[§269G-6] Security interests in infrastructure resilience property; financing statements. (a) A security interest in infrastructure resilience property is valid and enforceable against the pledgor and third parties, subject to the rights of any third parties holding security interests in the infrastructure resilience property perfected in the manner described in this section, and attaches when all of the following have occurred:
(1) The commission has issued a financing order authorizing the infrastructure resilience charge to be included in the infrastructure resilience property;
(2) Value has been given by the pledgees of the infrastructure resilience property; and
(3) The pledgor has signed a security agreement covering the infrastructure resilience property.
(b) A valid and enforceable security interest in infrastructure resilience property is perfected when it has attached and when a financing statement has been filed with the bureau of conveyances naming the pledgor of the infrastructure resilience property as "debtor" and identifying the infrastructure resilience property.
Any description of the infrastructure resilience property shall be sufficient if it refers to the financing order creating the infrastructure resilience property. A copy of the financing statement shall be filed with the commission by the electric utility that is the pledgor or transferor of the infrastructure resilience property. The commission may require the electric utility to make other filings with respect to the security interest in accordance with procedures that the commission may establish; provided that the filings shall not affect the perfection of the security interest.
(c) A perfected security interest in infrastructure resilience property shall be a continuously perfected security interest in all infrastructure resilience property revenues and proceeds arising with respect thereto, whether or not the revenues or proceeds have accrued. Conflicting security interests shall rank according to priority in time of perfection. Infrastructure resilience property shall constitute property for all purposes, including for contracts securing bonds, whether or not the infrastructure resilience property revenues and proceeds have accrued.
(d) Subject to the terms of the security agreement covering the infrastructure resilience property and the rights of any third parties holding security interests in the infrastructure resilience property, perfected in the manner described in this section, the validity and relative priority of a security interest created under this section shall not be defeated or adversely affected by the commingling of revenues arising with respect to the infrastructure resilience property with other funds of the electric utility that is the pledgor or transferor of the infrastructure resilience property, or by any security interest in a deposit account of that electric utility perfected under article 9 of chapter 490, into which the revenues are deposited.
Subject to the terms of the security agreement, upon compliance with the requirements of section 490:9-312(b)(1), the pledgees of the infrastructure resilience property shall have a perfected security interest in all cash and deposit accounts of the electric utility in which infrastructure resilience property revenues have been commingled with other funds.
(e) If default occurs under the security agreement covering the infrastructure resilience property, the pledgees of the infrastructure resilience property, subject to the terms of the security agreement, and upon receiving approval from the commission for a foreclosure request, shall be entitled to foreclose or otherwise enforce their security interest in the infrastructure resilience property, subject to the rights of any third parties holding prior security interests in the infrastructure resilience property perfected in the manner provided in this section.
In addition, the commission may require in the financing order creating the infrastructure resilience property that in the event of default by the electric utility in payment of infrastructure resilience property revenues, the commission and any successor thereto, upon the application by the pledgees or assignees, including assignees under section 269G-4 of the infrastructure resilience property, and without limiting any other remedies available to the pledgees or assignees by reason of the default, shall order the sequestration and payment to the pledgees or assignees of infrastructure resilience property revenues. Any financing order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceedings with respect to the debtor, pledgor, or transferor of the infrastructure resilience property. Any surplus in excess of amounts necessary to pay principal; premiums, if any; interest, costs, and arrearages on the bonds; and associated financing costs arising under the security agreement, shall be remitted to the debtor, pledgor, or transferor, for the purpose of remitting such amounts to customers via the electric utility.
(f) Sections 490:9-204 and 490:9-205 shall apply to a pledge of infrastructure resilience property by the electric utility, an affiliate of the electric utility, or a financing entity. [L 2025, c 258, pt of §3]