§ 7–539
Statutes in effect as of October 1, 2026.
Md. Code Ann., Pub. Util. § 7-539 (2026)
Title 7. Gas, Electric, and Water Companies
Subtitle 5. Electric Industry Restructuring
§ 7–539LinkCopy Citation
(a)
An agreement by an electric company or assignee to transfer rate stabilization property that expressly states that the transfer is a sale or other absolute transfer signifies that:
(1)
the transaction is a true sale and is not a secured transaction; and
(2)
legal and equitable title has passed to the entity to which the rate stabilization property is transferred.
(b)
The status of the transfer as a true sale prevails regardless of any recourse the purchaser may have against the seller, or any other term of the parties’ agreement, including:
(1)
the seller’s retention of an equity interest in the rate stabilization property;
(2)
the fact that the electric company acts as the collector of qualified rate stabilization charges relating to the rate stabilization property; and
(3)
the treatment of the transfer as a financing for tax, financial reporting, or other purposes.