Maryland Statutes
Part III - Rate Stabilization
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 property is transferred.
    (b)    The status of the transfer as a true sale prevails regardless of any recourse the purchaser may have against the seller, or any other term of the parties’ agreement, including:
        (1)    the seller’s retention of an equity interest in the rate stabilization property;
        (2)    the fact that the electric company acts as the collector of qualified rate stabilization charges relating to the rate stabilization property; and
        (3)    the treatment of the transfer as a financing for tax, financial reporting, or other purposes.

Structure Maryland Statutes

Maryland Statutes

Public Utilities

Division I - Public Services and Utilities

Title 7 - Gas, Electric, and Water Companies

Subtitle 5 - Electric Industry Restructuring

Part III - Rate Stabilization

Section 7-520 - Definitions

Section 7-521 - Applicability

Section 7-522 - Filing Rate Stabilization Plan

Section 7-523 - Deferrals

Section 7-524 - Tariffs Implementing Rate Stabilization Plan; Application for Qualified Rate Order

Section 7-525 - Recovery of Actual Cost of Deferred Expenses

Section 7-526 - Application for Qualified Rate Order

Section 7-527 - Order to Include Costs and Recovery Time Period

Section 7-528 - Effectiveness and Irrevocability; Review

Section 7-529 - Time Limit for Commission's Decision

Section 7-530 - Qualified Rate Stabilization Charges -- Imposition and Collection Are Nonbypassable

Section 7-531 - Commission to Establish Procedures and Time Frames for Review

Section 7-532 - Termination, Expiration, and Extension of Orders

Section 7-533 - Retiring and Refunding Bonds

Section 7-534 - Modified or Additional Qualified Rate Orders

Section 7-535 - Bond Not Debt, Liability, or Pledge of State or Governmental Unit

Section 7-536 - Permissible Provisions of Order

Section 7-537 - Rate Stabilization Property

Section 7-538 - Exemption From Taxes and Charges

Section 7-539 - Status of Agreement as Sale

Section 7-540 - Interest of Assignee or Pledgee Not Subject to Setoff, Counterclaim, Surcharge, or Defense; Order Effective Despite Bankruptcy

Section 7-541 - Required Statements in Electric Bills

Section 7-542 - Liens or Assignments of Rate Stabilization Property

Section 7-543 - Successors to Perform and Satisfy Obligations

Section 7-544 - Assignees or Financing Parties Not Considered Public Service Company or Electric Supplier