69-3-1622. Sales of Montana energy impact assistance property. (1) (a) A sale, assignment, or transfer of Montana energy impact assistance property is an absolute transfer and true sale of, and not a pledge of or secured transaction relating to, the seller's right, title, and interest in, to, and under the Montana energy impact assistance property if the documents governing the transaction expressly state that the transaction is a sale or other absolute transfer. A transfer of an interest in Montana energy impact assistance property may be created when:

(i) the financing order creating and describing the Montana energy impact assistance property is effective;

(ii) the documents evidencing the transfer of the Montana energy impact assistance property are executed and delivered to the assignee; and

(iii) value is received.

(b) A transfer of an interest in Montana energy impact assistance property must be filed with the secretary of state and perfected under Title 30, chapter 9A, part 3, against all third persons, including any judicial lien or other lien creditors or any claims of the seller or creditors of the seller, other than creditors holding a prior security interest, ownership interest, or assignment in the Montana energy impact assistance property previously perfected in accordance with 69-3-1621 or this subsection (1).

(2) The characterization of a sale, assignment, or transfer as an absolute transfer and true sale, and the corresponding characterization of the property interest of the assignee is not affected or impaired by:

(a) commingling of Montana energy impact assistance revenue with other money;

(b) the retention by the seller of:

(i) a partial or residual interest, including an equity interest, in the Montana energy impact assistance property, whether direct or indirect, or whether subordinate or otherwise; or

(ii) the right to recover costs associated with taxes, franchise fees, or license fees imposed on the collection of Montana energy impact assistance revenue;

(c) any recourse that the purchaser may have against the seller;

(d) any indemnification rights, obligations, or repurchase rights made or provided by the seller;

(e) an obligation of the seller to collect Montana energy impact assistance revenues on behalf of an assignee;

(f) the treatment of the sale, assignment, or transfer for tax, financial reporting, or other purposes;

(g) any subsequent financing order amending a financing order as authorized by 69-3-1607; or

(h) any application of an adjustment mechanism as authorized by 69-3-1606(2)(a)(vi).

History: En. Sec. 17, Ch. 442, L. 2019.