Bill would set rules for utility bond property and creditor priority

The bill describes rules for liens and security interests in property tied to utility securitization bonds. The provisions concern property connected to utility securitization bonds, including revenue and proceeds from that property. The bill would take effect only if HB 6347 is enacted into law. The bill would take effect only if House Bill 6347 is enacted into law.

A commission or court would order revenue tied to securitization property paid to a financing party after a utility default, if the party applies. This applies when an electric utility or its successor defaults on payments of revenue tied to securitization property. The financing party must apply for the order. The order would remain in force during bankruptcy, reorganization, or other insolvency proceedings.