratepayer-backed bond is issued pursuant to a financing order.
B. The securitization property right under a financing order shall constitute a present property right for purposes of contracts concerning the sale or pledge of property, even though the imposition and collection of the relevant charges depend on future acts of the regulated utility, the Oklahoma Corporation Commission and acts of others. The financing order shall remain in effect, and the property interest shall continue to exist for the same period as the maturity, with reasonable true-up and reconciliation periods set out in the financing order.
C. All revenues and collections received through the irrevocable and nonbypassable mechanism created pursuant to a financing order shall be the further property and right of the owner of the securitization property.
D. The rights of the securitization property owner are not subject to setoff, counterclaim, surcharge or defense by the regulated utility or any other person, creditor or otherwise, in any bankruptcy or debt collection proceeding of the regulated utility or any other entity. A financing order shall remain in effect and unabated notwithstanding the bankruptcy or sale of the regulated utility, its successors or assignees.
E. A valid and enforceable lien and security interest in securitization property may be created by a financing order and the execution and delivery of a security agreement with the Oklahoma Development Finance Authority in connection with the issuance of ratepayer-backed bonds. The lien and security interest shall attach automatically from the time the value is received by the Authority for the bonds and transferred to the regulated utility in exchange for securitization property and, on perfection through the filing of notice with the Oklahoma Secretary of State, shall be a continuously perfected lien and security interest in the securitization property and all proceeds from the property shall have priority in the order of filing and take precedence over any subsequent judicial or other lien creditor.
F. Any sale, assignment or transfer of the securitization property to the Authority that expressly states that a transfer is a sale or other absolute transfer signifies that the transaction is a true sale and is not a secured transaction and that title, legal and equitable, has passed to the Authority.
G. Transfer of an interest in securitization property to an assignee shall be perfected against all third parties including subsequent judicial or other lien creditors when the financing order becomes effective, transfer documents have been delivered to the assignee and a notice of that transfer has been filed with the Oklahoma Secretary of State.
H. The priority of a lien and security interest perfected under this section is not impaired by any later modification of the financing order or by the commingling of funds with other revenues paid by customers to the regulated utility, by utilities to the Authority or otherwise paid. If securitization property has been transferred to an assignee, any revenues related to that property shall be held in trust for the assignee.
I. If a default or termination occurs under the ratepayer-backed bonds, holders of the bonds or their representatives may foreclose on or otherwise enforce their lien and security interest in any securitization property, and the Commission may require any revenues received under the irrevocable and nonbypassable mechanism created by a financing order be paid to a new holder of the securitization property.
Added by Laws 2021, c. 204, § 6, emerg. eff. April 23, 2021.
