1. (a) If an agreement by an energy utility or an assignee to assign an SNG property interest expressly states that the assignment is a sale or is otherwise an absolute transfer:

   1. (1) the resulting transaction:

      1. (A) is a true sale; and
      2. (B) is not a secured transaction; and
   2. (2) title, both legal and equitable, passes to the person to which the SNG property interest is assigned.

2. (b) A transaction resulting from an agreement described in subsection (a) is a true sale regardless of whether:

   1. (1) the assignee has recourse against the assignor; or

   2. (2) the agreement provides for any of the following:

      1. (A) The assignor's retention of an equity interest in the SNG property interest transferred.
      2. (B) Continuing obligations of the energy utility under the qualified contract, including the obligation of the energy utility to serve as the collector of qualified costs.
      3. (C) The treatment of the transfer as a financing for tax, financial reporting, or other purposes.

As added by P.L.175-2007, SEC.21.