# Public Utilities (GPU)

## Title 7. Gas, Electric, and Water Companies

### Subtitle 5. Electric Industry Restructuring

#### Section 7-539

(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.

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Md. Code Ann., Pub. Util. (as displayed at mgaleg.maryland.gov, October 16, 2026)