Full Text of HB2197 94th General Assembly
HB2197sam001 94TH GENERAL ASSEMBLY
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Sen. James F. Clayborne Jr.
Filed: 11/29/2006
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| AMENDMENT TO HOUSE BILL 2197
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| AMENDMENT NO. ______. Amend House Bill 2197 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Public Utilities Act is amended by adding | 5 |
| Section 16-111.4 and the heading of Article XX and Sections | 6 |
| 20-101, 20-105, 20-110, 20-115, 20-120, 20-125, 20-127, | 7 |
| 20-130, 20-135, 20-140, 20-145, 20-150, 20-155, 20-160, | 8 |
| 20-165, 20-170, 20-175, and 20-180 as follows: | 9 |
| (220 ILCS 5/16-111.4 new) | 10 |
| Sec. 16-111.4. Provisions relating to rates following the | 11 |
| mandatory transition period. | 12 |
| (a) The General Assembly finds that although competition in | 13 |
| the electric services market is creating opportunities for new | 14 |
| products and services for retail customers and lower costs for | 15 |
| many users of electricity, additional steps should be taken in | 16 |
| order to mitigate the rate impacts associated with the end of | 17 |
| the mandatory transition period on those residential customers | 18 |
| that are served by the State's largest utilities, encourage the | 19 |
| use of renewable resources and energy efficiency in competitive | 20 |
| markets, and provide the revenues needed to ensure reliable | 21 |
| service, while still allowing for the development of an | 22 |
| effectively competitive electricity market that operates | 23 |
| efficiently and is equitable to all consumers. Accordingly, if | 24 |
| the residential customer electric service rates that have been |
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| approved by the Commission to take effect at the end of the | 2 |
| mandatory transition period for an electric utility reflect a | 3 |
| projected increase of more than 15% in the electric utility's | 4 |
| average rate charged to residential customers for bundled | 5 |
| electric service, such electric utility shall be required to | 6 |
| implement for all of its residential customers a rate | 7 |
| mitigation plan. If such electric utility serves two million or | 8 |
| more residential customers in its service area, its rate | 9 |
| mitigation plan shall incorporate a three-phase rate increase | 10 |
| with the following limitations on the increases in the electric | 11 |
| service rates to customers: (i) in 2007, no more than 7% over | 12 |
| the average rate charged to residential customers in 2006; (ii) | 13 |
| in 2008, no more than an additional 7% over the average rate | 14 |
| charged to residential customers in 2006; and (iii) in 2009, no | 15 |
| more than an additional 8% over the average rate charged to | 16 |
| residential customers in 2006. If such electric utility serves | 17 |
| more than 100,000 and fewer than two million residential | 18 |
| customers in its service area, its rate mitigation plan shall | 19 |
| incorporate a three-phase rate increase with the following | 20 |
| limitations on the increases in the electric service rates to | 21 |
| customers: (i) in 2007, no more than 14% over the average rate | 22 |
| charged to residential customers in 2006; (ii) in 2008, no more | 23 |
| than an additional 14% over the average rate charged to | 24 |
| residential customers in 2006; and (iii) in 2009, no more than | 25 |
| an additional 14% over the average rate charged to residential | 26 |
| customers in 2006. The above limitations on the increases to | 27 |
| customers shall be separately calculated for each residential | 28 |
| class of service. Such limitations on the increase shall be | 29 |
| calculated using the same data used in the electric utility's | 30 |
| most recent rate case.
Each electric utility required to | 31 |
| implement a mitigation plan under this Section shall submit | 32 |
| tariffs reflecting such plan to the Commission no later than 30 | 33 |
| days after the effective date of this amendatory Act of the | 34 |
| 94th General Assembly. The tariffs shall provide for the first |
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| credit that implements the rate mitigation plan and offsets the | 2 |
| otherwise applicable rate to appear on the customer's bill no | 3 |
| later than bills issued in May 2007 billing period. The | 4 |
| Commission shall issue an order with regard to such tariffs no | 5 |
| later than April 1, 2007, and may in that order require such | 6 |
| amendments as are necessary to bring the tariffs in compliance | 7 |
| with the provisions of this subsection (a). The order approving | 8 |
| the tariff shall authorize the utility to defer, record as a | 9 |
| regulatory asset, and collect over the period 2010 through | 10 |
| 2012, the amounts that would have otherwise been recovered but | 11 |
| for this subsection (a). Such collections shall not include | 12 |
| carrying costs. | 13 |
| This subsection (a) shall not apply to electric service | 14 |
| rates for classes other than the residential customer class. | 15 |
| For purposes of this Section, "residential customer" means any | 16 |
| customer who takes utility residential service, regardless of | 17 |
| the customer's choice of electric supplier. | 18 |
| Nothing in this subsection (a) shall be interpreted to | 19 |
| limit the Commission's authority over ratemaking or to preclude | 20 |
| the Commission from reviewing or approving other or | 21 |
| supplemental rate mitigation or phase-in plans or rate designs | 22 |
| proposed by an electric utility; or increasing, decreasing, or | 23 |
| changing an electric utility's rates; or reviewing or approving | 24 |
| individual rates and riders; to the extent otherwise allowed | 25 |
| under this Act. | 26 |
| (b) An electric utility that is required to file a rate | 27 |
| mitigation plan as provided in subsection (a) of this Section | 28 |
| and that serves two million or more residential customers in | 29 |
| this State, shall, notwithstanding any other provisions of this | 30 |
| Act, and without obtaining any approvals from the Commission | 31 |
| other than those set forth below, make the following payments | 32 |
| or incur the following costs associated with the development of | 33 |
| energy efficiency and renewable resources for the benefit of | 34 |
| its residential customers, and assistance to those residential |
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| customers least able to afford utility services: | 2 |
| (1) costs of $3 million prior to December 31, 2007, | 3 |
| associated with either customer education that promotes | 4 |
| the use of energy efficiency programs and services by | 5 |
| residential customers, maintenance and upgrades of a | 6 |
| website that allows such customers to analyze their energy | 7 |
| usage and provides incentives for the purchase of energy | 8 |
| efficient products, or the provision of energy efficient | 9 |
| lightbulbs to residential customers at a discount; | 10 |
| (2) payments of $10 million in aggregate during the | 11 |
| period January 2, 2007 through December 31, 2009 toward | 12 |
| energy efficiency programs, including demand response | 13 |
| programs, that are proposed by the electric utility for its | 14 |
| residential customers and approved by the Commission as | 15 |
| consistent with the goals and objectives stated in this | 16 |
| Section and in Section 16-101A of this Act. The electric | 17 |
| utility shall file a description of the programs it | 18 |
| proposes to implement under this item (2) with the | 19 |
| Commission within 30 days of the effective date of this | 20 |
| amendatory Act, and the Commission shall enter its order | 21 |
| approving or modifying such programs within 150 days of the | 22 |
| date on which the utility's proposal is filed. The | 23 |
| Commission may approve a request to continue such a program | 24 |
| beyond December 31, 2009, provided that in any order | 25 |
| approving such continuation the Commission shall provide | 26 |
| for recovery of the ongoing costs associated with such | 27 |
| program and specify how such costs will be recovered by the | 28 |
| utility; | 29 |
| (3) incremental costs associated with the purchase of | 30 |
| renewable energy of $10 million in total aggregate costs | 31 |
| during the period beginning January 2, 2007 and ending | 32 |
| December 31, 2009, provided that the Commission approve any | 33 |
| contract for such purchase that extends beyond December 31, | 34 |
| 2009 as consistent with the goals and objectives stated in |
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| this Section and in Section 16-101A of this Act, and that | 2 |
| if the contract for such purchase extends beyond December | 3 |
| 31, 2009 the Commission shall in its order approving such a | 4 |
| purchase provide for recovery of the ongoing costs | 5 |
| associated with such purchase and specify how such costs | 6 |
| will be recovered by the utility; | 7 |
| (4) payments of $1 million per year for each of the | 8 |
| years 2007, 2008, and 2009 associated with a pilot program | 9 |
| within the electric utility's service area that is proposed | 10 |
| and designed by the utilities for residential customers | 11 |
| eligible to participate in the State-administered Low | 12 |
| Income Home Energy Assistance Program that has been | 13 |
| reviewed and accepted by the Department of Healthcare and | 14 |
| Family Services and that provides for the provision of | 15 |
| electric service under a percentage of income payment plan; | 16 |
| (5) payments of $1 million per year for each of the | 17 |
| years 2007, 2008, and 2009 into a working families | 18 |
| assistance fund that is administered in coordination with | 19 |
| the Illinois Department of Healthcare and Family Services | 20 |
| and provides assistance to residential households within | 21 |
| the electric utility's service area that are not eligible | 22 |
| for the State-administered Low Income Home Energy | 23 |
| Assistance Program and that have household income less than | 24 |
| twice the poverty level; and | 25 |
| (6) costs of $4 million during the period January 2, | 26 |
| 2007 through December 31, 2009 that are associated with a | 27 |
| program that provides senior citizens who live in | 28 |
| subsidized housing and pay their own electric bills with | 29 |
| monthly bill credits in each of the July, August, and | 30 |
| September billing periods. | 31 |
| (c) An electric utility that is required to file a rate | 32 |
| mitigation plan as provided in subsection (a) of this Section | 33 |
| and that serves more than 100,000 but fewer than two million | 34 |
| residential customers in this State, shall, notwithstanding |
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| any other provisions of this Act and without obtaining any | 2 |
| approvals from the Commission other than those set forth below, | 3 |
| make the following payments or incur the following costs | 4 |
| associated with the development of energy efficiency and | 5 |
| renewable resources for the benefit of its residential | 6 |
| customers and assistance to those residential customers least | 7 |
| able to afford utility services: | 8 |
| (1) payments of at least $6 million prior to December | 9 |
| 31, 2008, toward energy efficiency programs that are | 10 |
| proposed by the electric utility for its residential | 11 |
| customers and approved by the Commission as consistent with | 12 |
| the goals and objectives stated in this Section and in | 13 |
| Section 16-101A of this Act. The electric utility shall | 14 |
| file a description of the programs it proposes to implement | 15 |
| under this item (1) with the Commission within 30 days of | 16 |
| the effective date of this amendatory Act, and the | 17 |
| Commission shall enter its order approving or modifying | 18 |
| such programs within 150 days of the date on which the | 19 |
| utility's proposal is filed. The Commission may approve a | 20 |
| request to continue such a program beyond December 31, | 21 |
| 2008, provided that in any order approving such | 22 |
| continuation, the Commission shall provide for recovery of | 23 |
| the ongoing costs associated with such program and specify | 24 |
| how such costs will be recovered by the utility; and | 25 |
| (2) costs, of at least a total of $9 million during the | 26 |
| period January 2, 2007 through December 31, 2008, that are | 27 |
| associated with programs that assist low income | 28 |
| residential customers pay their electric bills, which may | 29 |
| include programs similar to those described in subsection | 30 |
| (b) of this Section. | 31 |
| (d) The Commission shall, on or before December 31, 2009, | 32 |
| adopt rules governing the recovery through rates of the costs | 33 |
| associated with an electric utility's discretionary investment | 34 |
| in programs that promote the use of energy efficiency and |
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| renewable resources, other than those specific costs | 2 |
| identified in subsections (b) and (c) of this Section. | 3 |
| (e) (i) In the event that an electric utility that serves | 4 |
| two million or more residential customers in its service area | 5 |
| and that is required to file a rate mitigation plan as provided | 6 |
| in subsection (a) of this Section is assigned a noninvestment | 7 |
| grade credit rating on its senior unsecured debt from three | 8 |
| nationally recognized credit rating agencies, the limitations | 9 |
| in such rate mitigation plan shall cease to apply, rates | 10 |
| reflecting the full residential revenue requirement previously | 11 |
| approved for the utility shall be fully in effect, and the | 12 |
| utility shall begin recovering all amounts that have been | 13 |
| deferred on the terms set forth in the tariff approved by the | 14 |
| Commission. In addition, in such event the provisions of | 15 |
| subsections (b) and (c) of this Section shall cease to apply | 16 |
| and shall be of no further force and effect except for any | 17 |
| provision for cost recovery that has been made for the costs, | 18 |
| including ongoing costs, of such programs and purchases. | 19 |
| (ii) In the event that an electric utility that serves over | 20 |
| 100,000 and fewer than two million residential customers in its | 21 |
