Montana Code 69-3-1621. Security interests in Montana energy impact assistance property
69-3-1621. Security interests in Montana energy impact assistance property. (1) The creation, perfection, and enforcement of any security interest in Montana energy impact assistance property to secure the repayment of the principal of and interest on Montana energy impact assistance bonds, amounts payable under any ancillary agreement, and other financing costs are governed by this section.
Terms Used In Montana Code 69-3-1621
- Ancillary agreement: means any bond, insurance policy, letter of credit, reserve account, surety bond, interest rate lock or swap arrangement, liquidity or credit support arrangement, or other financial arrangement entered into in connection with Montana energy impact assistance bonds that is designed to promote the credit quality and marketability of Montana energy impact assistance bonds or to mitigate the risk of an increase in interest rates. See Montana Code 69-3-1603
- Assignee: means any person to which an interest in Montana energy impact assistance property is sold, assigned, transferred, or conveyed, other than as security, and any successor to or subsequent assignee of a person. See Montana Code 69-3-1603
- Bondholder: means any holder or owner of Montana energy impact assistance bonds. See Montana Code 69-3-1603
- commission: means the public service commission provided for in 2-15-2602. See Montana Code 69-1-101
- Contract: A legal written agreement that becomes binding when signed.
- Electric utility: means any electric utility regulated by the commission pursuant to Title 69, chapter 3, including the electric utility's successors or assignees. See Montana Code 69-3-1603
- Financing costs: means , if approved by the commission in a financing order, costs to issue, service, repay, or refinance Montana energy impact assistance bonds, whether incurred or paid on issuance of the Montana energy impact assistance bonds or over the life of the bonds. See Montana Code 69-3-1603
- Financing order: means an order issued by the commission in accordance with 69-3-1606 that grants, in whole or in part, an application filed pursuant to 69-3-1605 authorizing the issuance of Montana energy impact assistance bonds in one or more series, the imposition, charging, and collection of Montana energy impact assistance charges, and the creation of Montana energy impact assistance property. See Montana Code 69-3-1603
- Financing party: means holders of Montana energy impact assistance bonds and trustees, collateral agents, any party under an ancillary agreement, or any other person acting for the benefit of Montana energy impact assistance bondholders. See Montana Code 69-3-1603
- Lien: A claim against real or personal property in satisfaction of a debt.
- Montana energy impact assistance bonds: means low-cost corporate securities, including but not limited to senior secured bonds, debentures, notes, certificates of participation, certificates of beneficial interest, certificates of ownership, or other evidences of indebtedness or ownership that have a scheduled maturity of no longer than 30 years and a final legal maturity date that is not later than 32 years from the issue date, that are rated AA or Aa2 or better by a major independent credit rating agency at the time of issuance, and that are issued by an electric utility or an assignee pursuant to a financing order. See Montana Code 69-3-1603
- Montana energy impact assistance property: means :
(a)all rights and interests of an electric utility or successor or assignee of an electric utility under a financing order for the right to impose, bill, collect, and receive Montana energy impact assistance charges as it is authorized to do solely under the financing order and to obtain periodic adjustments to the Montana energy impact assistance charges as provided in the financing order; and
(b)all revenue, collections, claims, rights to payments, payments, money, or proceeds arising from the rights and interests specified in subsection (14)(a), regardless of whether the revenue, collections, claims, rights to payment, payments, money, or proceeds are imposed, billed, received, collected, or maintained together with or commingled with other revenue, collections, rights to payment, payments, money, or proceeds. See Montana Code 69-3-1603
- Montana energy impact assistance revenue: means revenue, receipts, collections, payments, money, claims, or other proceeds arising from Montana energy impact assistance property. See Montana Code 69-3-1603
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Property: means real and personal property. See Montana Code 1-1-205
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
- Writing: includes printing. See Montana Code 1-1-203
(2)The following apply to a security interest:
(a)the description or indication of Montana energy impact assistance property in a transfer or security agreement and a financing statement is sufficient only if the description or indication refers to this part and the financing order creating the Montana energy impact assistance property;
(b)a security interest in Montana energy impact assistance property is a continuously perfected security interest and has priority over any other lien, created by operation of law or otherwise, which may subsequently attach to the Montana energy impact assistance property unless the holder of the security interest has agreed in writing otherwise in accordance with Title 30, chapter 9A, part 3;
(c)the priority of a security interest in Montana energy impact assistance property is not affected by the commingling of Montana energy impact assistance property or Montana energy impact assistance revenue with other money. An assignee, bondholder, or financing party has a perfected security interest in the amount of all Montana energy impact assistance property or Montana energy impact assistance revenue that is pledged for the payment of Montana energy impact assistance bonds even if the Montana energy impact assistance property or Montana energy impact assistance revenue is deposited in a cash or deposit account of the electric utility in which the Montana energy impact assistance revenue is commingled with other money, and any other security interest that applies to the other money does not apply to the Montana energy impact assistance revenue.
(d)Neither a subsequent order of the commission amending a financing order as authorized by 69-3-1607, nor application of an adjustment mechanism as authorized by 69-3-1606(2)(a)(vi), affects the validity, perfection, or priority of a security interest in or transfer of Montana energy impact assistance property.
(2)(a) A security interest in Montana energy impact assistance property is created, valid, and binding as soon as:
(i)the financing order that describes the Montana energy impact assistance property is issued;
(ii)a security agreement is executed and delivered; and
(iii)value is received for the Montana energy impact assistance bonds.
(b)Once a security interest in Montana energy impact assistance property is created, the security interest attaches without any physical delivery of collateral or any other act. The lien of the security interest is valid, binding, and perfected under Title 30, chapter 9A, part 3, 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, upon the filing of a financing statement with the secretary of state.
(3)A valid and enforceable security interest in Montana energy impact assistance property is perfected only when it has attached and when a financing order has been filed with the secretary of state in accordance with procedures that the secretary of state may establish. The financing order must name the pledgor of the Montana energy impact assistance property as debtor and identify the property.