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§ 7-539. Sale of rate stabilization property

West's Annotated Code of MarylandPublic Utilities

West's Annotated Code of Maryland
Public Utilities (Refs & Annos)
Division I. Public Services and Utilities [Titles 1-15] (Refs & Annos)
Title 7. Gas, Electric, and Water Companies (Refs & Annos)
Subtitle 5. Electric Industry Restructuring (Refs & Annos)
Part III. Rate Stabilization (Refs & Annos)
MD Code, Public Utilities, § 7-539
Formerly cited as MD PUBLIC UTIL COMP § 7-539
§ 7-539. Sale of rate stabilization property
Express statement in agreement that transfer is a sale
(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.
Recourse purchaser may have against seller
(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.

Credits

Added by Acts 2006, 1st Sp. Sess., c. 5, § 1, eff. June 23, 2006.
MD Code, Public Utilities, § 7-539, MD PUBLIC UTIL § 7-539
Current through all legislation from the 2022 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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