Section 8-1-8.9-13 - SNG property interest; assignability(a) An energy utility may assign an SNG property interest to an assignee, including: (1) another party to the qualified contract; or(2) a financing entity. An assignee may in turn assign an SNG property interest to a financing entity that provides financing to the assignee.
(b) An assignment to a financing entity under this section may be:(1) an absolute assignment of the SNG property interest; or(2) an assignment of the SNG property interest as collateral for an obligation owed to the financing entity.(c) An assignee under this section may enforce the SNG property interest by all applicable legal and equitable means.(d) Any amounts collected by an energy utility in connection with the sale, transfer, or disposition of substitute natural gas under a qualified contract that forms the basis of an SNG property interest assigned under this section constitute the property of the assignee. Pending the transfer of the SNG property interest to the assignee, the amounts described in this subsection shall be: (1) segregated by the energy utility; and(2) held in trust for the benefit of the assignee; subject to the terms of the qualified contract that forms the basis of the SNG property interest that is being assigned.
As added by P.L. 175-2007, SEC.21.