| service area and that is required to file a rate mitigation | 22 |
| plan as provided in subsection (a) of this Section is assigned | 23 |
| a noninvestment grade corporate credit rating or issuer rating | 24 |
| from either Standard & Poor's or Moody's Investor Service, the | 25 |
| limitations in such rate mitigation plan shall cease to apply, | 26 |
| rates reflecting the full residential revenue requirement | 27 |
| previously approved for the utility shall be fully in effect, | 28 |
| and the utility shall begin recovering all amounts that have | 29 |
| been deferred on the terms set forth in the tariff approved by | 30 |
| the Commission. In addition, in such event the provisions of | 31 |
| subsections (b) and (c) of this Section shall cease to apply | 32 |
| and shall be of no further force and effect except for any | 33 |
| provisions for cost recovery that has been made for the costs, | 34 |
| including ongoing costs, of such programs and purchases. |
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| (f) In order to facilitate the recovery of amounts deferred | 2 |
| under this Section, the electric utility may issue rate | 3 |
| mitigation bonds pursuant to Article XX of this Act. | 4 |
| (220 ILCS 5/Art. XX heading new) | 5 |
| ARTICLE XX. RATE MITIGATION | 6 |
| (220 ILCS 5/20-101 new) | 7 |
| Sec. 20-101. Short title. This Article may be cited as the | 8 |
| Rate Mitigation Law of 2006. | 9 |
| (220 ILCS 5/20-105 new) | 10 |
| Sec. 20-105. Definitions. As used in this Article: | 11 |
| "Assignee" means a person to whom an electric utility or | 12 |
| another assignee assigns, sells, or transfers, other than as | 13 |
| security, all or a portion of its right to or interest in | 14 |
| bondable property. Except as specifically provided in this | 15 |
| Article, an assignee shall not be subject to the provisions of | 16 |
| this Act and any rules adopted under this Act. | 17 |
| "Bond charge" means a charge, expressed as an amount per | 18 |
| kilowatt hour, that is imposed on residential customers, | 19 |
| pursuant to Section 16-111.4 and Section 20-130 of this Act, to | 20 |
| implement a financing order, as modified at any time pursuant | 21 |
| to the provisions of this Article. | 22 |
| "Bondable property" means property consisting of the | 23 |
| irrevocable right to impose, charge, collect, and receive, and | 24 |
| be paid from collections of, bond charges, in the amount | 25 |
| necessary to provide for the full recovery of all qualified | 26 |
| bondable costs as set forth in the related financing order, all | 27 |
| rights of the related electric utility under the financing | 28 |
| order, including, without limitation, all rights to obtain | 29 |
| periodic adjustments of the related bond charges pursuant to | 30 |
| subsection (b) of Section 20-115, and all revenues, | 31 |
| collections, payments, money, and proceeds arising under, or |
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| with respect to, all of the foregoing. | 2 |
| "Commission" means the Illinois Commerce Commission or any | 3 |
| successor agency. | 4 |
| "Customer" means any person that is an end user taking | 5 |
| tariffed service as defined in Section 16-102 of this Act from | 6 |
| an electric utility and that is connected to any part of the | 7 |
| transmission and distribution system within an electric | 8 |
| utility's service territory within this State. | 9 |
| "Deferred power supply amounts" means the power supply | 10 |
| costs incurred by an electric utility (or for the purposes of | 11 |
| this Article estimated to be incurred during the years 2007, | 12 |
| 2008, and 2009) through any power procurement process approved | 13 |
| by the Federal Energy Regulatory Commission or the Illinois | 14 |
| Commerce Commission and that would have been recovered through | 15 |
| rates approved by the Commission but that are not recovered | 16 |
| during the years 2007 through 2009 as a result of the | 17 |
| limitations stated in Section 16-111.4. | 18 |
| "Electric utility" has the meaning set forth in Section | 19 |
| 16-102 of the Public Utilities Act. | 20 |
| "Financing entity" means an electric utility, a special | 21 |
| purpose entity, or any other assignee of bondable property that | 22 |
| issues rate mitigation bonds. Except as specifically provided | 23 |
| in this Act, a financing entity that is not an electric utility | 24 |
| shall not be subject to the provisions of this Act and any | 25 |
| rules adopted under this Act. | 26 |
| "Financing order" means one or more irrevocable written | 27 |
| orders issued by the Commission pursuant to this Article that | 28 |
| determines the amount or method of calculating the amount of | 29 |
| qualified bondable costs and the initial amount or method of | 30 |
| calculating the initial amount of bond charges authorized to be | 31 |
| imposed to recover qualified bondable costs, including the | 32 |
| costs to be financed from the proceeds of the rate mitigation | 33 |
| bonds, as well as on-going costs associated with servicing and | 34 |
| credit enhancing the rate mitigation bonds, and provides the |
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| electric utility specific authority to issue or cause to be | 2 |
| issued, directly or indirectly, rate mitigation bonds through a | 3 |
| financing entity and related matters, as provided in this | 4 |
| Article. The order shall become effective immediately upon the | 5 |
| written consent of the electric utility related to the order, | 6 |
| as provided in this Article. | 7 |
| "Issuance date" means the date on which any rate mitigation | 8 |
| bonds are issued and sold. | 9 |
| "Non-bypassable" means, with regard to the right of a | 10 |
| financing party, or an electric utility on its behalf, to | 11 |
| impose and collect bond charges from all existing and future | 12 |
| residential customers, the ability to collect such charges from | 13 |
| all such customers located within an electric utility's service | 14 |
| territory even if those customers elect to purchase electricity | 15 |
| from another supplier or choose to operate new on-site | 16 |
| generation, or even if the utility goes out of business and its | 17 |
| service area is acquired by another utility, including a | 18 |
| municipal utility. | 19 |
| "Pledgee" means any entity to which bondable property is | 20 |
| pledged or in favor of which a security interest or other lien | 21 |
| in bondable property is created to secure the payment of rate | 22 |
| mitigation bonds and related costs and expenses, such as costs | 23 |
| of collection and enforcement. | 24 |
| "Qualified bondable costs" means an amount equal to or less | 25 |
| than the amount of any deferred power supply amounts of an | 26 |
| electric utility that are identified in a financing order, | 27 |
| together with: | 28 |
| (1) the cost of retiring existing debt or equity | 29 |
| capital of the electric utility, including accrued | 30 |
| interest, premium, and other fees, costs, and charges | 31 |
| relating thereto, with the proceeds of the financing of | 32 |
| bondable property; | 33 |
| (2) if requested by an electric utility in its | 34 |
| application for a financing order, federal, State, and |
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| local tax liabilities associated with the recovery of | 2 |
| qualified regulatory assets and deferred power supply | 3 |
| amounts; and | 4 |
| (3) the costs incurred to issue, service, or refinance | 5 |
| rate mitigation bonds, including interest, acquisition, or | 6 |
| redemption premium, and other financing costs, whether | 7 |
| paid upon issuance or over the life of the rate mitigation | 8 |
| bonds, including, but not limited to, legal, accounting, | 9 |
| rating agency, trustee, and underwriting fees, credit | 10 |
| enhancements, service charges, overcollateralization, | 11 |
| interest rate cap, swap or collar, yield maintenance, | 12 |
| maturity guarantee, or other hedging agreements, equity | 13 |
| investments, operating costs, and other related fees, | 14 |
| costs and charges, or to assign, sell, or otherwise | 15 |
| transfer bondable property; | 16 |
| provided that the total amount of qualified bondable costs for | 17 |
| an electric utility shall not exceed its deferred power supply | 18 |
| amounts. | 19 |
| "Rate mitigation bonds" means bonds, notes, certificates | 20 |
| of participation or beneficial interest, or other evidences of | 21 |
| indebtedness or ownership issued pursuant to an indenture, | 22 |
| contract, or other agreement of an electric utility or a | 23 |
| financing entity, the proceeds of which are used, directly or | 24 |
| in-directly, to recover, finance, or refinance qualified | 25 |
| bondable costs and which are, directly or indirectly, secured | 26 |
| by or payable from bondable property. References in this | 27 |
| Article to principal, interest, and acquisition or redemption | 28 |
| premium with respect to rate mitigation bonds that are issued | 29 |
| in the form of certificates of participation or beneficial | 30 |
| interest or other evidences of ownership shall refer to the | 31 |
| comparable payments on such securities. | 32 |
| "Residential customer" means any customer who takes any | 33 |
| bundled or unbundled tariffed service, including delivery | 34 |
| service, from the utility which service is classified as |
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| "residential" for ratemaking purposes, and thus receives | 2 |
| utility goods or services through the utility's transmission | 3 |
| and distribution system. | 4 |
| "Transmission and distribution system" means, with respect | 5 |
| to an electric utility, any facility or equipment that is used | 6 |
| for the transmission, distribution, or delivery of electricity | 7 |
| to the customers of the electric utility, including, but not | 8 |
| limited to, the land, structures, meters, lines, switches, and | 9 |
| all other appurtenances thereof and thereto, owned or | 10 |
| controlled by the electric utility within this State. | 11 |
| (220 ILCS 5/20-110 new) | 12 |
| Sec. 20-110. Authorization for issuance of rate mitigation | 13 |
| bonds. | 14 |
| (a) For purposes of recovering qualified bondable costs, | 15 |
| the Commission shall authorize the issuance of rate mitigation | 16 |
| bonds by an electric utility or other financing entity | 17 |
| designated by the electric utility. Rate mitigation bonds shall | 18 |
| be secured through an irrevocable financing order imposing a | 19 |
| non-bypassable bond charge, as provided in Section 20-130, and | 20 |
| shall provide for collection of the bond charge by the electric | 21 |
| utility, an assignee, a financing entity, or a pledgee of | 22 |
| bondable property. The net proceeds of the rate mitigation | 23 |
| bonds shall be used by or on behalf of the electric utility for | 24 |
| the purposes of recovering qualified bondable costs. | 25 |
| Notwithstanding any other provision of law to the contrary, | 26 |
| except for adjustments authorized under subsection (b) of | 27 |
| Section 20-115, bond charges permitted by a financing order | 28 |
| shall not be offset, reduced, adjusted, or otherwise diminished | 29 |
| either directly or indirectly, and the obligation of customers | 30 |
| to pay bond charges shall not be subject to any offset, | 31 |
| defense, reduction, or counterclaims, including any resulting | 32 |
| from the utility's failure to perform past, present, or future | 33 |
| services. |
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| (b) For the purposes of recovering qualified bondable | 2 |
| costs, the issuance of rate mitigation bonds for an electric | 3 |
| utility shall be authorized by the Commission if the issuance | 4 |
| of the rate mitigation bonds and the imposition of the bond | 5 |
| charge authorized by the financing order are reasonably | 6 |
| expected to provide the electric utility with access to lower | 7 |
| cost financing than would otherwise be available using | 8 |
| traditional utility financing methods. | 9 |
| (c) The financing order shall authorize the issuance of | 10 |
| rate mitigation bonds with scheduled amortization upon | 11 |
| issuance of not less than three and not more than 6 years, as | 12 |
| determined by the electric utility pursuant to item (2) of | 13 |
| subsection (a) of Section 20-115, with a legal final maturity | 14 |
| up to 2 years after the end of the scheduled amortization | 15 |
| period, provided however that the scheduled amortization | 16 |
| period shall not extend beyond December 31, 2012. | 17 |
| (d) The financing order shall specify how the proceeds of | 18 |
| the bonds shall be used to recover deferred power supply | 19 |
| amounts and also specify the procedures to be used to ensure | 20 |
| that customers do not pay more than the deferred power supply | 21 |
| amounts as a result of recovering such amounts through the | 22 |
| issuance of rate mitigation bonds. | 23 |
| (e) Rate mitigation bonds may be issued in one or more | 24 |
| series, in one or more offerings, and each such series may | 25 |
| consist of one or more classes of rate mitigation bonds. | 26 |
| (f) The Commission shall impose no conditions in its | 27 |
| financing order other than those authorized in this Article. | 28 |
| (g) The Commission's findings under this Section shall be | 29 |
| final and not subject to change or collateral attack in any | 30 |
| other proceeding. | 31 |
| (220 ILCS 5/20-115 new) | 32 |
| Sec. 20-115. Financing orders. | 33 |
| (a) A financing order issued by the Commission pursuant to this |
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| Article shall: | 2 |
| (1) authorize the electric utility or other financing | 3 |
| entity designated by the electric utility to issue rate | 4 |
| mitigation bonds to finance the qualified bondable costs | 5 |
| and to pledge or assign, sell, or otherwise transfer the | 6 |
| related bondable property without further order of the | 7 |
| Commission; | 8 |
| (2) afford the electric utility substantial | 9 |
| flexibility in establishing the terms and conditions of any | 10 |
| rate mitigation bonds and authorize the electric utility, | 11 |
| prior to the closing of the issuance and sale of the | 12 |
| related rate mitigation bonds, to fix the amount of the | 13 |
| initial bond charge to be imposed upon, charged to, and | 14 |
