§ 7-539
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/md/public-utilities/7-539A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§7–539.
(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.