California Public Utilities Code

§ 849.5

PUC § 849.5 Effective Jan 1, 2015Div. 1 · Part 1 · Ch. 4 · Art. 5.7

Statute text

(a)A sale, assignment, or transfer of water supply property by a qualifying water utility to an affiliate or to a financing entity, or by an affiliate of a qualifying water utility or a financing entity to another financing entity, which the parties, in the governing documentation, have expressly stated to be a sale or other absolute transfer, in a transaction approved in a financing order, shall be treated as an absolute transfer of all of the transferor’s right, title, and interest, as in a true sale, and not as a pledge or other financing order of the water supply property, other than for federal and state income and franchise tax purposes.

(b)The characterization of the sale, assignment, or transfer as an absolute transfer and true sale and the corresponding characterization of the property interest of the purchaser shall not be affected or impaired by, among other things, the occurrence of any of the following:

(1)Commingling of water supply charge revenues with other amounts.

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Legislative history

Added by Stats. 2014, Ch. 482, Sec. 6. (SB 936) Effective January 1, 2015.