Section 7-535 – Bond Not Debt, Liability, or Pledge of State or Governmental Unit
(a) A rate stabilization bond issued under this part is not a debt, liability, or a pledge of the full faith and credit of the State or any other governmental unit. (b) The issuance of a rate stabilization bond under this part is not directly, indirectly, or contingently a moral or other obligation of the State or […]
Section 7-536 – Permissible Provisions of Order
A qualified rate order under this part that authorizes the issuance of rate stabilization bonds may: (1) state the rights and remedies of bondholders and any assignee; and (2) contain provisions to protect and enforce the rights and remedies of bondholders and any assignee.
Section 7-537 – Rate Stabilization Property
(a) The rights and interests of an electric company or successor under a qualified rate order, including the right to impose, collect, and receive qualified rate stabilization charges authorized in the order: (1) become rate stabilization property when they are first transferred to an assignee or are pledged in connection with the issuance of rate stabilization bonds; […]
Section 7-538 – Exemption From Taxes and Charges
A transaction that involves the transfer and ownership of rate stabilization property and the receipt of rate stabilization charges are exempt from State and local income, sales, franchise, gross receipts, and other taxes or similar charges.
Section 7-539 – Status of Agreement as 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 […]
Section 7-540 – Interest of Assignee or Pledgee Not Subject to Setoff, Counterclaim, Surcharge, or Defense; Order Effective Despite Bankruptcy
(a) The interest of an assignee or pledgee in rate stabilization property and in the revenues and collections arising from that property is not subject to setoff, counterclaim, surcharge, or defense by the electric company or any other person or in connection with the bankruptcy of the electric company or any other entity. (b) A qualified rate […]
Section 7-541 – Required Statements in Electric Bills
(a) (1) The electric bill of an electric company that has obtained a qualified rate order and issued rate stabilization bonds must: (i) explicitly reflect that a portion of the charges on the bill represents qualified rate stabilization charges approved in a qualified rate order issued to the electric company; and (ii) if the rate stabilization property has been […]
Section 7-542 – Liens or Assignments of Rate Stabilization Property
(a) (1) Rate stabilization property does not constitute an account or general intangible under § 9-102 of the Commercial Law Article. (2) The creation, granting, perfection, and enforcement of liens and security interests in rate stabilization property, including all proceeds of that property, are governed by this section and not by the Maryland Uniform Commercial Code. (b) (1) A valid […]
Section 7-543 – Successors to Perform and Satisfy Obligations
(a) This section applies to a person that is a successor to an electric company, whether through: (1) a reorganization, bankruptcy, or other insolvency proceeding; (2) a merger or acquisition, sale, or other business combination; or (3) a transfer by operation of law. (b) A successor to an electric company shall perform and satisfy all obligations of, and have the […]
Section 7-544 – Assignees or Financing Parties Not Considered Public Service Company or Electric Supplier
An assignee or financing party may not be considered to be a public service company or an electricity supplier solely by virtue of the transactions described in this part.