Section 848.2 Of Article 5.6. Financing Utility Recovery From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 4. >> Article 5.6.
848.2
. (a) The financing entity may issue recovery bonds upon
approval by the commission in the pertinent financing orders.
Recovery bonds shall be nonrecourse to the credit or any assets of
the recovery corporation, other than the recovery property as
specified in the pertinent financing order.
(b) The recovery corporation may sell and assign all or portions
of its interest in recovery property to one or more financing
entities that make that recovery property the basis for issuance of
recovery bonds, to the extent approved in the financing order. The
recovery corporation or financing entity may pledge recovery property
as collateral, directly or indirectly, for recovery bonds to the
extent approved in the pertinent financing orders providing for a
security interest in the recovery property, in the manner set forth
in Section 848.3. In addition, recovery property may be sold or
assigned by (1) the financing entity or a trustee for the holders of
recovery bonds in connection with the exercise of remedies upon a
default, or (2) any person acquiring the recovery property after a
sale or assignment pursuant to this subdivision.
(c) To the extent that any interest in recovery property is so
sold or assigned, or is so pledged as collateral, the commission
shall authorize the recovery corporation to contract with the
financing entity that it will continue to operate its system to
provide service to consumers within its service territory, will
collect amounts in respect of the fixed recovery amounts for the
benefit and account of the financing entity, and will account for and
remit these amounts to or for the account of the financing entity.
Contracting with the financing entity in accordance with that
authorization shall not impair or negate the characterization of the
sale, assignment, or pledge as an absolute transfer, a true sale, or
security interest, as applicable.
(d) Notwithstanding Section 1708 or any other provision of law,
any requirement under this article or a financing order that the
commission take action with respect to the subject matter of a
financing order shall be binding upon the commission, as it may be
constituted from time to time, and any successor agency exercising
functions similar to the commission, and the commission shall have no
authority to rescind, alter, or amend that requirement in a
financing order. The approval by the commission in a financing order
of the issuance by the recovery corporation or a financing entity of
recovery bonds shall include the approvals, if any, as may be
required by Article 5 (commencing with Section 816) and Section
701.5. Nothing in Section 701.5 shall be construed to prohibit the
issuance of recovery bonds upon the terms and conditions as may be
approved by the commission in a financing order. Section 851 is not
applicable to the transfer or pledge of recovery property, the
issuance of recovery bonds, or related transactions approved in a
financing order.