Oregon Revised Statutes Chapter 757 § 757.463 — Security interest as collateral in rate recovery assets; requirements for

Security interest as collateral in rate recovery assets; requirements for attachment and perfection; transfers; enforcement rights and remedies. (1)(a) A public utility, finance subsidiary or assignee may grant a security interest in rate recovery assets as collateral for rate recovery bonds. A security interest in rate recovery assets is valid and enforceable against the debtor and third parties, subject only to the rights of any third parties holding security interests in the rate recovery assets attached and perfected in the manner described under this subsection. (b) A security interest in rate recovery assets attaches if: (A) The secured party, or a financing party that the secured party represents, has given value; and (B) The debtor has signed a security agreement granting the secured party a security interest in the rate recovery assets. (c) A valid and enforceable security interest in rate recovery assets is perfected if: (A) The security interest has attached in the manner described in paragraph (b) of this subsection; and (B) A financing statement has been filed in accordance with the requirements of ORS chapter 79A that identifies the debtor as “debtor,” the secured party as “secured party” and the rate recovery assets granted as security as the “collateral,” and contains a description in the financing statement that refers to the Public Utility Commission’s financing order creating the rate recovery assets. The financing statement shall be deemed sufficient under ORS chapter 79A and all other relevant law for identifying the rate recovery assets granted as security. (d) A perfected security interest in rate recovery assets is a continuously perfected security interest, whether or not the related revenues have accrued or the related rate recovery charges have been charged, billed or collected. Rate recovery assets constitute a presently existing, fully vested property right for the purposes of contracts securing the rate recovery bonds, whether or not the related revenues have accrued or the related rate recovery charges have been charged, billed or collected. Multiple security interests in the same rate recovery assets shall rank according to priority in time of perfection. (e) Subject to the terms of the security agreement covering the rate recovery assets, the relative priority of a security interest created or perfected under this section is not adversely affected by: (A) Any later modification of the financing order or rate recovery assets; or (B) The commingling of proceeds of rate recovery assets with other moneys. (2)(a) A transfer of rate recovery assets to an assignee is perfected against all third parties if a notice of the transfer, by means of a financial statement: (A) Is filed in accordance with the requirements of ORS chapter 79A; (B) Specifies that the notice of transfer is filed to provide notice of the transfer of the rate recovery assets from the transferor to the assignee; (C) Identifies the transferor as “debtor,” the assignee as “secured party” and the rate recovery asset as “collateral”; and (D) Contains a description that refers to the commission’s financing order that created the rate recovery assets. (b) A notice of transfer that is filed in accordance with the requirements under paragraph (a) of this subsection shall be deemed sufficient under ORS chapter 79A and all other relevant laws for identifying the rate recovery assets and for providing notice that the rate recovery assets have been transferred to the assignee. (c) A transfer is perfected against third parties on the date a notice of transfer is filed. (d) A transfer of rate recovery assets to a financing subsidiary that is perfected under this subsection is free and clear of all claims, security interests, liens and encumbrances of the transferring public utility, except for any prior security interest perfected under subsection (1) of this section. (e) The priority of a transfer that is perfected under this subsection is not adversely affected by: (A) Any later modification of the financing order or rate recovery assets; or (B) The commingling of proceeds of rate recovery assets. (3)(a) When proceeds of rate recovery assets are transferred to a segregated account for an assignee or secured party, any lien or security interest that may apply to those proceeds, other than a security interest perfected under subsection (1) of this section, is automatically terminated, without the need for further notice, act or evidence. (b) Proceeds from rate recovery assets shall be held in trust for an assignee or secured party until the proceeds have been transferred to the assignee or secured party. (c) Any adjustment in rate recovery charges does not affect the validity, perfection or priority of a security interest in or the transfer of rate recovery assets. (4)(a) The rights and remedies of a secured party in enforcing a secured interest in rate recover