| collected and received from the residential customers of | 15 |
| the electric utility in an amount not less than the amount | 16 |
| necessary to fully recover qualified bondable costs, | 17 |
| reflecting the actual rate of interest thereon and all | 18 |
| other actual qualified bondable costs, including any | 19 |
| required overcollateralization, associated with the | 20 |
| issuance of such rate mitigation bonds; | 21 |
| (3) require the electric utility to file a notice with | 22 |
| the Commission, not later than 5 business days after the | 23 |
| issuance date of the rate mitigation bonds, of the terms | 24 |
| and conditions of any rate mitigation bonds secured by or | 25 |
| payable from the bond charges, including information as to | 26 |
| the servicing fees, if any, imposed with respect to the | 27 |
| collection of the bond charges and the schedule for | 28 |
| payments of principal and interest on the rate mitigation | 29 |
| bonds. Notwithstanding any other provision of law, (i) the | 30 |
| Commission shall not have authority to disapprove the terms | 31 |
| and conditions of the rate mitigation bonds as set forth in | 32 |
| the notice, which terms and conditions shall not be subject | 33 |
| to change or modification, and (ii) the notice to the | 34 |
| Commission required to be given by the electric utility |
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| under this item (3) and the issuance and sale of rate | 2 |
| mitigation bonds shall not be subject to the provisions of | 3 |
| this Act or any other law or regulation regulating the sale | 4 |
| of property or assets or the issuance of securities by an | 5 |
| electric utility and no such law shall affect the rights of | 6 |
| bondholders; and | 7 |
| (4) require that the electric utility's tariffs | 8 |
| implementing any nonbypassable bond charge shall provide | 9 |
| that the amount of such charge be stated separately from | 10 |
| the amounts otherwise billed by such electric utility for | 11 |
| the rates applicable to the utility service taken by such | 12 |
| residential customers, including bundled service rates and | 13 |
| delivery service rates. | 14 |
| (b) Each financing order shall provide for mandatory | 15 |
| periodic adjustments of the bond charges that are the subject | 16 |
| of the financing order, upon filing by the affected electric | 17 |
| utility, an assignee, a financing entity, or pledgee, to | 18 |
| conform the bond charges to the schedule of payments of | 19 |
| principal and interest on the rate mitigation bonds provided to | 20 |
| the Commission by the electric utility pursuant to item (3) of | 21 |
| subsection (a) of this Section. The adjustments shall be made | 22 |
| at least annually. Each adjustment shall be formula-based, | 23 |
| shall be in the amount required to ensure receipt of revenues | 24 |
| sufficient to provide for the timely payment of qualified | 25 |
| bondable costs, including, without limitation, the timely | 26 |
| payment of principal and interest and acquisition or redemption | 27 |
| premium on rate mitigation bonds issued to finance qualified | 28 |
| bondable costs, which shall be recovered over the term of the | 29 |
| rate mitigation bonds and in accordance with the schedule of | 30 |
| payments of principal and interest on the rate mitigation bonds | 31 |
| provided to the Commission by the electric utility pursuant to | 32 |
| item (3) of subsection (a) of this Section. Each adjustment | 33 |
| shall become effective on the date it is requested to be | 34 |
| effective by the electric utility, provided that date is no |
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| less than 45 days after the filing of the request for | 2 |
| adjustment with the Commission. Each request for an adjustment | 3 |
| shall become effective as filed absent a determination by the | 4 |
| Commission of manifest error. The Commission shall make a | 5 |
| determination as to manifest error with respect to the request | 6 |
| within 30 days after its filing and, if the Commission makes a | 7 |
| determination of manifest error, the Commission shall resolve | 8 |
| the error in a timely manner so that the appropriate adjustment | 9 |
| will become effective on the date it was requested to be | 10 |
| effective. Periodic adjustments shall not in any way affect the | 11 |
| validity or irrevocability of the financing order or any sale, | 12 |
| assignment, or other transfer of or any pledge or security | 13 |
| interest granted with respect to the related bondable property | 14 |
| and shall not affect rights of bondholders. For purposes of | 15 |
| this subsection (b), "manifest error" means an arithmetic error | 16 |
| evident on the face of the filing. | 17 |
| (c) A financing order and the authority to impose, charge, | 18 |
| collect, and receive the bond charges authorized thereby shall | 19 |
| remain in effect until the related qualified bondable costs, | 20 |
| including, without limitation, the principal of, and accrued | 21 |
| interest and acquisition or redemption premium on any rate | 22 |
| mitigation bonds issued to finance such qualified bondable | 23 |
| costs, have been paid in full and all other obligations and | 24 |
| undertakings with respect thereto have been fully satisfied. | 25 |
| Until the qualified bondable costs, including, without | 26 |
| limitation, the principal of and accrued interest and | 27 |
| acquisition or redemption premium on any rate mitigation bonds | 28 |
| issued to finance such qualified bondable costs, have been paid | 29 |
| in full and all other obligations and undertakings with respect | 30 |
| thereto have been fully satisfied, the electric utility shall | 31 |
| be obligated to provide or deliver electricity through its | 32 |
| transmission and distribution system to its customers and shall | 33 |
| have the right to impose, charge, collect, and receive the bond | 34 |
| charges arising therefrom from its residential customers, |
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| which rights and obligations may be assignable solely within | 2 |
| the discretion of the electric utility. | 3 |
| (d) Each financing order shall provide that any bond | 4 |
| charges collected and held by the assignee or trustee of the | 5 |
| related rate mitigation bonds after the related qualified | 6 |
| bondable costs, including, without limitation, the principal | 7 |
| of and accrued interest and acquisition or redemption premium | 8 |
| on any rate mitigation bonds issued to finance such qualified | 9 |
| bondable costs, have been paid in full and all other | 10 |
| obligations and undertakings with respect thereto have been | 11 |
| fully satisfied shall be applied as a credit to reduce charges | 12 |
| to residential customers of the electric utility, except that | 13 |
| all qualified bondable costs as quantified in the financing | 14 |
| orders with respect to the electric utility shall be aggregated | 15 |
| for purposes of determining whether or not the total bond | 16 |
| charges held exceed the total qualified bondable costs | 17 |
| attributable to such electric utility and provided, further, | 18 |
| that the electric utility need not make the credit if the | 19 |
| credit will result in a recharacterization of the tax, | 20 |
| accounting, and other intended characteristics of the rate | 21 |
| mitigation bonds, including, but not limited to, a | 22 |
| re-characterization of the following intended characteristics: | 23 |
| (1) the recognition of rate mitigation bonds as debt on | 24 |
| the balance sheet of the electric utility for financial | 25 |
| accounting purposes; | 26 |
| (2) treatment of the rate mitigation bonds as debt of | 27 |
| the electric utility or its affiliates for federal income | 28 |
| tax purposes; and | 29 |
| (3) treatment of the transfer of bondable property by | 30 |
| the electric utility as a true sale for bankruptcy | 31 |
| purposes. | 32 |
| (e) An electric utility may commingle the revenues received | 33 |
| from amounts charged, collected, and received under bond | 34 |
| charges for qualified bondable costs approved in any one or |
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| more financing orders with other funds of the electric utility, | 2 |
| which shall in no way affect the validity or irrevocability of | 3 |
| any financing order issued in connection therewith or any sale, | 4 |
| assignment, or other transfer of or any pledge or security | 5 |
| interest granted with respect to the bondable property created | 6 |
| thereby. | 7 |
| (f) Except as provided otherwise in this Article, all | 8 |
| proceedings in connection with the determination of qualified | 9 |
| bondable costs, bond charges, and financing orders shall be | 10 |
| exempt from the other provisions of this Act and any rules | 11 |
| adopted under this Act. | 12 |
| (220 ILCS 5/20-120 new) | 13 |
| Sec. 20-120. Financing orders become irrevocable upon | 14 |
| issuance. | 15 |
| (a) Notwithstanding any other provision of law, each | 16 |
| financing order and the bond charges authorized therein shall | 17 |
| become irrevocable upon the issuance of the order and its | 18 |
| becoming effective pursuant to Section 20-135. The financing | 19 |
| order shall constitute a vested, presently existing property | 20 |
| right when it becomes effective and the bond charges, and the | 21 |
| bondable property shall constitute vested, presently existing | 22 |
| property rights upon their creation, pledge and transfer. | 23 |
| Following the transfer and receipt of consideration, the | 24 |
| property right in bondable property shall be vested ab initio | 25 |
| in such assignee. | 26 |
| (b) Neither the Commission nor any other governmental | 27 |
| entity shall have the authority, directly or indirectly, | 28 |
| legally or equitably, to rescind, alter, repeal, modify, or | 29 |
| amend a final financing order nor, following the vesting of | 30 |
| property rights as provided in subsection (a) of this Section, | 31 |
| to revalue, re-evaluate, or revise the amount of qualified | 32 |
| bondable costs, to determine that the bond charges or the | 33 |
| revenues required to recover qualified bondable costs are |
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| unjust or unreasonable, or in any way to reduce or impair the | 2 |
| value of bondable property, nor shall the amount of revenues | 3 |
| arising with respect thereto be subject to reduction, | 4 |
| impairment, postponement, or termination, provided, however, | 5 |
| that nothing in this Section precludes adjustments of the bond | 6 |
| charges in accordance with the provisions of subsection (b) of | 7 |
| Section 20-115. | 8 |
| (220 ILCS 5/20-125 new) | 9 |
| Sec. 20-125. State pledge to holders of rate mitigation | 10 |
| bonds; orders not pledge of State's credit; guarantee | 11 |
| adjustments. | 12 |
| (a) The State does hereby pledge and agree with the holders | 13 |
| of any rate mitigation bonds issued under the authority of this | 14 |
| Article, with the pledgee, owner, or assignee of bondable | 15 |
| property, with any financing entity that has issued rate | 16 |
| mitigation bonds with respect to which a financing order has | 17 |
| been issued, and with any person who may enter into agreements | 18 |
| with an electric utility or an assignee or pledgee thereof or a | 19 |
| financing entity pursuant to this Article, that the State will | 20 |
| not limit, alter, or impair any bondable property or other | 21 |
| rights vested in an electric utility or an assignee or pledgee | 22 |
| thereof or a financing entity or vested in the holders of any | 23 |
| rate mitigation bonds pursuant to a financing order until the | 24 |
| rate mitigation bonds, together with the interest and | 25 |
| acquisition or redemption premium, if any, thereon, are fully | 26 |
| paid and discharged or until the agreements are fully performed | 27 |
| on the part of the electric utility, any assignee or pledgee | 28 |
| thereof, or the financing entity, or in any way limit, alter, | 29 |
| impair, or reduce the value or amount of the bondable property | 30 |
| approved by a financing order or of the bond charges authorized | 31 |
| therein, provided, however, that nothing in this Section | 32 |
| precludes the adjustment of the bond charges in accordance with | 33 |
| subsection (b) of Section 20-115. Any financing entity is |
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| authorized to include this covenant and undertaking of the | 2 |
| State in any documentation with respect to the rate mitigation | 3 |
| bonds issued by the financing entity. | 4 |
| (b) Neither the rate mitigation bonds nor the related | 5 |
| financing order issued under this Article shall constitute a | 6 |
| debt or liability of the State or of any political subdivision | 7 |
| of the State, nor shall they constitute a pledge of the full | 8 |
| faith and credit of the State or any of its political | 9 |
| subdivisions. The issuance of rate mitigation bonds under this | 10 |
| Article shall not directly, indirectly, or contingently | 11 |
| obligate the State or any political subdivision of the State to | 12 |
| levy or pledge any form of taxation therefor or to make an | 13 |
| appropriation for their payment, and any rate mitigation bonds | 14 |
| shall be payable solely from the bondable property and other | 15 |
| proceeds or property as may be pledged therefor. | 16 |
| (220 ILCS 5/20-127 new) | 17 |
| Sec. 20-127. Proceeds of rate mitigation bonds. All | 18 |
| proceeds received from the issuance of rate mitigation bonds | 19 |
| shall not be considered income or revenue to the electric | 20 |
| utility for any State tax purposes. | 21 |
| (220 ILCS 5/20-130 new) | 22 |
| Sec. 20-130. Residential customers assessed for bond | 23 |
| charges. The bond charges established pursuant to financing | 24 |
| orders shall be assessed against all residential customers of | 25 |
| the electric utility, regardless of whether such customers take | 26 |
| bundled tariff services from the utility or purchase power from | 27 |
| other suppliers. Bond charges shall be established in | 28 |
| accordance with Sections 20-110 and 20-115 and shall apply | 29 |
| equally to each such residential customer of the electric | 30 |
| utility based on the amount of electricity delivered to the | 31 |
