Oklahoma § 74-9075 - Rights and interests to revenues – Securitization

§ 74-9075. Rights and interests to revenues – Securitization

property right.

Oklahoma Statutes - Title 74. State Government

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

Oklahoma Statutes - Title 74. State Government

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 ratepayerbacked 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.