(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
Division I - Public Services and Utilities
Title 7 - Gas, Electric, and Water Companies
Subtitle 5 - Electric Industry Restructuring
Section 7-522 - Filing Rate Stabilization Plan
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 7-541 - Required Statements in Electric Bills
Section 7-542 - Liens or Assignments of Rate Stabilization Property
Section 7-543 - Successors to Perform and Satisfy Obligations