| residential customer through the transmission and distribution | 32 |
| system of the electric utility or any successor. |
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| (220 ILCS 5/20-135 new) | 2 |
| Sec. 20-135. Effectiveness of financing order. Each | 3 |
| financing order shall be effective only in accordance with the | 4 |
| terms of that financing order and upon the written consent of | 5 |
| the petitioning electric utility to all of those terms. | 6 |
| (220 ILCS 5/20-140 new) | 7 |
| Sec. 20-140. Recourse against issuer only. Rate mitigation | 8 |
| bonds shall be recourse only to the credit and assets of the | 9 |
| issuer of the rate mitigation bonds. | 10 |
| (220 ILCS 5/20-145 new) | 11 |
| Sec. 20-145. Electric utility to maintain records of bond | 12 |
| charges. An electric utility shall maintain or cause to be | 13 |
| maintained records of bond charges that have been assessed and | 14 |
| collected by the electric utility for each financing order | 15 |
| applicable to the electric utility. The electric utility | 16 |
| records and any records of a financing entity shall be made | 17 |
| available by the electric utility for inspection and | 18 |
| examination within a reasonable time upon demand therefor by | 19 |
| the Commission or the related financing entity. | 20 |
| (220 ILCS 5/20-150 new) | 21 |
| Sec. 20-150. Security. | 22 |
| (a) An electric utility or its assignee may sell, assign, | 23 |
| or otherwise transfer all or portions of its interest in | 24 |
| bondable property to assignees or financing entities in | 25 |
| connection with the issuance of rate mitigation bonds. In | 26 |
| addition, an electric utility, an assignee, or a financing | 27 |
| entity may pledge, grant a security interest in, or encumber | 28 |
| bondable property as collateral for rate mitigation bonds. | 29 |
| (b) Upon the transfer to an assignee and receipt of | 30 |
| consideration therefor, bondable property shall constitute |
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| presently existing property for all purposes, including for | 2 |
| contracts securing rate mitigation bonds, whether or not the | 3 |
| revenues and proceeds arising with respect thereto have accrued | 4 |
| and notwithstanding the fact that the value of the property | 5 |
| right may depend upon consumers using electricity or, in those | 6 |
| instances where consumers are customers of a particular | 7 |
| electric utility, the electric utility performing certain | 8 |
| services. The validity of any sale, assignment, or other | 9 |
| transfer of bondable property shall not be defeated or | 10 |
| adversely affected by the commingling by the electric utility | 11 |
| of revenues received from amounts charged, collected, and | 12 |
| received as bond charges with other funds of the electric | 13 |
| utility. Any description of the bondable property in a security | 14 |
| agreement or financing statement filed with respect to the | 15 |
| transfer of bondable property in accordance with Section 9-501 | 16 |
| of the Uniform Commercial Code shall be sufficient if it refers | 17 |
| to the financing order establishing the bondable property. | 18 |
| (c) A perfected security interest in bondable property is a | 19 |
| continuously perfected security interest in all revenues and | 20 |
| proceeds arising with respect thereto, whether or not the | 21 |
| revenues and proceeds shall have accrued. The validity and | 22 |
| relative priority of a pledge of or security interest in | 23 |
| bondable property shall not be defeated or adversely affected | 24 |
| by the commingling by the electric utility of revenues received | 25 |
| from amounts charged, collected, and received as bond charges | 26 |
| with other funds of the electric utility. Any description of | 27 |
| the bondable property in a security agreement or financing | 28 |
| statement filed with respect to the granting of a security | 29 |
| interest in bondable property in accordance with Section 9-501 | 30 |
| of the Uniform Commercial Code shall be sufficient if it refers | 31 |
| to the financing order establishing the bondable property, as | 32 |
| provided by subsection (f) of Section 9-108 of the Uniform | 33 |
| Commercial Code. | 34 |
| (d) In the event of default by the electric utility or its |
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| assignee in payment of revenues arising with respect to the | 2 |
| bondable property and upon the application by the pledgees or | 3 |
| transferees of the bondable property, the Commission or any | 4 |
| court of competent jurisdiction shall order the sequestration | 5 |
| and payment to the pledgees or transferees of revenues arising | 6 |
| with respect to the bondable property. The application shall | 7 |
| not limit any other remedies available to the pledgees or | 8 |
| transferees by reason of the default. The order shall remain in | 9 |
| full force and effect, notwithstanding any bankruptcy, | 10 |
| reorganization, or other insolvency proceedings with respect | 11 |
| to the debtor, pledgor, or transferor of the bondable property. | 12 |
| Any amounts in excess of amounts necessary to satisfy | 13 |
| obligations then outstanding on or related to rate mitigation | 14 |
| bonds shall be applied in the manner set forth in subsection | 15 |
| (d) of Section 20-115. | 16 |
| (e) To the extent that any interest in bondable property is | 17 |
| sold or assigned, or is pledged as collateral, the electric | 18 |
| utility shall be authorized to enter into a contract with the | 19 |
| pledgee, the assignee, or the financing entity providing that | 20 |
| the electric utility: (i) shall continue to operate its | 21 |
| transmission and distribution system to provide service to its | 22 |
| customers, (ii) shall impose, charge, collect, and receive bond | 23 |
| charges in respect of the bondable property for the benefit and | 24 |
| account of the pledgee, the assignee, or the financing entity, | 25 |
| and (iii) shall account for and remit those amounts to and for | 26 |
| the account of the pledgee, the assignee, or the financing | 27 |
| entity. In the event of a default by the electric utility in | 28 |
| respect of charging, collecting, and receiving revenues | 29 |
| derived from bond charges and upon the application by the | 30 |
| pledgee, the assignee, or the financing entity, the Commission | 31 |
| or any court of competent jurisdiction shall, by order, | 32 |
| designate a trustee or other entity to act in the place of the | 33 |
| electric utility to impose, meter, charge, collect, and receive | 34 |
| bond charges in respect of the bondable property for the |
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| benefit and account of the pledgee, the assignee, or the | 2 |
| financing entity. The Commission may, at its discretion, | 3 |
| establish criteria in its financing order for the selection of | 4 |
| any entity that may become a servicer of bondable property upon | 5 |
| the default of the electric utility. The Commission may also, | 6 |
| at its discretion, establish in its financing order financial | 7 |
| or other criteria that must be met by any other entity, | 8 |
| including an alternative retail electric supplier, that is or | 9 |
| may be authorized to collect bond charges on behalf of the | 10 |
| electric utility or any assignee or financing entity. | 11 |
| (f) An agreement by an assignor of bondable property not to | 12 |
| assert any defense, claim, or set-off against an assignee of | 13 |
| the bondable property shall be enforceable against the assignor | 14 |
| by the assignee and by any successor or subsequent assignee | 15 |
| thereof. | 16 |
| (220 ILCS 5/20-155 new) | 17 |
| Sec. 20-155. Transfer of bondable property. | 18 |
| (a) If an agreement by an electric utility or its assignee | 19 |
| to transfer bondable property expressly states that the | 20 |
| transfer is a sale or other absolute transfer, then, | 21 |
| notwithstanding any other provisions of law: | 22 |
| (1) the transfer shall constitute a sale by the | 23 |
| electric utility or its assignee of all right, title, and | 24 |
| interest of the electric utility or its assignee, as | 25 |
| applicable, in and to the bondable property; | 26 |
| (2) the transfer shall constitute a sale or other | 27 |
| absolute transfer of, and not a borrowing secured by, the | 28 |
| bondable property; | 29 |
| (3) upon execution and delivery of the agreement, the | 30 |
| electric utility or its assignee shall have no right, | 31 |
| title, or interest in or to the bondable property, except | 32 |
| to the extent of any retained equity permitted by the | 33 |
| provisions of this Article; and |
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| (4) the characterization of a transfer as a sale or | 2 |
| other absolute transfer shall not be affected or impaired | 3 |
| in any manner by, without limitation: (i) the assignor's | 4 |
| retention, or acquisition as part of the assignment | 5 |
| transaction or otherwise, of a pari passu equity interest | 6 |
| in bondable property or the fact that only a portion of the | 7 |
| bondable property is otherwise transferred; (ii) the | 8 |
| assignor's retention, or acquisition as part of the | 9 |
| assignment transaction or otherwise, of a subordinate | 10 |
| equity interest or other provision of credit enhancement on | 11 |
| terms substantially commensurate with market practices; | 12 |
| (iii) the fact that the electric utility acts as the | 13 |
| collector or servicer of bond charges; (iv) the assignor's | 14 |
| retention of bare legal title to bondable property for the | 15 |
| purpose of servicing or supervising the servicing of such | 16 |
| property and collections with respect thereto; (v) the | 17 |
| treatment of the electric utility as the "issuer" of any | 18 |
| rate mitigation bonds for purposes of the United States | 19 |
| securities laws; or (vi) the treatment of such transfer as | 20 |
| a financing for federal, State, or local tax purposes or | 21 |
| financial accounting purposes. | 22 |
| (b) The transfer shall be perfected against any third party | 23 |
| if: | 24 |
| (1) the Commission has issued a financing order with | 25 |
| respect to the bondable property; | 26 |
| (2) the agreement has been executed and delivered by | 27 |
| the electric utility or its assignee; and | 28 |
| (3) a financing statement has been filed with respect | 29 |
| to the transfer of the bondable property in accordance with | 30 |
| Article 9 of the Uniform Commercial Code. | 31 |
| (220 ILCS 5/20-160 new) | 32 |
| Sec. 20-160. Successor to electric utility. Any successor | 33 |
| to an electric utility, whether pursuant to any bankruptcy, |
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| reorganization, or other insolvency proceedings or pursuant to | 2 |
| any merger, consolidation, or sale or transfer of assets of the | 3 |
| electric utility, by operation of law, as a result of electric | 4 |
| power industry restructuring, or otherwise, shall perform and | 5 |
| satisfy all obligations and be entitled to the same rights of | 6 |
| its predecessor electric utility under this Article or the | 7 |
| financing order or any contract entered into pursuant to this | 8 |
| Article in the same manner and to the same extent as the | 9 |
| predecessor electric utility, including, but not limited to, | 10 |
| charging, collecting, receiving, and paying to the person | 11 |
| entitled thereto the revenues in respect of the bond charges | 12 |
| relating to the bondable property. Bondable property and any | 13 |
| payments in respect of bondable property, including, without | 14 |
| limitation, bond charges, shall not be subject to any setoffs, | 15 |
| counterclaims, surcharges, or defenses by the electric | 16 |
| utility, any customer, or any other person, in connection with | 17 |
| the bankruptcy, insolvency, or default of the electric utility | 18 |
| or otherwise. | 19 |
| (220 ILCS 5/20-165 new) | 20 |
| Sec. 20-165. Application for financing order; estimation | 21 |
| of deferred power supply amounts; treatment of over-estimate or | 22 |
| under-estimate. | 23 |
| (a) The electric utility may file one or more applications | 24 |
| for a financing order at any time after January 2, 2007 and | 25 |
| prior to December 31, 2009. In any such application, the | 26 |
| electric utility shall provide the total deferred power supply | 27 |
| amounts that are estimated to be accrued as a result of Section | 28 |
| 16-111.4 of this Act, and the total amount of such deferred | 29 |
| power supply amounts actually accrued through the calendar year | 30 |
| just prior to the year in which the application is filed. Any | 31 |
| financing order application may request the recovery of | 32 |
| qualified bondable costs through the issuance of rate | 33 |
| mitigation bonds in an amount equal to or less than the sum of |
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| (i) all deferred power supply amounts accrued or projected to | 2 |
| accrue through the projected date of issuance of the rate | 3 |
| mitigation bonds, together with (ii) deferred power supply | 4 |
| amounts projected to be incurred from the projected date of | 5 |
| issuance of the rate mitigation bonds through a period ending | 6 |
| not later than twelve months following the projected issuance | 7 |
| date of the rate mitigation bonds which are the subject of the | 8 |
| financing order, or if earlier, December 31, 2009. Any | 9 |
| financing order application also shall specify how the proceeds | 10 |
| of the bonds will be used to recover the deferred power supply | 11 |
| amounts (including the retirement of debt or equity incurred or | 12 |
| issued to pay such amounts) related to the qualified bondable | 13 |
| costs. | 14 |
| (b) Whether or not the electric utility has filed an | 15 |
| application pursuant to subsection (a) of this Section, the | 16 |
| electric utility may also file an application for a financing | 17 |
| order no later than January 31, 2010. In such application, the | 18 |
| electric utility shall provide the total deferred power supply | 19 |
| amounts accrued through December 31, 2009 to the extent not | 20 |
| included in an application filed pursuant to subsection (a) and | 21 |
| related to rate mitigation bonds issued and sold pursuant to | 22 |
| such prior application. | 23 |
