Upon the effective date of the pertinent financing order, the DDOT Underground Electric Company Infrastructure Improvement Property created by the financing order shall constitute an existing, present property right of the District. The District’s property right in the DDOT Underground Electric Company Infrastructure Improvement Revenue shall not be affected by the fact that the collection and remittance to the trustee of DDOT Underground Electric Company Infrastructure Improvement Charges by the electric company, in an agency capacity in accordance with the servicing agreement, depends on the electric company continuing to provide electric distribution services to customers in the District or continuing to perform servicing functions relating to the collection of DDOT Underground Electric Company Infrastructure Improvement Charges. DDOT Underground Electric Company Infrastructure Improvement Property shall exist whether or not the DDOT Underground Electric Company Infrastructure Improvement Charges have been billed, have accrued, or have been collected and notwithstanding the fact that the value or amount of the DDOT Underground Electric Company Infrastructure Improvement Revenue may be dependent on the electric company’s provision of future service to its customers. All DDOT Underground Electric Company Infrastructure Improvement Charges shall continue to be collected until the Bonds have been paid in full and financing costs related to the Bonds have been paid in full. All or any portion of the DDOT Underground Electric Company Infrastructure Improvement Property may be transferred or assigned by the District for the limited purpose of pledging the same as security for the repayment of Bonds issued to provide financing for the DDOT Underground Electric Company Infrastructure Improvement Activities and other financing costs authorized by this chapter and approved in the pertinent financing order. All the DDOT Underground Electric Company Infrastructure Improvement Property is pledged for the repayment of the Bonds or payment of financing costs. No transfer, sale, conveyance, assignment, or grant of security interest in or pledge of DDOT Underground Electric Company Infrastructure Improvement Property shall require authorization from the Commission. If the electric company defaults on any required remittance of DDOT Underground Electric Company Infrastructure Improvement Revenue to the trustee, a court, upon application of an interested party and without limiting any other remedies available to the applying party, shall order the sequestration of the DDOT Underground Electric Company Infrastructure Improvement Revenue with a trustee selected by the District for the benefit of the District and the bondholders and any financing parties. The court’s order shall remain in full force and effect notwithstanding any bankruptcy, reorganization, or other insolvency proceeding with respect to the electric company or any affiliate thereof. The DDOT Underground Electric Company Infrastructure Improvement Revenue and the interests of the District, the bondholders, any financing party are not subject to setoff, counterclaim, surcharge, or defense by the electric company, any affiliate thereof, or any other person or in connection with the bankruptcy, reorganization, or other insolvency proceeding of the electric company, any affiliate thereof, or any other entity. Any successor to the electric company shall be bound by the requirements of this section and shall perform and satisfy all obligations of, and have the same rights and obligations as, the electric company under the financing order and this chapter in the same manner and to the same extent as the electric company, including, without limitation, the obligation to collect the DDOT Underground Electric Company Infrastructure Improvement Revenue and remit the revenue to the trustee.
‹ Prev All District Of Columbia sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.