Creation of Recovery Property Clause Samples
The 'Creation of Recovery Property' clause establishes the legal framework for designating certain assets or rights as 'recovery property' for the purposes of financing or securitization. Typically, this involves specifying that particular receivables, charges, or revenue streams—such as those arising from utility rate adjustments—are to be treated as distinct property interests that can be pledged, sold, or otherwise used as collateral. By clearly defining and segregating these assets, the clause facilitates their use in structured finance transactions, thereby enabling entities to raise capital or manage risk more effectively.
Creation of Recovery Property. Upon the filing of the Issuance Advice Letter with respect to the Recovery Property pursuant to the Financing Order: (i) the related rights and interests of the Seller under the Financing Order, including the right to impose, collect and receive the Fixed Recovery Charges established pursuant to the Financing Order, will become Recovery Property, (ii) the Recovery Property will constitute a current property right, (iii) the Recovery Property will include the right, title and interest of the Seller to the Tariff imposing the Fixed Recovery Charges, and the right to obtain periodic true-up adjustments of the Fixed Recovery Charges, (iv) the owner of the Recovery Property will be legally entitled to ▇▇▇▇ Fixed Recovery Charges and collect payments in respect of the Fixed Recovery Charges in the aggregate amount sufficient to pay or fund, in accordance with the Indenture, the principal of the Recovery Bonds, all interest thereon, and all other Ongoing Financing Costs, and (v) the Recovery Property will not be subject to any Lien, except for the lien arising under Section 850.3(g) of the Wildfire Financing Law, the Financing Order and the Issuance Advice Letter.
Creation of Recovery Property. Upon the issuance of the Recovery Bonds pursuant to the Financing Order: (i) the right to impose, bill and collect the Recovery Charges established pursuant to the Financing Order, will become Recovery Property, (ii) the Recovery Property will constitute a vested, presently existing property right vested in the Holders, (iii) the Recovery Property will include the right, title and interest in and to the Recovery Charges established pursuant to the Financing Order, in and to all revenues, collections, claims, payments, money, or proceeds of or arising from the Recovery Charges, regardless of whether such revenues, collections, claims, payments, money, or proceeds are imposed, billed, received, collected, or maintained together with or commingled with other revenues, collections, claims, payments, money, or proceeds, and in and to all rights to obtain periodic adjustments to the Recovery Charges pursuant to the terms of the Financing Order, (iv) the owner of the Recovery Property will be legally entitled to bill Recovery Charges and collect payments in respect of the Recovery Charges in the aggregate amount sufficient to pay or fund, in accordance with the Indenture, the principal of and interest on the Recovery Bonds to pay the fees and expenses of servicing the Recovery Bonds, and to replenish the Capital Subaccount to the required reserve level until the Recovery Bonds are paid in full, and (v) the Recovery Property will not be subject to any Lien, except for the lien arising under Section 6 of the Act and the Financing Order.
Creation of Recovery Property. Upon the filing of the Issuance Advice Letter with respect to the Recovery Property pursuant to the Financing Order, regardless of the outcome of the pending appeals in Aglet Consumer Alliance v.
Creation of Recovery Property. Upon the filing of the Issuance Advice Letter with respect to the Recovery Property pursuant to the Financing Order, regardless of the outcome of the appeal in ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ et al. v.