| (c) To the extent that the actual amount of qualified | 24 |
| bondable costs, as determined after the issuance of the rate | 25 |
| mitigation bonds, exceeds the principal amount of the rate | 26 |
| mitigation bonds issued and sold, the electric utility shall be | 27 |
| entitled to recover the difference in a subsequent rate or | 28 |
| other proceeding. To the extent that the actual amount of | 29 |
| qualified bondable costs, as determined after the issuance of | 30 |
| the rate mitigation bonds, is less than the principal amount of | 31 |
| the rate mitigation bonds issued and sold, the electric utility | 32 |
| must apply the difference in a subsequent rate or other | 33 |
| proceeding as a credit to reduce charges to residential | 34 |
| customers. |
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| (220 ILCS 5/20-170 new) | 2 |
| Sec. 20-170. Expedited procedure for processing petitions | 3 |
| for and judicial review of financing orders. The following | 4 |
| procedures shall apply to the processing of petitions and | 5 |
| judicial review of the resulting financing orders: | 6 |
| (1) Notwithstanding any other provision of law, the | 7 |
| Commission shall render a written financing order | 8 |
| approving a petition seeking a financing order that meets | 9 |
| the requirements of this Article not later than 35 days | 10 |
| after the date the petition is filed. | 11 |
| (2) Upon the issuance of a financing order, the | 12 |
| Commission shall forthwith cause a certified copy of the | 13 |
| order to be served upon each party entitled to a copy of | 14 |
| the order. The electric utility shall, within 10 days after | 15 |
| service upon it, file with the Commission its written | 16 |
| consent to the order or its objections to the order. | 17 |
| (3) Any party to the proceedings resulting in a | 18 |
| financing order who claims to be aggrieved by the order, | 19 |
| including but not limited to, any electric utility that has | 20 |
| withheld its consent and objected to the order, may seek | 21 |
| judicial review of the order before the Illinois Supreme | 22 |
| Court in accordance with the applicable Illinois Supreme | 23 |
| Court rules and the provisions of this Article. Review on | 24 |
| appeal shall be based solely on the record before the | 25 |
| Commission and briefs to the court and, at the court's | 26 |
| discretion, oral argument, and shall be the exclusive | 27 |
| remedy for the parties involved in a proceeding resulting | 28 |
| in a financing order. | 29 |
| (220 ILCS 5/20-175 new) | 30 |
| Sec. 20-175. Subsequent ratemaking. The consideration or | 31 |
| approval by the Commission of a petition by any electric | 32 |
| utility under this Article, including the periodic adjustment |
|
|
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09400HB2197sam001 |
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| provided in subsection (b) of Section 20-115, shall be wholly | 2 |
| separate from and shall not be used in the Commission's | 3 |
| consideration of, any ratemaking or other proceeding involving | 4 |
| the electric utility, except as otherwise provided in this | 5 |
| Article. Without limiting the generality of the foregoing, in | 6 |
| all ratemaking proceedings following the issuance of rate | 7 |
| mitigation bonds, and except as provided in Section 16-111.4 | 8 |
| and in this Article XX, for ratemaking purposes the qualified | 9 |
| bondable costs recovered through the issuance of the rate | 10 |
| mitigation bonds shall be excluded from rate base and the rate | 11 |
| mitigation bonds shall be excluded from the electric utility's | 12 |
| capitalization and weighted average cost of the capital | 13 |
| calculation and shall not otherwise be taken into account for | 14 |
| any purpose. | 15 |
| (220 ILCS 5/20-180 new) | 16 |
| Sec. 20-180. Severability. Effective on the date that rate | 17 |
| mitigation bonds are first issued under this Article, if any | 18 |
| provision of this Article is held to be invalid or is | 19 |
| invalidated, superseded, replaced, repealed, or expires for | 20 |
| any reason, that occurrence shall not affect the validity of | 21 |
| any transfer or action taken under this Article by an electric | 22 |
| utility, an assignee, or a financing entity, or any rights | 23 |
| previously created under a financing order under this Article. | 24 |
| Any such transfer, action or rights shall remain in full force | 25 |
| and effect with respect to all rate mitigation bonds issued or | 26 |
| authorized in a financing order to be issued under this Article | 27 |
| prior to the date that the provision is held to be invalid or | 28 |
| is invalidated, superseded, replaced, or repealed, or that | 29 |
| expires for any reason. | 30 |
| Section 10. The Uniform Commercial Code is amended by | 31 |
| changing Sections 9-102, 9-108, 9-203, 9-301, and 9-515 as | 32 |
| follows:
|
|
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LRB094 03204 MJR 60762 a |
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| 1 |
| (810 ILCS 5/9-102) (from Ch. 26, par. 9-102)
| 2 |
| Sec. 9-102. Definitions and index of definitions.
| 3 |
| (a) Article 9 definitions. In this Article:
| 4 |
| (1) "Accession" means goods that are physically united | 5 |
| with other
goods in such a manner that the identity of the | 6 |
| original goods is not lost.
| 7 |
| (2) "Account", except as used in "account for", means a | 8 |
| right to
payment of a monetary obligation, whether or not | 9 |
| earned by performance, (i) for
property that has been or is | 10 |
| to be sold, leased, licensed, assigned, or
otherwise
| 11 |
| disposed of, (ii) for services rendered or to be rendered, | 12 |
| (iii) for a policy
of
insurance issued or to be issued, | 13 |
| (iv) for a secondary obligation incurred or
to be
incurred, | 14 |
| (v) for energy provided or to be provided, (vi) for the use | 15 |
| or hire
of a
vessel under a charter or other contract, | 16 |
| (vii) arising out of the use of a
credit or
charge card or | 17 |
| information contained on or for use with the card, or | 18 |
| (viii) as
winnings in a lottery or other game of chance | 19 |
| operated or sponsored by a State,
governmental unit of a | 20 |
| State, or person licensed or authorized to operate the
game
| 21 |
| by a State or governmental unit of a State. The term | 22 |
| includes
health-care-insurance
receivables. The term does | 23 |
| not include (i) rights to payment evidenced by
chattel
| 24 |
| paper or an instrument, (ii) commercial tort claims, (iii) | 25 |
| deposit accounts,
(iv)
investment property, (v) | 26 |
| letter-of-credit rights or letters of credit, or (vi)
| 27 |
| rights to
payment for money or funds advanced or sold, | 28 |
| other than rights arising out of
the
use of a credit or | 29 |
| charge card or information contained on or for use with the
| 30 |
| card.
| 31 |
| (3) "Account debtor" means a person obligated on an | 32 |
| account, chattel
paper, or general intangible. The term | 33 |
| does not include persons obligated to
pay a
negotiable |
|
|
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| instrument, even if the instrument constitutes part of | 2 |
| chattel
paper.
| 3 |
| (4) "Accounting", except as used in "accounting for", | 4 |
| means a record:
| 5 |
| (A) authenticated by a secured party;
| 6 |
| (B) indicating the aggregate unpaid secured | 7 |
| obligations as of a date
not more than 35 days earlier | 8 |
| or 35 days later than the date of the record; and
| 9 |
| (C) identifying the components of the obligations | 10 |
| in reasonable
detail.
| 11 |
| (5) "Agricultural lien" means an interest, other than a | 12 |
| security
interest,
in farm products:
| 13 |
| (A) which secures payment or performance of an | 14 |
| obligation for goods or services furnished in | 15 |
| connection with a debtor's
farming operation;
| 16 |
| (B) which is created by statute in favor of a | 17 |
| person that in the ordinary course of its business | 18 |
| furnished goods or
services to a debtor in connection | 19 |
| with a debtor's farming operation; and
| 20 |
| (C) whose effectiveness does not depend on the | 21 |
| person's possession
of the personal property.
| 22 |
| (6) "As-extracted collateral" means:
| 23 |
| (A) oil, gas, or other minerals that are subject to | 24 |
| a security interest
that:
| 25 |
| (i) is created by a debtor having an interest | 26 |
| in the minerals
before extraction; and
| 27 |
| (ii) attaches to the minerals as extracted; or
| 28 |
| (B) accounts arising out of the sale at the | 29 |
| wellhead or minehead of
oil, gas, or other minerals in | 30 |
| which the debtor had an interest before
extraction.
| 31 |
| (7) "Authenticate" means:
| 32 |
| (A) to sign; or
| 33 |
| (B) to execute or otherwise adopt a symbol, or | 34 |
| encrypt or similarly
process a record in whole or in |
|
|
|
09400HB2197sam001 |
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| part, with the present intent of the
authenticating
| 2 |
| person to identify the person and adopt or accept a | 3 |
| record.
| 4 |
| (8) "Bank" means an organization that is engaged in the | 5 |
| business of
banking. The term includes savings banks, | 6 |
| savings and loan associations, credit
unions, and trust | 7 |
| companies.
| 8 |
| (8.5) "Bondable property" has the meaning set forth in | 9 |
| Section 20-105 of the Public Utilities Act.
| 10 |
| (9) "Cash proceeds" means proceeds that are money, | 11 |
| checks, deposit
accounts, or the like.
| 12 |
| (10) "Certificate of title" means a certificate of | 13 |
| title with respect to
which a statute provides for the | 14 |
| security interest in question to be indicated on the
| 15 |
| certificate as a condition or result of the security | 16 |
| interest's obtaining
priority over
the rights of a lien | 17 |
| creditor with respect to the collateral.
| 18 |
| (11) "Chattel paper" means a record or records that | 19 |
| evidence both a
monetary obligation and a security interest | 20 |
| in specific goods, a security
interest in
specific goods | 21 |
| and software used in the goods, a security interest in | 22 |
| specific
goods and license of software used in the goods, a | 23 |
| lease of specific goods,
or a lease of specified goods and | 24 |
| a license of
software
used in the goods. In this paragraph, | 25 |
| "monetary obligation" means a monetary
obligation secured | 26 |
| by the goods or owed under a lease of the goods and | 27 |
| includes
a monetary obligation with respect to software | 28 |
| used in the goods. The term
does not include (i) charters | 29 |
| or other contracts involving the use or hire of a
vessel or | 30 |
| (ii) records that evidence a right to payment arising out | 31 |
| of the use
of a credit or charge card or information | 32 |
| contained on or for use with the
card. If a transaction is | 33 |
| evidenced by records that include an instrument or
series | 34 |
| of
instruments, the group of records taken together
|
|
|
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| constitutes chattel paper.
| 2 |
| (12) "Collateral" means the property subject to a | 3 |
| security interest or
agricultural lien. The term includes:
| 4 |
| (A) proceeds to which a security interest | 5 |
| attaches;
| 6 |
| (B) accounts, chattel paper, payment intangibles, | 7 |
| and promissory
notes that have been sold; and
| 8 |
| (C) goods that are the subject of a consignment.
| 9 |
| (13) "Commercial tort claim" means a claim arising in | 10 |
| tort with respect
to which:
| 11 |
| (A) the claimant is an organization; or
| 12 |
| (B) the claimant is an individual and the claim:
| 13 |
| (i) arose in the course of the claimant's | 14 |
| business or profession;
and
| 15 |
| (ii) does not include damages arising out of | 16 |
| personal injury to or
the death of an individual.
| 17 |
| (14) "Commodity account" means an account maintained | 18 |
| by a
commodity intermediary in which a commodity contract | 19 |
| is carried for a commodity
customer.
| 20 |
| (15) "Commodity contract" means a commodity futures | 21 |
| contract, an
option on a commodity futures contract, a | 22 |
| commodity option, or another contract if
the contract or | 23 |
| option is:
| 24 |
| (A) traded on or subject to the rules of a board of | 25 |
| trade that has been
designated as a contract market for | 26 |
| such a contract pursuant to federal commodities
laws; | 27 |
| or
| 28 |
| (B) traded on a foreign commodity board of trade, | 29 |
| exchange, or
market, and is carried on the books of a | 30 |
| commodity intermediary for a commodity
customer.
| 31 |
| (16) "Commodity customer" means a person for which a | 32 |
| commodity
intermediary carries a commodity contract on its | 33 |
| books.
| 34 |
| (17) "Commodity intermediary" means a person that:
|
|
|
|
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| 1 |
| (A) is registered as a futures commission merchant | 2 |
| under federal
commodities law; or
| 3 |
| (B) in the ordinary course of its business provides | 4 |
| clearance or
settlement services for a board of trade | 5 |
| that has been designated as a contract
market pursuant | 6 |
| to federal commodities law.
| 7 |
| (18) "Communicate" means:
| 8 |
| (A) to send a written or other tangible record;
| 9 |
| (B) to transmit a record by any means agreed upon | 10 |
| by the persons
sending and receiving the record; or
| 11 |
| (C) in the case of transmission of a record to or | 12 |
| by a filing office, to
transmit a record by any means | 13 |
| prescribed by filing-office rule.
| 14 |
| (19) "Consignee" means a merchant to which goods are | 15 |
| delivered in a
consignment.
| 16 |
| (20) "Consignment" means a transaction, regardless of | 17 |
| its form, in
which a person delivers goods to a merchant | 18 |
| for the purpose of sale and:
| 19 |
| (A) the merchant:
| 20 |
| (i) deals in goods of that kind under a name | 21 |
| other than the name
of the person making delivery;
| 22 |
| (ii) is not an auctioneer; and
| 23 |
| (iii) is not generally known by its creditors | 24 |
| to be substantially
engaged in selling the goods of | 25 |
| others;
| 26 |
| (B) with respect to each delivery, the aggregate | 27 |
| value of the goods is
$1,000 or more at the time of | 28 |
| delivery;
| 29 |
| (C) the goods are not consumer goods immediately | 30 |
| before delivery;
and
| 31 |
| (D) the transaction does not create a security | 32 |
| interest that secures an
obligation.
