1. (a) An agreement by an electric company or assignee to transfer rate stabilization property that expressly states that the transfer is a sale or other absolute transfer signifies that:

   1. (1) the transaction is a true sale and is not a secured transaction; and
   2. (2) legal and equitable title has passed to the entity to which the rate stabilization property is transferred.

2. (b) The status of the transfer as a true sale prevails regardless of any recourse the purchaser may have against the seller, or any other term of the parties' agreement, including:

   1. (1) the seller's retention of an equity interest in the rate stabilization property;
   2. (2) the fact that the electric company acts as the collector of qualified rate stabilization charges relating to the rate stabilization property; and
   3. (3) the treatment of the transfer as a financing for tax, financial reporting, or other purposes.

Added by Acts 2006, 1st Sp. Sess., c. 5, § 1, eff. June 23, 2006.