(a) This subchapter shall be known and may be cited as the “Arkansas Electric Utility Storm Recovery Securitization Act”. (b) The purpose of this subchapter is to enable Arkansas electric utilities, if authorized by a financing order issued by the Arkansas Public Service Commission, to use securitization financing for storm recovery costs, which may lower […]
As used in this subchapter: (1) “Ancillary agreement” means any bond, insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other financial arrangement entered into in connection with the issuance of storm recovery bonds; (2) “Assignee” means any legal or commercial entity, including but not […]
(a) An electric utility may petition the Arkansas Public Service Commission for a financing order. For each petition, the electric utility shall: (1) Describe the storm recovery activities that the electric utility has undertaken or proposes to undertake and describe the reasons for undertaking the activities; (2) Set forth the known storm recovery costs and […]
(a) If the Arkansas Public Service Commission issues a financing order to an electric utility pursuant to this section, the commission may not, in exercising its powers and carrying out its duties regarding any matter within its authority pursuant to this chapter, consider the storm recovery bonds issued pursuant to the financing order to be […]
(a) All storm recovery property that is specified in a financing order shall constitute an existing, present intangible property right or interest therein, notwithstanding that the imposition and collection of storm recovery charges depend on the electric utility to which the financing order is issued performing its servicing functions relating to the collection of storm […]
The sale, assignment, or transfer of storm recovery property is governed by this section. All of the following apply to a sale, assignment, or transfer under this section: (1) The sale, conveyance, assignment, or other transfer of storm recovery property by an electric utility to an assignee that the parties have in the governing documentation […]
(a) The Uniform Commercial Code — Secured Transactions, § 4-9-101 et seq., does not apply to storm recovery property or any right, title, or interest of a utility, assignee, or financing party therein except to the extent specified in this subchapter. In addition, such right, title, or interest pertaining to a financing order including, but […]
(a) The law governing the validity, enforceability, attachment, perfection, priority, exercise of remedies, and venue with respect to the sale, assignment, or transfer of an interest or right or the creation of a security interest in any storm recovery property shall be exclusively the laws of this state, without applying this state’s law on conflicts […]
(a) Storm recovery bonds are not a debt or a general obligation of the state or any of its political subdivisions, agencies, or instrumentalities and are not a charge on their full faith and credit. An issue of storm recovery bonds does not, directly or indirectly or contingently, obligate the state or any agency, political […]
The Arkansas state income tax treatment of the following events will conform to the federal income tax treatment of such events: (1) The electric utility’s receipt of a financing order that creates storm recovery property for the benefit of the electric utility; (2) The electric utility’s receipt of cash or other valuable consideration in exchange […]
(a) For purposes of this section, the term “bondholder” means a person who holds, owns, or is the beneficial holder or owner of a storm recovery bond. (b) (1) The state and its agencies, including the Arkansas Public Service Commission, pledge to and agree with bondholders, the owners of the storm recovery property, and other […]
An assignee or financing party shall not be considered an electric utility or person providing electric service by virtue of engaging in the transactions described in this subchapter.