| 33 |
| (21) "Consignor" means a person that delivers goods to | 34 |
| a consignee in
a consignment.
|
|
|
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| (22) "Consumer debtor" means a debtor in a consumer | 2 |
| transaction.
| 3 |
| (23) "Consumer goods" means goods that are used or | 4 |
| bought for use
primarily for personal, family, or household | 5 |
| purposes.
| 6 |
| (24) "Consumer-goods transaction" means a consumer | 7 |
| transaction in
which:
| 8 |
| (A) an individual incurs an obligation primarily | 9 |
| for personal, family,
or household purposes; and
| 10 |
| (B) a security interest in consumer goods secures | 11 |
| the obligation.
| 12 |
| (25) "Consumer obligor" means an obligor who is an | 13 |
| individual and
who incurred the obligation as part of a | 14 |
| transaction entered into primarily for
personal, family, | 15 |
| or household purposes.
| 16 |
| (26) "Consumer transaction" means a transaction in | 17 |
| which (i) an
individual incurs an obligation primarily for | 18 |
| personal, family, or household
purposes, (ii) a security | 19 |
| interest secures the obligation, and (iii) the collateral | 20 |
| is held
or acquired primarily for personal, family, or | 21 |
| household purposes. The term
includes consumer-goods | 22 |
| transactions.
| 23 |
| (27) "Continuation statement" means an amendment of a | 24 |
| financing
statement which:
| 25 |
| (A) identifies, by its file number, the initial | 26 |
| financing statement to
which it relates; and
| 27 |
| (B) indicates that it is a continuation statement | 28 |
| for, or that it is filed
to continue the effectiveness | 29 |
| of, the identified financing statement.
| 30 |
| (28) "Debtor" means:
| 31 |
| (A) a person having an interest, other than a | 32 |
| security interest or other
lien, in the collateral, | 33 |
| whether or not the person is an obligor;
| 34 |
| (B) a seller of accounts, chattel paper, payment |
|
|
|
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| 1 |
| intangibles, or
promissory notes; or
| 2 |
| (C) a consignee.
| 3 |
| (29) "Deposit account" means a demand, time, savings, | 4 |
| passbook,
nonnegotiable certificates of deposit,
| 5 |
| uncertificated certificates of deposit, nontransferrable | 6 |
| certificates of
deposit, or
similar account maintained | 7 |
| with a bank. The term does not include investment
property | 8 |
| or accounts evidenced by an instrument.
| 9 |
| (30) "Document" means a document of title or a receipt | 10 |
| of the type
described in Section 7-201(2).
| 11 |
| (31) "Electronic chattel paper" means chattel paper | 12 |
| evidenced by a
record or records consisting of information | 13 |
| stored in an electronic medium.
| 14 |
| (32) "Encumbrance" means a right, other than an | 15 |
| ownership interest, in
real property. The term includes | 16 |
| mortgages and other liens on real property.
| 17 |
| (33) "Equipment" means goods other than inventory, | 18 |
| farm products, or
consumer goods.
| 19 |
| (34) "Farm products" means goods, other than standing | 20 |
| timber, with
respect to which the debtor is engaged in a | 21 |
| farming operation and which are:
| 22 |
| (A) crops grown, growing, or to be grown, | 23 |
| including:
| 24 |
| (i) crops produced on trees, vines, and | 25 |
| bushes; and
| 26 |
| (ii) aquatic goods produced in aquacultural | 27 |
| operations;
| 28 |
| (B) livestock, born or unborn, including aquatic | 29 |
| goods produced in
aquacultural operations;
| 30 |
| (C) supplies used or produced in a farming | 31 |
| operation; or
| 32 |
| (D) products of crops or livestock in their | 33 |
| unmanufactured states.
| 34 |
| (35) "Farming operation" means raising, cultivating, |
|
|
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| 1 |
| propagating,
fattening, grazing, or any other farming, | 2 |
| livestock, or aquacultural operation.
| 3 |
| (36) "File number" means the number assigned to an | 4 |
| initial financing
statement pursuant to Section 9-519(a).
| 5 |
| (37) "Filing office" means an office designated in | 6 |
| Section 9-501 as the
place to file a financing statement.
| 7 |
| (38) "Filing-office rule" means a rule adopted | 8 |
| pursuant to Section
9-526.
| 9 |
| (39) "Financing statement" means a record or records | 10 |
| composed of an
initial financing statement and any filed | 11 |
| record relating to the initial financing
statement.
| 12 |
| (40) "Fixture filing" means the filing of a financing | 13 |
| statement covering
goods that are or are to become fixtures | 14 |
| and satisfying Section 9-502(a) and (b).
The term includes | 15 |
| the filing of a financing statement covering goods of a
| 16 |
| transmitting utility which are or are to become fixtures.
| 17 |
| (41) "Fixtures" means goods that have become so related | 18 |
| to particular
real property that an interest in them arises | 19 |
| under real property law.
| 20 |
| (42) "General intangible" means any personal property, | 21 |
| including
things in action, other than accounts, chattel | 22 |
| paper, commercial tort claims, deposit
accounts, | 23 |
| documents, goods, instruments, investment property, | 24 |
| letter-of-credit
rights, letters of credit, money, and | 25 |
| oil, gas, or other minerals before extraction.
The term | 26 |
| includes payment intangibles and software.
| 27 |
| (43) "Good faith" means honesty in fact and the | 28 |
| observance of
reasonable commercial standards of fair | 29 |
| dealing.
| 30 |
| (44) "Goods" means all things that are movable when a | 31 |
| security interest
attaches. The term includes (i) | 32 |
| fixtures, (ii) standing timber that is to be cut and
| 33 |
| removed under a conveyance or contract for sale, (iii) the | 34 |
| unborn young of animals,
(iv) crops grown, growing, or to |
|
|
|
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|
| 1 |
| be grown, even if the crops are produced on trees,
vines, | 2 |
| or bushes, and (v) manufactured homes. The term also | 3 |
| includes a computer
program embedded in goods and any | 4 |
| supporting information provided in
connection with a | 5 |
| transaction relating to the program if (i) the program is
| 6 |
| associated with the goods in such a manner that it | 7 |
| customarily is considered part of
the goods, or (ii) by | 8 |
| becoming the owner of the goods, a person acquires a right | 9 |
| to
use the program in connection with the goods. The term | 10 |
| does not include a
computer program embedded in goods that | 11 |
| consist solely of the medium in which
the program is | 12 |
| embedded. The term also does not include accounts, chattel | 13 |
| paper,
commercial tort claims, deposit accounts, | 14 |
| documents, general intangibles,
instruments, investment | 15 |
| property, letter-of-credit rights, letters of credit, | 16 |
| money, or
oil, gas, or other minerals before extraction.
| 17 |
| (45) "Governmental unit" means a subdivision, agency, | 18 |
| department,
county, parish, municipality, or other unit of | 19 |
| the government of the United States, a
State, or a foreign | 20 |
| country. The term includes an organization having a | 21 |
| separate
corporate existence if the organization is | 22 |
| eligible to issue debt on which interest is
exempt from | 23 |
| income taxation under the laws of the United States.
| 24 |
| (46) "Health-care-insurance receivable" means an | 25 |
| interest in or claim
under a policy of insurance which is a | 26 |
| right to payment of a monetary
obligation for
health-care | 27 |
| goods or services provided.
| 28 |
| (47) "Instrument" means a negotiable instrument or any | 29 |
| other writing
that evidences a right to the payment of a | 30 |
| monetary obligation, is not itself a
security agreement or | 31 |
| lease, and is of a type that in ordinary course of
business | 32 |
| is
transferred by delivery with any necessary indorsement | 33 |
| or assignment. The term
does not include (i) investment | 34 |
| property, (ii) letters of credit,
(iii) nonnegotiable
|
|
|
|
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LRB094 03204 MJR 60762 a |
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| 1 |
| certificates of deposit, (iv) uncertificated certificates | 2 |
| of deposit, (v)
nontransferrable certificates of deposit, | 3 |
| or (vi)
writings that
evidence a right to payment arising | 4 |
| out of the use of a credit or charge card
or
information | 5 |
| contained on or for use with the card.
| 6 |
| (48) "Inventory" means goods, other than farm | 7 |
| products, which:
| 8 |
| (A) are leased by a person as lessor;
| 9 |
| (B) are held by a person for sale or lease or to be | 10 |
| furnished under a
contract of service;
| 11 |
| (C) are furnished by a person under a contract of | 12 |
| service; or
| 13 |
| (D) consist of raw materials, work in process, or | 14 |
| materials used or
consumed in a business.
| 15 |
| (49) "Investment property" means a security, whether | 16 |
| certificated or
uncertificated, security entitlement, | 17 |
| securities account, commodity contract, or
commodity | 18 |
| account.
| 19 |
| (50) "Jurisdiction of organization", with respect to a | 20 |
| registered
organization, means the jurisdiction under | 21 |
| whose law the organization is organized.
| 22 |
| (51) "Letter-of-credit right" means a right to payment | 23 |
| or performance
under a letter of credit, whether or not the | 24 |
| beneficiary has demanded or is at the
time entitled to | 25 |
| demand payment or performance. The term does not include | 26 |
| the
right of a beneficiary to demand payment or performance | 27 |
| under a letter of credit.
| 28 |
| (52) "Lien creditor" means:
| 29 |
| (A) a creditor that has acquired a lien on the | 30 |
| property involved by
attachment, levy, or the like;
| 31 |
| (B) an assignee for benefit of creditors from the | 32 |
| time of assignment;
| 33 |
| (C) a trustee in bankruptcy from the date of the | 34 |
| filing of the petition;
or
|
|
|
|
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| 1 |
| (D) a receiver in equity from the time of | 2 |
| appointment.
| 3 |
| (53) "Manufactured home" means a structure, | 4 |
| transportable in one or
more sections, which, in the | 5 |
| traveling mode, is eight body feet or more in width or
40 | 6 |
| body feet or more in length, or, when erected on site, is | 7 |
| 320 or more square feet,
and which is built on a permanent | 8 |
| chassis and designed to be used as a dwelling
with or | 9 |
| without a permanent foundation when connected to the | 10 |
| required utilities,
and includes the plumbing, heating, | 11 |
| air-conditioning, and electrical systems
contained | 12 |
| therein. The term includes any structure that meets all of | 13 |
| the
requirements of this paragraph except the size | 14 |
| requirements and with respect to
which the manufacturer | 15 |
| voluntarily files a certification required by the United
| 16 |
| States Secretary of Housing and Urban Development and | 17 |
| complies with the
standards established under Title 42 of | 18 |
| the United States Code.
| 19 |
| (54) "Manufactured-home transaction" means a secured | 20 |
| transaction:
| 21 |
| (A) that creates a purchase-money security | 22 |
| interest in a
manufactured home, other than a | 23 |
| manufactured home held as inventory; or
| 24 |
| (B) in which a manufactured home, other than a | 25 |
| manufactured home
held as inventory, is the primary | 26 |
| collateral.
| 27 |
| (55) "Mortgage" means a consensual interest in real | 28 |
| property, including
fixtures, which secures payment or | 29 |
| performance of an obligation.
| 30 |
| (56) "New debtor" means a person that becomes bound as | 31 |
| debtor under
Section 9-203(d) by a security agreement | 32 |
| previously entered into by another
person.
| 33 |
| (57) "New value" means (i) money, (ii) money's worth in | 34 |
| property,
services, or new credit, or (iii) release by a |
|
|
|
09400HB2197sam001 |
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LRB094 03204 MJR 60762 a |
|
| 1 |
| transferee of an interest in property
previously | 2 |
| transferred to the transferee. The term does not include an | 3 |
| obligation
substituted for another obligation.
| 4 |
| (58) "Noncash proceeds" means proceeds other than cash | 5 |
| proceeds.
| 6 |
| (59) "Obligor" means a person that, with respect to an | 7 |
| obligation
secured by a security interest in or an | 8 |
| agricultural lien on the collateral,
(i) owes
payment or | 9 |
| other performance of the obligation, (ii) has provided | 10 |
| property
other
than the collateral to secure payment or | 11 |
| other performance of the obligation,
or (iii)
is otherwise | 12 |
| accountable in whole or in part for payment or other | 13 |
| performance
of
the obligation. The term does not include | 14 |
| issuers or nominated persons under a
letter of credit.
| 15 |
| (60) "Original debtor",
except as used in Section
| 16 |
| 9-310(c), means
a person that, as debtor, entered into a
| 17 |
| security agreement to which a new debtor has become bound | 18 |
| under Section
9-203(d).
