# A.R.S. § 30-1006: 30-1006 Transition property; security interest; lien; priority > Arizona · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1006 ## Section - **Citation:** A.R.S. § 30-1006 - **Heading:** 30-1006 Transition property; security interest; lien; priority - **Jurisdiction:** Arizona - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** Arizona Code / Title 30 / Chapter 8 / Article 1 / Section 1006 ## Text 30-1006. Transition property; security interest; lien; priority A. This section applies to all purported transfers of, grants of liens on, or security interests in transition property.  Except as otherwise provided in this section, the creation, perfection and enforcement of a security interest in transition property that is pledged to secure the payment of the ongoing financing costs are governed by this section. B. The description of or reference to transition property in a transfer or security agreement is sufficient if and only if the description or reference refer to this chapter and the financing resolution describing the transition property.  A security interest in transition property is created, valid, binding and enforceable at the latest of any of the following: 1. When the transition bonds are issued by the qualified special purpose entity. 2. When a security agreement is executed and delivered by the qualified special purpose entity. 3. When value is received by the qualified special purpose entity for the transition bonds. C. The security interest in transition property is a statutory lien that attaches automatically in favor of the applicable financing party when the transition bond is issued and value for the transition bonds is received.  The security interest attaches without any physical delivery of any collateral or other act, and the security interest is valid, binding and perfected against all parties that have claims of any kind against the person granting the security interest, regardless of whether the parties have notice of a lien, on the filing of a financing statement with the secretary of state. The secretary of state shall maintain the financing statement in the same manner and in the same recordkeeping system maintained for financing statements that are filed pursuant to title 47, chapter 9, article 5.  Financing statements that are filed pursuant to this section are effective without the need to file a continuation statement until a termination statement is filed. D. A transfer of an interest, including a grant of a lien or security interest, in transition property is perfected against all third persons.  A security interest in transition property is a continuously perfected security interest and has priority over any other lien that may subsequently attach to the transition property unless the holder of the security interest has agreed in writing otherwise. E. The priority of a security interest in transition property is not affected by the commingling of financing revenues with other funds.  Any pledgee or secured party has a perfected security interest in the amount of all financing revenues that are deposited in any account of the servicer in which financing revenues have been commingled with other monies, and any other security interest that may apply to such financing revenues is terminated when those funds are transferred to a segregated account for a financing party or assignee of a financing party. F. The true-up mechanism does not affect the validity, perfection or priority of a security interest in or transfer of transition property. G. The validity, perfection or priority of a lien and security interest under this chapter is not impaired by any later modification of a financing resolution or changes in a customer's financing charges. ## Nearby sections - [A.R.S. § 30-1001 30-1001 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1001.md) - [A.R.S. § 30-1002 30-1002 Statement of public policy](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1002.md) - [A.R.S. § 30-1003 30-1003 Securitization transactions; public meeting; notice; securitization proposal; financing resolution adoption](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1003.md) - [A.R.S. § 30-1004 30-1004 Transition property; property rights; default on transition bonds](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1004.md) - [A.R.S. § 30-1005 30-1005 Transition bonds; issuance; authority of qualified special purpose entity; reimbursement of costs](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1005.md) - [A.R.S. § 30-1006 30-1006 Transition property; security interest; lien; priority](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1006.md) - [A.R.S. § 30-1007 30-1007 Financing charges; true-up mechanism; civil action](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1007.md) - [A.R.S. § 30-1008 30-1008 Public power entity as servicer; transition billing services tariffs; AAA rating](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1008.md) - [A.R.S. § 30-1009 30-1009 Transition bonds; irrevocability; public policy; noncompliance](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1009.md) - [A.R.S. § 30-1010 30-1010 Financing resolution; application for rehearing; judicial review](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1010.md) - [A.R.S. § 30-1011 30-1011 Fees and taxes](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1011.md) - [A.R.S. § 30-1012 30-1012 Transition bonds; public debt prohibition](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1012.md) - [A.R.S. § 30-1013 30-1013 Transition bonds; legal investments](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1013.md) - [A.R.S. § 30-1014 30-1014 Obligations of successor to public power entity](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1014.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AZ_T30_C8_A1_S1006. 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