(1) The interest of an assignee or pledgee in securitization property and in the revenues and collections arising from that property are not subject to setoff, counterclaim, surcharge, or defense by the electric utility or any other person or in connection with the bankruptcy of the electric utility or any other entity. A financing order shall remain in effect and unabated notwithstanding the bankruptcy of the electric utility, its successors, or assignees.
  (2) A financing order shall include terms ensuring that the imposition and collection of securitization charges authorized in the order are a nonbypassable charge.

Terms Used In Michigan Laws 460.10k

  • Assignee: means an individual, corporation, or other legally recognized entity to which an interest in securitization property is transferred. See Michigan Laws 460.10h
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Commission: means the Michigan public service commission in the department of consumer and industry services. See Michigan Laws 460.10h
  • Counterclaim: A claim that a defendant makes against a plaintiff.
  • Electric utility: means that term as defined in section 2 of the electric transmission line certification act, 1995 PA 30, MCL 460. See Michigan Laws 460.10h
  • Financing order: means an order of the commission approving the issuance of securitization bonds and the creation of securitization charges and any corresponding utility rate reductions. See Michigan Laws 460.10h
  • Nonbypassable charge: means a charge in a financing order payable by a customer to an electric utility or its assignees or successors regardless of the identity of the customer's electric generation supplier. See Michigan Laws 460.10h
  • person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
  • Securitization bonds: means bonds, debentures, notes, certificates of participation, certificates of a beneficial interest, certificates of ownership, or other evidences of indebtedness that are issued by an electric utility, its successors, or an assignee under a financing order, that have a term of not more than 15 years, and that are secured by or payable from securitization property. See Michigan Laws 460.10h
  • Securitization charges: means nonbypassable amounts to be charged for the use or availability of electric services, approved by the commission under a financing order to fully recover qualified costs, that shall be collected by an electric utility, its successors, an assignee, or other collection agents as provided for in the financing order. See Michigan Laws 460.10h
  • Securitization property: means the property described in section 10j. See Michigan Laws 460.10h
  (3) A financing order shall include a mechanism requiring that securitization charges be reviewed and adjusted by the commission at least annually, within 45 days of the anniversary date of the issuance of the securitization bonds, to correct any overcollections or undercollections of the preceding 12 months and to ensure the expected recovery of amounts sufficient to timely provide all payments of debt service and other required amounts and charges in connection with the securitization bonds.
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