| 19 |
| (61) "Payment intangible" means a general intangible | 20 |
| under which the
account debtor's principal obligation is a | 21 |
| monetary obligation.
| 22 |
| (62) "Person related to", with respect to an | 23 |
| individual, means:
| 24 |
| (A) the spouse of the individual;
| 25 |
| (B) a brother, brother-in-law, sister, or | 26 |
| sister-in-law of the
individual;
| 27 |
| (C) an ancestor or lineal descendant of the | 28 |
| individual or the
individual's spouse; or
| 29 |
| (D) any other relative, by blood or marriage, of | 30 |
| the individual or the
individual's spouse who shares | 31 |
| the same home with the individual.
| 32 |
| (63) "Person related to", with respect to an | 33 |
| organization, means:
| 34 |
| (A) a person directly or indirectly controlling, |
|
|
|
09400HB2197sam001 |
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| controlled by, or
under common control with the | 2 |
| organization;
| 3 |
| (B) an officer or director of, or a person | 4 |
| performing similar
functions with respect to, the | 5 |
| organization;
| 6 |
| (C) an officer or director of, or a person | 7 |
| performing similar
functions with respect to, a person | 8 |
| described in subparagraph (A);
| 9 |
| (D) the spouse of an individual described in | 10 |
| subparagraph (A), (B),
or (C); or
| 11 |
| (E) an individual who is related by blood or | 12 |
| marriage to an
individual described in subparagraph | 13 |
| (A), (B), (C), or (D) and shares the same
home with the | 14 |
| individual.
| 15 |
| (64) "Proceeds", except as used in Section
9-609(b), | 16 |
| means
the following property:
| 17 |
| (A) whatever is acquired upon the sale, lease, | 18 |
| license, exchange, or
other disposition of collateral;
| 19 |
| (B) whatever is collected on, or distributed on | 20 |
| account of, collateral;
| 21 |
| (C) rights arising out of collateral;
| 22 |
| (D) to the extent of the value of collateral, | 23 |
| claims arising out of the
loss, nonconformity, or | 24 |
| interference with the use of, defects or infringement
| 25 |
| of
rights in, or damage to, the collateral; or
| 26 |
| (E) to the extent of the value of collateral and to | 27 |
| the extent payable
to the debtor or the secured party, | 28 |
| insurance payable by reason of the loss or
| 29 |
| nonconformity of, defects or infringement of rights | 30 |
| in, or damage to, the
collateral.
| 31 |
| (65) "Promissory note" means an instrument that | 32 |
| evidences a promise
to pay a monetary obligation, does not | 33 |
| evidence an order to pay, and does not
contain an | 34 |
| acknowledgment by a bank that the bank has received for |
|
|
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09400HB2197sam001 |
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LRB094 03204 MJR 60762 a |
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| deposit a
sum
of money or funds.
| 2 |
| (66) "Proposal" means a record authenticated by a | 3 |
| secured party which
includes the terms on which the secured | 4 |
| party is willing to accept collateral
in full
or partial | 5 |
| satisfaction of the obligation it secures pursuant to | 6 |
| Sections
9-620, 9-621,
and 9-622.
| 7 |
| (67) "Public-finance transaction" means a secured | 8 |
| transaction in
connection with which:
| 9 |
| (A) debt securities are issued;
| 10 |
| (B) all or a portion of the securities issued have | 11 |
| an initial stated
maturity of at least 20 years; and
| 12 |
| (C) the debtor, obligor, secured party, account | 13 |
| debtor or other person
obligated on collateral, | 14 |
| assignor or assignee of a secured obligation, or
| 15 |
| assignor or
assignee of a security interest is a State | 16 |
| or a governmental unit of a State.
| 17 |
| (68) "Pursuant to commitment", with respect to an | 18 |
| advance made or
other value given by a secured party, means | 19 |
| pursuant to the secured party's
obligation, whether or not | 20 |
| a subsequent event of default or other event not
within
the | 21 |
| secured party's control has relieved or may relieve the | 22 |
| secured party from
its
obligation.
| 23 |
| (69) "Record", except as used in "for record", "of | 24 |
| record", "record or
legal title", and "record owner", means | 25 |
| information that is inscribed on a
tangible
medium or which | 26 |
| is stored in an electronic or other medium and is | 27 |
| retrievable
in
perceivable form.
| 28 |
| (70) "Registered organization" means an organization | 29 |
| organized solely
under the law of a single State or the | 30 |
| United States and as to which the State
or the
United | 31 |
| States must maintain a public record showing the | 32 |
| organization to have
been
organized.
| 33 |
| (71) "Secondary obligor" means an obligor to the extent | 34 |
| that:
|
|
|
|
09400HB2197sam001 |
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| (A) the obligor's obligation is secondary; or
| 2 |
| (B) the obligor has a right of recourse with | 3 |
| respect to an obligation
secured by collateral against | 4 |
| the debtor, another obligor, or property of
either.
| 5 |
| (72) "Secured party" means:
| 6 |
| (A) a person in whose favor a security interest is | 7 |
| created or provided
for under a security agreement, | 8 |
| whether or not any obligation to be secured is
| 9 |
| outstanding;
| 10 |
| (B) a person that holds an agricultural lien;
| 11 |
| (C) a consignor;
| 12 |
| (D) a person to which accounts, chattel paper, | 13 |
| payment intangibles,
or promissory notes have been | 14 |
| sold;
| 15 |
| (E) a trustee, indenture trustee, agent, | 16 |
| collateral agent, or other
representative in whose | 17 |
| favor a security interest or agricultural lien is
| 18 |
| created or
provided for; or
| 19 |
| (F) a person that holds a security interest arising | 20 |
| under Section
2-401, 2-505, 2-711(3), 2A-508(5), | 21 |
| 4-210, or 5-118.
| 22 |
| (73) "Security agreement" means an agreement that | 23 |
| creates or provides
for a security interest.
| 24 |
| (74) "Send", in connection with a record or | 25 |
| notification, means:
| 26 |
| (A) to deposit in the mail, deliver for | 27 |
| transmission, or transmit by
any other usual means of | 28 |
| communication, with postage or cost of transmission
| 29 |
| provided for, addressed to any address reasonable | 30 |
| under the circumstances; or
| 31 |
| (B) to cause the record or notification to be | 32 |
| received within the time
that it would have been | 33 |
| received if properly sent under subparagraph (A).
| 34 |
| (75) "Software" means a computer program and any |
|
|
|
09400HB2197sam001 |
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| supporting
information provided in connection with a | 2 |
| transaction relating to the program.
The
term does not | 3 |
| include a computer program that is included in the | 4 |
| definition of
goods.
| 5 |
| (76) "State" means a State of the United States, the | 6 |
| District of
Columbia, Puerto Rico, the United States Virgin | 7 |
| Islands, or any territory or
insular
possession subject to | 8 |
| the jurisdiction of the United States.
| 9 |
| (77) "Supporting obligation" means a letter-of-credit | 10 |
| right or secondary
obligation that supports the payment or | 11 |
| performance of an account, chattel
paper, a
document, a | 12 |
| general intangible, an instrument, or investment property.
| 13 |
| (78) "Tangible chattel paper" means chattel paper | 14 |
| evidenced by a
record or records consisting of information | 15 |
| that is inscribed on a tangible
medium.
| 16 |
| (79) "Termination statement" means an amendment of a | 17 |
| financing
statement which:
| 18 |
| (A) identifies, by its file number, the initial | 19 |
| financing statement to
which it relates; and
| 20 |
| (B) indicates either that it is a termination | 21 |
| statement or that the
identified financing statement | 22 |
| is no longer effective.
| 23 |
| (80) "Transmitting utility" means a person primarily | 24 |
| engaged in the
business of:
| 25 |
| (A) operating a railroad, subway, street railway, | 26 |
| or trolley bus;
| 27 |
| (B) transmitting communications electrically, | 28 |
| electromagnetically,
or by light;
| 29 |
| (C) transmitting goods by pipeline or sewer; or
| 30 |
| (D) transmitting or producing and transmitting | 31 |
| electricity, steam,
gas, or water.
| 32 |
| (b) Definitions in other Articles. The following | 33 |
| definitions in other
Articles apply to this Article:
| 34 |
| "Applicant". Section 5-102.
|
|
|
|
09400HB2197sam001 |
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| 1 |
| "Beneficiary". Section 5-102.
| 2 |
| "Broker". Section 8-102.
| 3 |
| "Certificated security". Section 8-102.
| 4 |
| "Check". Section 3-104.
| 5 |
| "Clearing corporation". Section 8-102.
| 6 |
| "Contract for sale". Section 2-106.
| 7 |
| "Customer". Section 4-104.
| 8 |
| "Entitlement holder". Section 8-102.
| 9 |
| "Financial asset". Section 8-102.
| 10 |
| "Holder in due course". Section 3-302.
| 11 |
| "Issuer" (with respect to a letter of
credit or | 12 |
| letter-of-credit right). Section 5-102.
| 13 |
| "Issuer" (with respect to a security). Section 8-201.
| 14 |
| "Lease". Section 2A-103.
| 15 |
| "Lease agreement". Section 2A-103.
| 16 |
| "Lease contract". Section 2A-103.
| 17 |
| "Leasehold interest". Section 2A-103.
| 18 |
| "Lessee". Section 2A-103.
| 19 |
| "Lessee in ordinary course of business". Section 2A-103.
| 20 |
| "Lessor". Section 2A-103.
| 21 |
| "Lessor's residual interest". Section 2A-103.
| 22 |
| "Letter of credit". Section 5-102.
| 23 |
| "Merchant". Section 2-104.
| 24 |
| "Negotiable instrument". Section 3-104.
| 25 |
| "Nominated person". Section 5-102.
| 26 |
| "Note". Section 3-104.
| 27 |
| "Proceeds of a letter of credit". Section 5-114.
| 28 |
| "Prove". Section 3-103.
| 29 |
| "Sale". Section 2-106.
| 30 |
| "Securities account". Section 8-501.
| 31 |
| "Securities intermediary". Section 8-102.
| 32 |
| "Security". Section 8-102.
| 33 |
| "Security certificate". Section 8-102.
| 34 |
| "Security entitlement". Section 8-102.
|
|
|
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| "Uncertificated security". Section 8-102.
| 2 |
| (c) Article 1 definitions and principles. Article 1 | 3 |
| contains general
definitions and principles of construction | 4 |
| and interpretation applicable
throughout
this Article.
| 5 |
| (Source: P.A. 91-893, eff. 7-1-01; 92-819, eff. 8-21-02.)
| 6 |
| (810 ILCS 5/9-108) (from Ch. 26, par. 9-108)
| 7 |
| Sec. 9-108. Sufficiency of description.
| 8 |
| (a) Sufficiency of description. Except as otherwise | 9 |
| provided in
subsections (c), (d), and (e), a description of | 10 |
| personal or real property is
sufficient,
whether or not it is | 11 |
| specific, if it reasonably identifies what is described.
| 12 |
| (b) Examples of reasonable identification. Except as | 13 |
| otherwise provided
in subsection (d), a description of | 14 |
| collateral reasonably identifies the
collateral if it
| 15 |
| identifies the collateral by:
| 16 |
| (1) specific listing;
| 17 |
| (2) category;
| 18 |
| (3) except as otherwise provided in subsection (e), a | 19 |
| type of collateral
defined in the Uniform Commercial Code;
| 20 |
| (4) quantity;
| 21 |
| (5) computational or allocational formula or | 22 |
| procedure; or
| 23 |
| (6) except as otherwise provided in subsection (c), any | 24 |
| other method, if
the identity of the collateral is | 25 |
| objectively determinable.
| 26 |
| (c) Supergeneric description not sufficient. A description | 27 |
| of collateral as
"all the debtor's assets" or "all the debtor's | 28 |
| personal property" or using words of
similar import does not | 29 |
| reasonably identify the collateral.
| 30 |
| (d) Investment property. Except as otherwise provided in | 31 |
| subsection (e),
a description of a security entitlement, | 32 |
| securities account, or commodity account is
sufficient if it | 33 |
| describes:
|
|
|
|
09400HB2197sam001 |
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| 1 |
| (1) the collateral by those terms or as investment | 2 |
| property; or
| 3 |
| (2) the underlying financial asset or commodity | 4 |
| contract.
| 5 |
| (e) When description by type insufficient. A description | 6 |
| only by type of
collateral defined in the Uniform Commercial | 7 |
| Code is an insufficient
description
of:
| 8 |
| (1) a commercial tort claim; or
| 9 |
| (2) in a consumer transaction, consumer goods, a | 10 |
| security entitlement, a
securities account, or a commodity | 11 |
| account. | 12 |
| (f) A description of bondable property is sufficient if it | 13 |
| refers to the financing order establishing the bondable | 14 |
| property, as defined in Section 20-105 of the Public Utilities | 15 |
| Act.
