RS 45:1237

§1237. Additional assignee; powers and duties of the corporation; expenditures; perfection of security interest on storm recovery property; limitations on bankruptcy A. In addition to the purpose and powers granted pursuant to the Louisiana Utilities Restoration Corporation Act, R.S. 45:1311 through 1328, the Louisiana Utilities Restoration Corporation, hereinafter referred to as "corporation" in this Section and in R.S. 45:1238 through 1240, shall have the power and authority to participate as an assignee in the financial transactions provided by this Part. Prior to the corporation participating as an assignee, the corporation, in each instance, shall receive prior authorization from the commission. Supplemental to the powers and duties provided in R.S. 45:1313 and 1316, the corporation may perform the functions and activities that assignees are authorized to do by this Part in financing storm recovery costs through storm recovery bonds, except the corporation shall not be an issuer of storm recovery bonds. The corporation's exercise of powers provided in this Part is the performance of an essential governmental function of the corporation. B. Financing of storm recovery costs pursuant to this Part is hereby recognized to be a valid public purpose for the corporation. The corporation may negotiate and become a party to such contracts as are necessary, convenient, or desirable to carry out the purposes of this Part. The corporation may perform such other acts as are necessary, convenient, or desirable to effectuate the purposes of this Part. C. The expenditure of money by the corporation pursuant to this Part shall be under the direction of its governing board and the regulation of the commission. Such money shall be paid by the corporation only in accordance with this Part and approved by the commission, pursuant to the procedures established by commission regulations or orders, as applicable. If authorized in a commission order, the corporation may purchase storm recovery property from an electric utility by using the net proceeds of storm recovery bonds that were loaned to the corporation by the issuer of storm recovery bonds that were approved by a financing order. The corporation shall not apply any proceeds of storm recovery bonds or storm recovery charges to any purpose not specified in a commission order, to any purpose in excess of the amount allowed for such purpose in the order, or to any purpose in contravention of the order. D. In addition to the restrictions required by R.S. 45:1324, the governing board of the corporation shall be prohibited from authorizing any rehabilitation, liquidation, or dissolution of the corporation, and no such rehabilitation, liquidation, or dissolution of the corporation shall take effect, as long as any storm recovery bonds issued in a transaction involving the corporation are outstanding, unless adequate protection and provision has been made for the payment of the bonds pursuant to the documents authorizing the issuance of the bonds. Prior to the date that is two years and one day after which the corporation no longer has any payment obligation outstanding to any issuer of storm recovery bonds, the corporation shall be prohibited from filing and shall have no authority to file a voluntary petition under the federal Bankruptcy Code, as it may, from time to time, be in effect, and neither any public official nor any organization, entity, or other person shall authorize the corporation to be or to become a debtor under the federal Bankruptcy Code during such period. The provisions of this Subsection shall be part of any contractual obligation owed to the holders of storm recovery bonds issued under this Part involving the corporation. Any such contractual obligation shall not subsequently be modified by state law during the period of the contractual obligation, and the state of Louisiana and the Louisiana Legislature hereby covenant with the holders that the state and any public instrumentality thereof and the Louisiana Legislature shall not limit or alter the denial of authority pursuant to this Subsection during the period referred to in this Subsection. E.(1) When the corporation is involved in the issuance of storm recovery bonds, the corporation shall pledge to, and agree with, the financing parties that until the storm recovery bonds and any ancillary agreements have been paid and performed in full, the corporation shall not do any of the following: (a) Take or permit any action that impairs or would impair the value of storm recovery property. (b) Except as allowed pursuant to this Paragraph and except for adjustments under any true-up mechanism established by the commission, reduce, alter, or impair storm recovery charges that are to be imposed, collected, and remitted for the benefit of the financing parties, until all principal, interest, premium, financing costs and other fees, expenses, or charges incurred, and any contracts to be performed, in connection with the related storm recovery bonds have been paid and performed in full. Nothing in this Paragraph shall preclude limitation or alteration if and when full compensation is made by law for the full protection of the storm recovery charges collected pursuant to a financing order and full protection of the holders of storm recovery bonds and any assignee or financing party. (2) Any person or entity that issues storm recovery bonds may include the pledge specified in this Subsection in the bonds and related documentation. F. For purposes of this Part, including without limitation all financing statements referenced in this Part, the corporation is considered to be a public entity under R.S. 39:1421 and a governmental unit under R.S. 10:9-102(a). Notwithstanding any provision of law to the contrary, including without limitation R.S. 33:4548.7 and R.S. 39:1430.1, the filing of a financing statement pursuant to this Part is the exclusive method of perfecting a sale, assignment, transfer, or pledge of or security interest or lien on storm recovery property or any right, title, or interest of an assignee or secured party including an issuer of storm recovery bonds therein, including without limitation to perfect a security interest granted by the corporation or by a governmental unit issuer. The provisions of this Section and R.S. 45:1239 shall not be interpreted to conflict with or modify the provisions of R.S. 10:9-109(c)(6) and R.S. 45:1230 through 1232. Financing statements referenced in this Part where the debtor, buyer, or secured party is a public entity and a governmental unit nevertheless shall be filed as provided in this Part. Acts 2021, No. 293, §2, eff. June 14, 2021.