65.114 Investment in securitized bonds -- Limitations -- Determination of
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/ky/65-114A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
connection by commission -- Limitation on adverse governmental actions
affecting rights in securitized property.
(1)All of the following entities may legally invest any sinking funds, moneys, or other
funds, in securitized bonds:
(a)Subject to applicable statutory restrictions on state or local investment
authority, the Commonwealth, units of local government, political
subdivisions, public bodies, and public officers, except for:
1. Members of the commission;
2. The commission's technical advisory and other staff; and
3. Employees of the Attorney General's Office of Rate Intervention;
(b)Banks and bankers, savings and loan associations, credit unions, trust
companies, savings banks and institutions, investment companies, insurance
associations, and other persons carrying on a banking or insurance business;
(c)Personal representatives, guardians, trustees, and other fiduciaries; and
(d)All other persons authorized to invest in bonds or other obligations of a
similar nature.
(2)Any determination of the commission made in connection with any financing order
and any financing order of the commission issued pursuant to this subsection shall
be a binding, irrevocable, and final order of the commission, and binding on the
commission and the Commonwealth. The Commonwealth and its agencies,
including the commission, pledge and agree with bondholders, the owners of the
securitized property, and other financing parties that the Commonwealth and its
agencies shall not undertake any of the prohibited actions listed in this subsection.
This subsection shall not preclude limitation or alteration, if full compensation is
made by law for the full protection of the securitized surcharges collected pursuant
to a financing order and of the bondholders, any assignee, or financing party
entering into a contract with the electric utility. The Commonwealth and its
agencies, including the commission, shall not:
(a)Alter the provisions of KRS 278.670 to 278.696 and 65.114 which authorize
the commission to create an irrevocable contract right or right to sue by the
issuance of a financing order creating securitized property, making the
securitized surcharges imposed by a financing order irrevocable, binding, or
affecting the nonbypassable charges for all existing and future retail
customers of the electric utility;
(b)Take or permit any action that impairs or would impair the value of
securitized property or the security for the securitized bonds or revises the
securitized costs for which recovery is authorized;
(c)In any way impair the rights and remedies of the bondholders, assignees, and
other financing parties; and
(d)Except for changes made pursuant to the formula-based true-up mechanism
authorized under KRS 278.678, reduce, alter, or impair securitized surcharges
that are to be imposed, billed, charge, collected, and remitted for the benefit of
the bondholders, any assignee, and any other financing parties until any and
all principal, interest, premium, financing costs, and other fees, expenses, or
charges incurred, and any contracts to be performed, in connection with the
related securitized bonds have been paid and performed in full.
(3)Any person or entity that issues securitized bonds may include the language
specified in this subsection in the securitized bonds and related documentation.