69-3-1621. Security interests in Montana energy impact assistance property. (1) The creation, perfection, and enforcement of any security interest in Montana energy impact assistance property to secure the repayment of the principal of and interest on Montana energy impact assistance bonds, amounts payable under any ancillary agreement, and other financing costs are governed by this section.

(2) The following apply to a security interest:

(a) the description or indication of Montana energy impact assistance property in a transfer or security agreement and a financing statement is sufficient only if the description or indication refers to this part and the financing order creating the Montana energy impact assistance property;

(b) a security interest in Montana energy impact assistance property is a continuously perfected security interest and has priority over any other lien, created by operation of law or otherwise, which may subsequently attach to the Montana energy impact assistance property unless the holder of the security interest has agreed in writing otherwise in accordance with Title 30, chapter 9A, part 3;

(c) the priority of a security interest in Montana energy impact assistance property is not affected by the commingling of Montana energy impact assistance property or Montana energy impact assistance revenue with other money. An assignee, bondholder, or financing party has a perfected security interest in the amount of all Montana energy impact assistance property or Montana energy impact assistance revenue that is pledged for the payment of Montana energy impact assistance bonds even if the Montana energy impact assistance property or Montana energy impact assistance revenue is deposited in a cash or deposit account of the electric utility in which the Montana energy impact assistance revenue is commingled with other money, and any other security interest that applies to the other money does not apply to the Montana energy impact assistance revenue.

(d) Neither a subsequent order of the commission amending a financing order as authorized by 69-3-1607, nor application of an adjustment mechanism as authorized by 69-3-1606(2)(a)(vi), affects the validity, perfection, or priority of a security interest in or transfer of Montana energy impact assistance property.

(2) (a) A security interest in Montana energy impact assistance property is created, valid, and binding as soon as:

(i) the financing order that describes the Montana energy impact assistance property is issued;

(ii) a security agreement is executed and delivered; and

(iii) value is received for the Montana energy impact assistance bonds.

(b) Once a security interest in Montana energy impact assistance property is created, the security interest attaches without any physical delivery of collateral or any other act. The lien of the security interest is valid, binding, and perfected under Title 30, chapter 9A, part 3, against all parties having claims of any kind in tort, contract, or otherwise against the person granting the security interest, regardless of whether the parties have notice of the lien, upon the filing of a financing statement with the secretary of state.

(3) A valid and enforceable security interest in Montana energy impact assistance property is perfected only when it has attached and when a financing order has been filed with the secretary of state in accordance with procedures that the secretary of state may establish. The financing order must name the pledgor of the Montana energy impact assistance property as debtor and identify the property.

History: En. Sec. 16, Ch. 442, L. 2019.