| 16 |
| (Source: P.A. 91-893, eff. 7-1-01.)
| 17 |
| (810 ILCS 5/9-203) (from Ch. 26, par. 9-203)
| 18 |
| Sec. 9-203. Attachment and enforceability of security | 19 |
| interest; proceeds;
supporting obligations; formal requisites.
| 20 |
| (a) Attachment. A security interest attaches to collateral | 21 |
| when it becomes
enforceable against the debtor with respect to | 22 |
| the collateral, unless an
agreement
expressly postpones the | 23 |
| time of attachment.
| 24 |
| (b) Enforceability. Except as otherwise provided in | 25 |
| subsections (c)
through (i), a security interest is enforceable | 26 |
| against the debtor and third
parties
with respect to the | 27 |
| collateral only if:
| 28 |
| (1) value has been given;
| 29 |
| (2) the debtor has rights in the collateral or the | 30 |
| power to transfer
rights
in the collateral to a secured | 31 |
| party; and
| 32 |
| (3) one of the following conditions is met:
| 33 |
| (A) the debtor has authenticated a security |
|
|
|
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| agreement that provides a
description of the | 2 |
| collateral and, if the security interest covers timber | 3 |
| to be
cut, a
description of the land concerned;
| 4 |
| (B) the collateral is not a certificated security | 5 |
| and is in the
possession of the secured party under | 6 |
| Section 9-313 pursuant to the debtor's
security | 7 |
| agreement;
| 8 |
| (C) the collateral is a certificated security in | 9 |
| registered form and the
security certificate has been | 10 |
| delivered to the secured party under Section 8-301
| 11 |
| pursuant to the debtor's security agreement; or
| 12 |
| (D) the collateral is deposit accounts, electronic | 13 |
| chattel paper,
investment property, or | 14 |
| letter-of-credit rights, and the secured party has | 15 |
| control
under Section 9-104, 9-105, 9-106, or 9-107 | 16 |
| pursuant to the debtor's security
agreement.
| 17 |
| (c) Other UCC provisions. Subsection (b) is subject to | 18 |
| Section 4-210 on
the security interest of a collecting bank, | 19 |
| Section 5-118 on the security interest of a
letter-of-credit | 20 |
| issuer or nominated person, Section 9-110 on a security | 21 |
| interest
arising under Article 2 or 2A, and Section 9-206 on | 22 |
| security interests in investment
property and Section 9-515 on | 23 |
| security interests in bondable property .
| 24 |
| (d) When person becomes bound by another person's security
| 25 |
| agreement. A person becomes bound as debtor by a security | 26 |
| agreement entered
into by another person if, by operation of | 27 |
| law other than this Article or by contract:
| 28 |
| (1) the security agreement becomes effective to create | 29 |
| a security interest
in the person's property; or
| 30 |
| (2) the person becomes generally obligated for the | 31 |
| obligations of the
other person, including the obligation | 32 |
| secured under the security agreement, and
acquires or | 33 |
| succeeds to all or substantially all of the assets of the | 34 |
| other person.
|
|
|
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09400HB2197sam001 |
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LRB094 03204 MJR 60762 a |
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| (e) Effect of new debtor becoming bound. If a new debtor | 2 |
| becomes
bound as debtor by a security agreement entered into by | 3 |
| another person:
| 4 |
| (1) the agreement satisfies subsection (b)(3) with | 5 |
| respect to existing or
after-acquired property of the new | 6 |
| debtor to the extent the property is described in
the | 7 |
| agreement; and
| 8 |
| (2) another agreement is not necessary to make a | 9 |
| security interest in the
property enforceable.
| 10 |
| (f) Proceeds and supporting obligations. The attachment of | 11 |
| a security
interest in collateral gives the secured party the | 12 |
| rights to proceeds provided
by
Section 9-315 and is also | 13 |
| attachment of a security interest in a supporting
obligation | 14 |
| for the collateral.
| 15 |
| (g) Lien securing right to payment. The attachment of a | 16 |
| security interest
in a right to payment or performance secured | 17 |
| by a security interest or other
lien on
personal or real | 18 |
| property is also attachment of a security interest in the
| 19 |
| security
interest, mortgage, or other lien.
| 20 |
| (h) Security entitlement carried in securities account. | 21 |
| The attachment
of a security interest in a securities account | 22 |
| is also attachment of a security
interest
in the security | 23 |
| entitlements carried in the securities account.
| 24 |
| (i) Commodity contracts carried in commodity account. The
| 25 |
| attachment of a security interest in a commodity account is | 26 |
| also attachment of
a
security interest in the commodity | 27 |
| contracts carried in the commodity
account. | 28 |
| (j) The attachment of a security interest in bondable | 29 |
| transition property shall attach automatically to such | 30 |
| bondable property at the time that such bondable transition | 31 |
| property comes into existence in accordance with Section 20-150 | 32 |
| of the Public Utilities Act.
| 33 |
| (Source: P.A. 91-893, eff. 7-1-01.)
|
|
|
|
09400HB2197sam001 |
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| 1 |
| (810 ILCS 5/9-301) (from Ch. 26, par. 9-301)
| 2 |
| Sec. 9-301. Law governing perfection and priority of | 3 |
| security interests. Except as otherwise provided in Sections | 4 |
| 9-303 through 9-306.1,
the following
rules
determine the law | 5 |
| governing perfection, the effect of perfection or
| 6 |
| nonperfection,
and the priority of a security interest in | 7 |
| collateral:
| 8 |
| (1) Except as otherwise provided in this Section, while | 9 |
| a debtor is
located
in a jurisdiction, the local law of | 10 |
| that jurisdiction governs perfection, the
effect of
| 11 |
| perfection or nonperfection, and the priority of a security | 12 |
| interest in
collateral.
| 13 |
| (2) While collateral is located in a jurisdiction, the | 14 |
| local law of that
jurisdiction governs perfection, the | 15 |
| effect of perfection or nonperfection, and
the
priority of | 16 |
| a possessory security interest in that collateral.
| 17 |
| (3) Except as otherwise provided in paragraph (4), | 18 |
| while negotiable
documents, goods, instruments, money, or | 19 |
| tangible chattel paper is located in a
jurisdiction, the | 20 |
| local law of that jurisdiction governs:
| 21 |
| (A) perfection of a security interest in the goods | 22 |
| by filing a fixture
filing;
| 23 |
| (B) perfection of a security interest in timber to | 24 |
| be cut; and
| 25 |
| (C) the effect of perfection or nonperfection and | 26 |
| the priority of a
nonpossessory security interest in | 27 |
| the collateral.
| 28 |
| (4) The local law of the jurisdiction in which the | 29 |
| wellhead or minehead is
located governs perfection, the | 30 |
| effect of perfection or nonperfection, and the
priority of | 31 |
| a security interest in as-extracted collateral. | 32 |
| (5) Notwithstanding item (1), the local laws of this | 33 |
| State shall govern the perfection, the effect of perfection | 34 |
| or nonperfection, and the priority of a security interest |
|
|
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09400HB2197sam001 |
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LRB094 03204 MJR 60762 a |
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| 1 |
| in bondable property, as defined in Section 20-105 of the | 2 |
| Public Utilities Act.
| 3 |
| (Source: P.A. 91-893, eff. 7-1-01; 92-234, eff.
1-1-02.)
| 4 |
| (810 ILCS 5/9-515)
| 5 |
| Sec. 9-515. Duration and effectiveness of financing | 6 |
| statement; effect of
lapsed financing statement.
| 7 |
| (a) Five-year effectiveness. Except as otherwise provided | 8 |
| in
subsections (b), (e), (f), and (g), a filed financing | 9 |
| statement is effective
for a period
of five years after the | 10 |
| date of filing.
| 11 |
| (b) Public-finance or manufactured-home transaction. | 12 |
| Except
as otherwise provided in subsections (e), (f), and (g), | 13 |
| an initial financing
statement
filed in connection with a | 14 |
| public-finance transaction or manufactured-home
transaction is | 15 |
| effective for a period of 30 years after the date of filing if | 16 |
| it indicates
that it is filed in connection with a | 17 |
| public-finance transaction or
manufactured-home transaction.
| 18 |
| (c) Lapse and continuation of financing statement. The
| 19 |
| effectiveness of a filed financing statement lapses on the | 20 |
| expiration of the period of
its effectiveness unless before the | 21 |
| lapse a continuation statement is filed pursuant to
subsection | 22 |
| (d). Upon lapse, a financing statement ceases to be effective | 23 |
| and any
security interest or agricultural lien that was | 24 |
| perfected by the financing statement
becomes unperfected, | 25 |
| unless the security interest is perfected otherwise. If the
| 26 |
| security interest or agricultural lien becomes unperfected | 27 |
| upon lapse, it is deemed
never to have been perfected as | 28 |
| against a purchaser of the collateral for value.
| 29 |
| (d) When continuation statement may be filed. A | 30 |
| continuation
statement may be filed only within six months | 31 |
| before the expiration of the five-year
period specified in | 32 |
| subsection (a) or the 30-year period specified in subsection | 33 |
| (b),
whichever is applicable.
|
|
|
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|
| 1 |
| (e) Effect of filing continuation statement. Except as | 2 |
| otherwise
provided in Section 9-510, upon timely filing of a | 3 |
| continuation statement, the
effectiveness of the initial | 4 |
| financing statement continues for a period of five years
| 5 |
| commencing on the day on which the financing statement would | 6 |
| have become
ineffective in the absence of the filing. Upon the | 7 |
| expiration of the five-year period,
the financing statement | 8 |
| lapses in the same manner as provided in subsection (c),
| 9 |
| unless, before the lapse, another continuation statement is | 10 |
| filed pursuant to
subsection (d). Succeeding continuation | 11 |
| statements may be filed in the same
manner to continue the | 12 |
| effectiveness of the initial financing statement.
| 13 |
| (f) Transmitting utility financing statement. If a debtor | 14 |
| is a
transmitting utility and a filed financing statement so | 15 |
| indicates, the financing
statement is effective until a | 16 |
| termination statement is filed.
| 17 |
| (g) Record of mortgage as financing statement. A record of | 18 |
| a
mortgage that is effective as a financing statement filed as | 19 |
| a fixture filing under
Section 9-502(c) remains effective as a | 20 |
| financing statement filed as a fixture
filing
until the | 21 |
| mortgage is released or satisfied of record or its | 22 |
| effectiveness
otherwise
terminates as to the real property. | 23 |
| (h) Bondable property. If a filed financing statement | 24 |
| relates to a security interest in bondable property and the | 25 |
| financing statement so states, it is effective until a | 26 |
| termination statement is filed. | 27 |
| (i) Without in any way detracting from the characterization | 28 |
| of bondable property as a vested property right under Section | 29 |
| 20-120 of the Public Utilities Act, for purposes of this | 30 |
| Article 9 of the Uniform Commercial Code, bondable property, as | 31 |
| defined in item (8.5) of subsection (a) of Section 9-102, shall | 32 |
| constitute a general intangible. For purposes of this Article, | 33 |
| bondable property shall be in existence whether or not the | 34 |
| revenues or proceeds in respect thereof have accrued, in |
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09400HB2197sam001 |
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LRB094 03204 MJR 60762 a |
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| 1 |
| accordance with Section 20-150 of the Public Utilities Act. The | 2 |
| validity, perfection, or priority of any security interest in | 3 |
| bondable property shall not be defeated or adversely affected | 4 |
| by changes to the financing order or to the bond charges | 5 |
| payable by any residential customer or by the commingling, by | 6 |
| an electric utility (as defined in Section 16-102 of the Public | 7 |
| Utilities Act) or by any other person responsible for | 8 |
| collecting bondable property under Section 20-150 of the Public | 9 |
| Utilities Act, of revenues received from bondable property with | 10 |
| any other funds. Any description of bondable property in a | 11 |
| security agreement or other agreement or a financing statement | 12 |
| shall be sufficient if it refers to the financing order | 13 |
| establishing the bondable property. | 14 |
| (j) In addition to the other rights and remedies provided | 15 |
| or authorized by the Public Utilities Act and by this Article, | 16 |
| when a debtor is in default under a security agreement and the | 17 |
| collateral is bondable property, then, upon application by the | 18 |
| pledgee, the Illinois Commerce Commission or any court of | 19 |
| competent jurisdiction shall order the sequestration and | 20 |
| payment to the pledgee of all collections and other proceeds of | 21 |
| such bondable property up to the value of the property. In the | 22 |
| event of any conflicts, priority among pledgees or transferees | 23 |
| shall be determined under this Article. The pledgee shall | 24 |
| account to the debtor for any surplus and, unless otherwise | 25 |
| agreed, the debtor shall be liable for any deficiency.
| 26 |
| (Source: P.A. 91-893, eff. 7-1-01.)
| 27 |
| Section 99. Effective date. This Act takes effect upon | 28 |
| becoming law.".
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