Louisiana Revised Statutes 45:1335 – Mode of creation; acceptance of beneficial interests; amendments
Terms Used In Louisiana Revised Statutes 45:1335
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Ancillary agreement: means any bond, insurance policy, letter of credit, reserve account, surety bond, swap arrangement, hedging arrangement, liquidity or credit support arrangement, or other financial arrangement entered into in connection with the issuance or payment of system restoration bonds. See Louisiana Revised Statutes 45:1312
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Clerk of court: An officer appointed by the court to work with the chief judge in overseeing the court's administration, especially to assist in managing the flow of cases through the court and to maintain court records.
- Commission: means the Public Service Commission or, solely with respect to an electric or gas utility furnishing electric or natural gas service within the city of New Orleans, the council of the city of New Orleans, as applicable. See Louisiana Revised Statutes 45:1312
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means the Louisiana Utilities Restoration Corporation. See Louisiana Revised Statutes 45:1312
- Financing order: means an order of the commission, if granted by the commission in its sole discretion, which allows for all of the following:
(a) The assessment, imposition, and periodic adjustment of system restoration charges by the corporation and the collection thereof by a utility as an agent on behalf of the corporation. See Louisiana Revised Statutes 45:1312
- Related bonds: means , with respect to a trust, the system restoration bonds that funded the net proceeds transferred by an issuer to the corporation and then contributed by the corporation to that trust. See Louisiana Revised Statutes 45:1332
- Rescission: The cancellation of budget authority previously provided by Congress. The Impoundment Control Act of 1974 specifies that the President may propose to Congress that funds be rescinded. If both Houses have not approved a rescission proposal (by passing legislation) within 45 days of continuous session, any funds being withheld must be made available for obligation.
- State: means the state of Louisiana. See Louisiana Revised Statutes 45:1312
- Trust: means an express special public trust created only pursuant to and in compliance with the provisions of this Subpart. See Louisiana Revised Statutes 45:1332
- Trust agreement: means , with respect to a trust, the written instrument that created the trust together with all proper amendments. See Louisiana Revised Statutes 45:1332
- Trustee: A person or institution holding and administering property in trust.
- Utility: means an electric utility or a gas utility. See Louisiana Revised Statutes 45:1312
A. A trust shall be created, organized, structured, and empowered by a written instrument, which shall be in accordance with this Subpart. A trust agreement shall be subscribed by the corporation as settlor by authentic act or by act under private signature executed in the presence of two witnesses and duly acknowledged by the settlor or by the affidavit of one of the attesting witnesses. A trust agreement shall become effective upon acceptance by the trustee and the beneficiaries as provided in this Section. A trust’s existence as a juridical person begins, and the trust is duly organized, when its trust agreement becomes effective, even if no property is contributed to that trust until a later time. Upon effectiveness, a trust agreement shall be and constitute a binding contract among the corporation as settlor, the beneficiaries, and the trustee, for the acceptance of the beneficial interests in the trust by the designated beneficiaries, and the application of the proceeds of the trust property and its operation for the purposes and in accordance with the stipulations of the approved trust agreement. A trust agreement shall not be an ancillary agreement as defined in La. Rev. Stat. 45:1312.
B. Before the execution of a trust agreement, that instrument shall be approved by the commission in a financing order, or by the use of an approval method provided in a financing order.
C. Before a trust agreement and a trust become effective, the trust agreement shall be accepted by the trustees and the beneficiaries. The trustee may accept the trust in the trust agreement, or in a separate written instrument within a reasonable amount of time after the trust agreement’s execution. Each beneficiary may accept the trust in the trust agreement or by written acceptance of the beneficial interest endorsed thereon. The corporation settlor and the related utility shall be the trust’s only beneficiaries.
D. Promptly after a trust agreement takes effect, the trust agreement, together with any separate written acceptances, shall be recorded in the conveyance records of the clerk of court of the parish of East Baton Rouge.
E. A trust agreement may be modified, amended, terminated, or rescinded only with the express approval of the commission, the corporation, the beneficiary-related utility, and its trustee. Each amendment to a trust agreement shall be recorded in the conveyance records of the clerk of court of the parish of East Baton Rouge.
F. A trust shall have duration for the term specified in the trust agreement. Notwithstanding any provisions of the trust agreement or the provisions of Subsection E of this Section, no termination, rescission, rehabilitation, liquidation, or dissolution of a trust shall take effect as long as any of the related bonds are outstanding. Upon termination, the trustee shall file a certificate of termination of the trust agreement in the conveyance records of the clerk of court of the parish of East Baton Rouge.
G. Each trust agreement shall establish a name for its trust that is distinguishable from the name of every other trust previously created by the corporation and from the name of any entity registered with the secretary of state. The name shall not imply that the trust is a political subdivision or an administrative agency of this state.
Acts 2021, No. 293, §3, eff. June 14, 2021.