Ohio § 4928.2312

§ 4928.2312.

(A) Except as provided in division (C) of this section, the creation, perfection, and

enforcement of any security interest in phase-in-recovery property under a final financing

order to secure the repayment of the principal of and interest on phase-in-recovery

bonds, amounts payable under any ancillary agreement, and other financing costs are

governed by this section and not Chapters 1301. to 1309. of the Revised Code. (B) The description of the phase-in-recovery property in a transfer or security agreement

and a financing statement is sufficient only if the description refers to this section

and the final financing order creating the property.  This section applies to all purported transfers of, and all purported grants of,

liens on or security interests in that property, regardless of whether the related

transfer or security agreement was entered into, or the related financing statement

was filed, before or after the effective date of this section. (C)(1) A security interest in phase-in-recovery property under a final financing order is

created, valid, and binding at the latest of the date that the security agreement

is executed and delivered or the date that value is received for the phase-in-recovery

bonds. (2)(a) The security interest shall attach without any physical delivery of collateral or

other act, and, upon the filing of the financing statement with the office of the

secretary of state, the lien of the security interest shall be valid, binding, and

perfected against all parties having claims of any kind in tort, contract, or otherwise

against the person granting the security interest, regardless of whether the parties

have notice of the lien.  Also upon this filing, a transfer of an interest in the phase-in-recovery property

shall be perfected against all parties having claims of any kind, including any judicial

lien or other lien creditors or any claims of the seller or creditors of the seller,

other than creditors holding a prior security interest, ownership interest, or assignment

in the property previously perfected in accordance with this division. (b) The secretary of state shall maintain any financing statement filed under division

(C)(2) of this section in the same manner that the secretary maintains financing statements

filed by transmitting utilities under division (B) of section 1309.501 of the Revised Code .  The filing of any financing statement under division (C)(2) of this section shall

be governed by the provisions regarding the filing of financing statements in Chapter

1309. of the Revised Code. (D)(1) A security interest in phase-in-recovery property under a final financing order is

a continuously perfected security interest and has priority over any other lien, created

by operation of law or otherwise, that may subsequently attach to that property or

those rights or interests unless the holder of any such lien has agreed in writing

otherwise. (2) The priority of a security interest in phase-in-recovery property is not affected

by the commingling of phase-in-recovery revenues with other amounts.  Any pledgee or secured party shall have a perfected security interest in the amount

of all phase-in-recovery revenues that are deposited in any cash or deposit account

of the electric distribution utility in which phase-in-recovery revenues have been

commingled with other funds.  Any other security interest that may apply to those funds shall be terminated when

the funds are transferred to a segregated account for an assignee or a financing party. (3) No application of the adjustment mechanism as described in section 4928.238 of the Revised Code shall affect the validity, perfection, or priority of a security interest in or the

transfer of phase-in-recovery property under the final financing order.